Taking advantage of the mega backdoor Roth IRA can accelerate any employee’s retirement savings. However, not all employees are able to take advantage of this option. It entirely depends on how your company’s 401k plan is set up. In order for a company’s employees to be able to get a mega backdoor Roth IRA, it needs to […]
The top companies in the world offer generous 401k employer matches in order to attract top talent and to encourage their employees to participate in their 401k plan. What is 401k employer matching? An employer match is an additional contribution made by an employer towards an employee’s 401k plan. Many employees consider it as free […]
OVERVIEW If your company provides a 401k plan, there’s a high chance that they also offer employer matching. A study by the Plan Sponsor Council of America showed that 98% of companies that offer a 401k also provide employer matching for their employees. In employer matched 401k plans, employers will contribute to an employee’s 401k, up […]
While regular IRAs only let you invest in traditional assets like stocks, bonds, mutual funds, and ETFs, self-Directed IRAs (SDIRAs) allow you to hold alternative investments in your Roth or traditional IRA, such as real estate, private equity, cryptocurrencies, and precious metals. Self-directed IRAs are special types of IRAs. While they follow the same rules, […]
Overview A solo 401k has a contribution limit of $69,000 for 2024. If you’re 50 years of age or older, you can contribute an additional $7,500 in catch up contributions. Solo 401k contributions are broken down by employer and employee: Employee contributions: You can contribute 100% of your compensation up to a maximum of $23,000 […]
OVERVIEW What is a Roth solo 401k? When you open a solo 401k plan, many plan providers will give you two different accounts: A traditional (pre-tax) solo 401k account and a Roth (post-tax) solo 401k account. The traditional solo 401k gives you a tax break when you contribute, and the Roth solo 401k gives you […]
OVERVIEW An individual retirement account (IRA) can help self-employed individuals save for their retirement. While you’re allowed to have an IRA in addition to a company 401k, it’s especially popular for people who don’t have access to an employer-sponsored retirement plan. There are many types of IRAs, but the most common ones are the traditional IRA and Roth […]
OVERVIEW What is a Roth IRA? A Roth IRA is a type of individual retirement account (IRA) that gives special tax advantages in retirement. Your contributions are made with after-tax dollars, money you’ve already paid income taxes on. You don’t get a tax-deduction when you contribute, but your withdrawals in retirement are completely tax-free. Comparatively, a traditional […]
A Custodial IRA (Individual Retirement Account) is a type of tax-advantaged retirement savings account established for a minor by a custodian, who is usually a parent, guardian, or another responsible adult. The purpose of a custodial IRA is to help minors save for their future retirement or education expenses while benefiting from the tax advantages […]
