Category: 401K
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2008 Highly Compensated Employee Limits
For 2008, the Highly Compensated Employee income level was increased from $100,000 to $105,000. If your income is above $105,000 then you are considered “highly compensated” for the purposes of retirement plans. If you are curious as to the rules regarding HCE’s, please read this page that discusses what a highly compensated employee means.
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Rolling Over Your 401(k) To Vanguard
I’ve rolled over two 401(k)’s into a Rollover IRA at Vanguard and both times the process was absolutely painless. If you’re thinking about taking advantage of Vanguard’s low fee index funds, and other mutual funds, then I think that rolling over a 401(k) is a great way to do it. The process is pretty easy…
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Diversification Across 401(k) Portfolios
The latest Yahoo Finance article on retirement, courtesy of TheStreet, is one in which they discuss managing two 401(k)s when both members of a marriage are working. The article itself is merely an extension on the discussion of one’s own diversification in a single 401(k) but I think there are some points that it could’ve…
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Defined Benefit vs Defined Contribution Plan
In all the discussion about retirement plans, pensions, 401(k)s, IRAs, you may have heard the term “defined-benefit” and “defined-contribution” plan thrown around and wondered what they meant. Both are employer-sponsored retirement plan types but have slight different characteristics. Defined-Benefit Plan A defined benefit plan, often called a “qualified benefit plan” or “non-qualified benefit plan,” is…
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401(k) Always Taxed Short Term Capital Gains
401(k)’s are a great retirement investment vehicle. The two primary benefits of a 401(k) is that your employer will often give you some sort of small percentage match on your contribution and you get an immediate tax deduction for the amount you contribute. When your employer kicks in an employer match, that’s like automatic appreciation.…
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Reconsider Rolling A 401(k) Into Another 401(k)
I’m a fan of flexibility and I like having my options as wide open as possible. That’s why I don’t like rolling over a 401(k) into another 401(k). After leaving my first job, I immediately rolled my 401(k) into a Vanguard mutual fund account. I felt that Vanguard would give me plenty of options while…
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401k Rollover Tip: Don’t Ever Cash Out
When you leave a job, you will be confronted with a decision. If you had a 401k, you will have to decide whether you will keep it with the current plan administrator, roll it over into your new employer (if they offer a 401k), roll it over into a Traditional IRA, or cash it out.…
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How To Become A Millionaire: Retirement Is Key
On my mainstream personal finance blog, Blueprint for Financial Prosperity, I penned an article today called How To Become A Millionaire (In 6 Easy Steps!) that begins with a two steps focused solely on retirement. For the retirement saving savvy out there, these two steps are obvious and a staple of retirement planning. Step 1…
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Retirement Saving Without a 401(k)
Many working Americans don’t have access to a 401(k). I don’t mean their employer doesn’t offer them any matching funds, I mean they flat out do not have the ability to contribute funds to a 401(k). Many of these employers are either too small, too disorganized, or otherwise find itself unable to stand up a…