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 An IRA overcontribution occurs when you contribute more money to your Individual Retirement Account (IRA) than the IRS allows in a given year. This can happen if you make a mistake when calculating your contribution, or if you change your mind about how much you want to contribute. If you contribute more than the […]
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 […]
An IRA is a tax-deferred retirement account for individuals. Depending on the type of IRA you choose, contributions could be tax-deductible or withdrawals could be tax-free. There are three main IRAs that you could consider rolling over into a solo 401k. There’s also the Roth IRA, which allows Roth contributions: you make contributions with after-tax dollars, […]
KEY SIMILARITIES KEY DIFFERENCES A rollover is the movement of funds and/or assets from one retirement account to another. Usually, it involves moving from one type of retirement account into a different type of retirement account – for example, rolling over your 401k into an IRA account. There are two types of rollovers: direct and […]
OVERVIEW There are three different ways to fund a retirement account. Contributions, transfers, and rollovers. While transfers and rollovers sound a lot like the same thing, the IRS classifies them as two different events, and there are separate rules and regulations around them. This guide will outline the main differences between a rollover and a transfer […]
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 […]
