Category: 401K
-
You Can’t Borrow From An IRA
The question of whether or not you should rollover an IRA comes up a lot and my general rule of thumb has been that rolling over a 401(k) to an IRA is usually a good thing. There are exceptions to the rule but in general it’s always better to go with a low cost mutual…
-
Don’t Cash Out Your 401(k)
When I read the statistics from Vanguard, in their How America Saves 2008 report, I was astounded by the statistic that 60% of Americans who change jobs will cash out their 401(k). That’s right, for every ten people that switch jobs, six will take all the money they’ve diligently saved into their 401(k) accounts and…
-
Landmark 401(k) Supreme Court Case: LaRue v. DeWolff Boberg
The LaRue v. DeWolff Boberg case was Supreme Court case in which James LaRue sued his former employer for failing to execute his repeated instructions to move his assets to more conservative investments. Because of this failure to respond to repeated instructions, he lost $150,000 in his 401(k) plan and he wanted to be compensated…
-
Retirement Assets After A Layoff
Being fired isn’t something you want to think about but with the economy in the sad state that it’s in, you should prepare for the worst and hope for the best. It’s important to find out what could happen to your retirement assets in the event you are laid off and fortunately, in most scenarios,…
-
Don’t Cash Out Your 401(k)
A recent survey from Bank of America found that 18% of respondents admitted to withdrawing money from their retirement accounts early to help pay for credit card debt, mortgage payments, and job losses. It’s a difficult time for everyone but cashing out your 401(k) should be seen as a last resort because it is so…
-
House Suspends Required Minimum Distributions for 2009
The House of Representatives recently passed the Worker, Retiree and Employer Recovery Act (H.R. 7327) and has come through on a move that will likely make retirees smile a little in our down economy (and hugely down stock market). The act essentially lets retirees suspend requirement minimum distributions from all defined-contributions plans, including but not…
-
Class Action Lawsuit over Excessive Hidden 401K Fees
Laura Rowley wrote an article two weeks ago discussing a pending lawsuit in which employers allowed 401k plan admins and third party providers to charge “excessive, hidden fees” in their 401k offerings. Specifically, this was was a breach of their fiduciary duty under ERISA, the Employee REtirement Income Security Act. For some cases, the admins…
-
Find the Cheapest Effective Funds
Not all 401(k) programs are created equal, that’s a fact I’ve known for quite some time and one cemented after reviewing The Smartest 401(k) Book You?ll Ever Read by Daniel Solin this past weekend. While the idea that 401(k) plan administrators may pay kickbacks to companies turns your stomach, the reality is that it occurs…
-
Proposed Improved 401(k) Disclosure Laws
Every quarter, I receive disclosure forms from my employer’s 401(k) plans. They discuss my current account balance, my gains and my losses, the fees I’m paying, and a broad look across all the funds available to me. It’s a good quarterly snapshot and one that I felt was adequate. I had online access to my…