The Self-Directed 401k and its Essential Factors

Goodbye to the conventional thinking of our elders that one employment must last forever, which is basically not true at all! Who doesn’t want to enjoy the security of tenure, right? But things don’t easily fall into their right places. In fact, it is a tedious task to locate a generous employer who will feed you with the benefits that you crave for. Nevertheless, it is but common for the workers to shift into other fields, do job hopping, move Continue article...

Is a ROTH 401(K) Your Best Option?

Are you planning for your own future? How many years are you counting before you retire? Are you worried about your retirement savings plan? Have you selected the right plan for you? Or are you still undecided on what would be the best plan for your retirement savings? Let’s review some information about these questions and maybe later after describing and discussing all the information, you may be able to decide what to do today.

I’m sure you have heard about Continue article...

How Your 401K Works to Your Benefit

Many of the younger generation don’t often put much thought to how they will live after they retire. After all, it seems as if it is eons away. But retirement creeps up on you faster than you realize and proper financial planning in your younger years will be a key factor to the lifestyle you will be able to lead.

Many employers offer their employees a 401K plan when they are hired. Often it is not something you think about, but Continue article...

Does the 401(k) max contribution limit include the employer match?

There is a maximum limit on the total yearly employee pre-tax salary deferral. The limit is $15,500 for the year 2007, and will remain $15,500 for the year 2008. Employees who are 50 years old or over at any time during the year are now allowed additional pre-tax “catch up” contributions of up to $5,000 for 2007 and 2008.

For future years, the limit will be indexed for inflation, increasing in increments of $500. In eligible plans, employees can elect Continue article...

Can I rollover my 401k while still employed?

In recent conversations, the question has come up as to whether you call rollover your 401k to a traditional IRA while still employed at the sponsoring employer. There seems to be some confusion about this and rumors of new laws that allow it.

The short answer to the question is, no. By law, you can not withdraw 401k contributions, that is, pre-tax salary deferrals, before severance, plan termination, turning 59 1/2, death, disability or hardship (and you can’t roll Continue article...