OVERVIEW A 401k loan allows you to borrow money from your own 401k plan. You’re allowed to borrow up to 50% of your plan value, up to a maximum of $50,000. Here’s everything you need to know about a 401k loan’s interest rates, taxes, and fees. What are the interest rates on a 401k loan? The interest […]
401K BASIC WITHDRAWAL RULES Retirement plans, like the 401k, have an eligible age for making qualified withdrawals. If you take money out of your account before you reach the eligible age, you’ll have to pay penalties and taxes. When can you withdraw from a 401k? The eligible age for withdrawing from a 401k is 59½. Earlier […]
The employer-sponsored 401k plan comes in two different account types: Traditional and Roth. The main difference between them is when and how they get taxed. Traditional 401k contributions give you tax benefits when you contribute money into your plan. Roth 401k contributions give you tax benefits when you withdraw money from your plan. Here’s everything […]
401K OVERVIEW & FAQ What is a 401k? A 401k is an employer-sponsored retirement savings plan. Employees can contribute a part of their paycheck each month, and companies may choose to match contributions up to a certain limit (ex. A dollar-for-dollar employer match up to 5% of an employee’s salary each year). Contributions to your […]
Roth retirement accounts have a 5-year rule, but the rules are slightly different for a Roth IRA and a Roth 401k (or Roth solo 401k). The Roth IRA lets you withdraw your contributions from your account at any age without penalty, even if you’re not 59½ years of age yet. To withdraw earnings from your account, […]
OVERVIEW A 401k plan has yearly contribution limits. The 401k contribution limit for 2022 is $61,000 ($67,500 if age 50+). The limit for 2023 is $66,000 ($73,500 if age 50+). The IRS sets these guidelines so that you can’t contribute more than the allowable amount in a tax-advantaged retirement plan. An overcontribution is when you […]
If you forgot about an old 401k plan, you’re not alone. According to a study by Capitalize, there were over 25 million lost 401k accounts totalling $1.35 trillion in value in 2021. Finding a lost 401k account is actually quite easy. In most cases, it’ll be right where you left it – at your old […]
