Many employers will opt to offer their employees retirement benefits through a SIMPLE IRA (Savings Incentive Match Plan for Employees) rather than a 401k plan. A SIMPLE IRA is much easier to set up, is less expensive, and requires less maintenance than a 401k. If you’re an employee who receives a SIMPLE IRA from your […]
If you’re looking to purchase a home, and have funds invested in a 401k plan that you’d like to use as a downpayment, here are all the different options you can take, and important factors to consider before making a final decision. Can I use my 401k to purchase a home? Some retirement plans, like […]
A Roth IRA is an individual retirement account that lets you contribute post-tax dollars (income you’ve already paid taxes on) in return for tax-free withdrawals in retirement. Money in your Roth IRA can get invested in a variety of traditional assets, and even alternative assets if you choose to open a self-directed Roth IRA. Roth […]
Qualified retirement plans, like a 401k, have a nondiscrimination rule stating that all employees of a company must receive the same retirement benefits, regardless of their position and income level at the company. To do this, a company must divide their employees into two different groups: The IRS sets the qualifications for each group each […]
An early distribution from your 401k is typically taxed with a 10% penalty plus income taxes if you’re under the age of 59½. However, the IRS can grant an exemption if the withdrawal is taken due to hardship. You’ll still have to pay income taxes, but you won’t have to pay the 10% penalty. How […]
If you’re looking to take money out of your 401k plan, either through a rollover or withdrawal, it can take anywhere from a few business days to two months, depending on what options you choose. How long does a 401k rollover take? A 401k rollover is the transfer of money from your old 401k plan […]
The SEP IRA and SIMPLE IRA are both retirement plans available to business owners. They offer higher contribution limits than a Roth or traditional IRA, and are easy to set up and maintain compared to a regular 401k plan. However, the two accounts differ in objective and function. The SEP IRA is more advantageous for […]
There are many different kinds of IRAs, each with its own set of rules and benefits. A traditional IRA and Roth IRA are the most similar. They have the same contribution limits and eligibility rules, but only really differ in when and how they get taxed. A SEP IRA is actually closer in function to […]
The SIMPLE IRA has slightly different withdrawal rules than other retirement plans. Much of it works the same way, but there’s an extra provision that prevents withdrawals from the account within two years of opening it. How to withdraw from a SIMPLE IRA without penalties A SIMPLE IRA has similar withdrawal rules as a traditional […]
