401k | Common News Update

Feb152021 by adminNo Comments

Why the 401(k) won’t fix the U.S. retirement crisis

Finance

Kyla Ernst-Alper is an aerialist in New York City. She's never had an employer that offered her a 401(k) retirement plan in more than two decades of performing.Giles ClementKyla Ernst-Alper, a 38-year-old aerial performer in New York City, has never had a 401(k) retirement plan.She holds multiple jobs at once to support herself, and none of them offer her any retirement options. She socks away what she can in an individual retirement account, but those savings are not always consistent. That's due to her line of work, which was especially hard hit when live shows were canceled because of the public health crisis."Before the pandemic, people in my community were barely paying their bills," Ernst-Alper said. "You're lucky if you're able to save money."The 401(k) is framed today as the main w...

Nov172020 by adminNo Comments

Here’s how much your company’s 401(k) match could be worth in retirement

Finance

Getty ImagesIf you're working and have access to a 401(k) plan, socking away at least enough money to grab the company's matching contribution is key, experts say.Yet how much is that extra cash worth?Most companies that offer these workplace retirement plans will match your contributions up to a certain amount. Depending on your salary and the matching formula used, that could translate into thousands of extra dollars going toward your nest egg every year. And after leaving it there to grow? Your future self may thank you.More from Personal Finance:Here's where to invest your money in 2021, advisors sayWhat Biden's presidency may mean for consumer protectionsYou’re running out of time to use these tax-advantaged funds"It's so important to take every bit of money your company wants to give...

Nov112020 by adminNo Comments

Typical person yanked $12,000 from 401(k) during coronavirus pandemic: Vanguard

Finance

Jamie Grill | Blend Images | Getty ImagesRetirement savers appear to be taking advantage of relaxed rules around 401(k) withdrawals during the coronavirus pandemic.The typical 401(k) investor pulled $ 12,000 from their account in the form of a "coronavirus-related distribution," according to a new Vanguard analysis of its client data.This figure represents the median withdrawal — in other words, the amount right in the middle of all withdrawal amounts.More from Personal Finance:This risk threatens retirees' nest eggsHere's a decade-by-decade guide to retirement planningHere's what's ahead for President-elect Biden's tax planCoronavirus-related distributions are a new type of retirement withdrawal, enacted in March by the federal CARES Act to help cash-strapped individuals during the econo...

Nov52020 by adminNo Comments

Some 401(k) investors moved to fixed income this week and may have missed rally

Finance

As the U.S. stock market is now on track for its best week since April, some 401(k) plan participants started the week making more trades than usual within their retirement savings accounts.As a result, they may have missed out on this post-election rally. The amount of daily trading in 401(k) plans — traditionally seen as a place to buy and hold investments — increased significantly at the start of the week after a tumultuous few days for the S&P 500 index. On Monday, 401(k) investors who made trades mostly moved money from equities to fixed income. Yet a post-Election Day rally has put the major stock market averages on pace for their biggest weekly gain in about seven months. Investment activity in 401(k) plans was more than twice the normal daily average (or about 0.06% o...

Jun202020 by adminNo Comments

IRS expands eligibility to take up to a $100,000 coronavirus-related withdrawal from IRA, 401(k)

Finance

More people will be eligible to take a $ 100,000 coronavirus-related distribution from their retirement account.The IRS released guidance on Friday which details new rules for individuals affected by Covid-19 to take a withdrawal from a 401(k) plan or an individual retirement account.The CARES Act allows savers to take coronavirus-related distributions – emergency withdrawals – of up to $ 100,000 from their retirement plans and IRAs. And those who are under age 59½ can access the money without the usual 10% early withdrawal penalty.These individuals can also spread the income tax from the withdrawal over three years. However, if they repay the money into the account within that time periods, they can avoid the tax.The new guidance expands eligibility. Initially it applied just to people wh...