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Tag: 401k

Top House tax writer suggests 401(k) changes could still happen, contradicting Trump

Top House tax writer suggests 401(k) changes could still happen, contradicting Trump

Finance
The top House tax writer on Wednesday signaled that Congress could still propose changes to a popular retirement savings plan in its tax bill, contradicting an assurance made by President Donald Trump. At a Christian Science Monitor event, Rep. Kevin Brady said Republicans are "exploring a number of ideas" to "create incentives for Americans to save more and save sooner." The House is "continuing discussions with the president" in that area, the House Ways and Means Committee chairman said. "I do have a worry. Not enough Americans are saving," Brady said at a separate Yahoo Finance conference later in the day. Brady said Republicans have "asked for ideas how Americans (can) save more and save earlier in their lives." On Monday, Trump emphatically tweeted that "there will be NO change to yo...
401(k) contribution limit will rise to $18,500 next year

401(k) contribution limit will rise to $18,500 next year

Finance
Planning young: a retirement roadmapYou'll be allowed to contribute an extra $ 500 to your 401(k) next year. The government will raise the contribution limit to $ 18,500 from $ 18,000 in 2018. It reassesses the limit annually. A 401(k) is a good way to save for retirement because your money grows tax-free. But there's a limit on how much you can save each year and when you can withdraw the funds. If your employer doesn't offer a 401(k), you can contribute to an IRA or Roth IRA to save for retirement. They have tax advantages and contribution limits, too. There's also a restriction on who can use a Roth IRA based on income. The limit on how much you can contribute to your IRA or Roth IRA will remain unchanged at $ 5,500 next year. But the income eligibility for a Roth IRA will rise. Here...
IRS makes it easier for Harvey victims to tap 401(k) money for rebuilding

IRS makes it easier for Harvey victims to tap 401(k) money for rebuilding

Finance
While taking money early from a workplace retirement plan is generally a no-no, victims of Hurricane Harvey now have that option.The Internal Revenue Service announced Wednesday that 401(k) plans and similar plans may permit participants to take loans against their accounts or make hardship withdrawals if they or family members have been affected by the flooding and destruction from Hurricane Harvey.This means that even if you live outside the disaster area, you can tap your own 401(k) plan to assist a family member in the affected areas. The normal 10 percent early withdrawal penalty for those under age 59½ (with a few exceptions) will still apply and you'll owe income taxes on the money as well.And typically, hardship distributions also come with a six-month ban on new contributions. The
What to do with your 401(k) when you switch jobs

What to do with your 401(k) when you switch jobs

Finance
As you start a new job, don't forget about your old 401(k).How you choose to juggle accounts from former workplaces could make a big difference in how much you'll ultimately have at retirement, said Alison Borland, executive vice president for defined contribution solutions at benefits administrator Alight Solutions. It's important to understand your options and take time to ask questions and figure out your best strategy."The long-term implications can be significant, financially," she said. "There's a lot at stake."Broadly speaking, you have three options for a retirement account from a former workplace:1) Leave it where it is.2) Roll it into your new employer's plan.3) Roll it into an individual retirement account.(Technically, you have a fourth option: Cash out the account. But that's ...