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A 401(k) Plan Allows Workers To Save For Retirement While Deferring Income Taxes On Saved Money Or Earnings Until Withdrawal. Welcome To 401kGuide.us. This Free Information Resource Will Help You Make Informed Decisions About Your 401(k) Options. As
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Watch Out! 7 Common 401(k) Mistakes You Must Avoid
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Revealed: Which Is Really Better--Roth IRA Or 401(k)?!
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3 Insider Secrets To Help Get The Most Out Of Your 401(k)
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What Happens To My 401(k) Account If I Quit Or Get Fired?
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Everything You Must Know About 401k, Roth IRA, 401k Rollover, 401k Information, Individual Retirement Account And 401k Plans.
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How To Buy Real Estate With Your IRA
Use Your Self-Directed IRA, Roth Or 401(K) Plan + Loans To Buy Investment Property.
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Tax-Free Real Estate Investing
Insider Secrets On How To Make Tax Free Profits In Real Estate Using Your IRA. Create Your Own Private Bank.
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401k Plans, Roth Ira News |
BrightScope Ranks San Diego Area-Based Companies With 401k Plans Containing More Than $100M in Assets SAN DIEGO, CA-- - BrightScope , a leading provider of independent financial information and investment research, today announced its second annual list of San Diego area-based companies with 401k plans ... 401k Rollover Retirement Income Expert Cathy DeWitt Dunn Cautions Employees to Understand Their 401K Rollover Options ... DALLAS, April 23, 2012 /PRNewswire/ --Â Cathy DeWitt Dunn, president of the Dallas Fort Worth-based financial services company, DeWitt & Dunn, LLC, and host of the syndicated radio show, Safe Money Talk ... 5 bulletproof 401k funds These funds have a proven record of success in helping investors with a variety of investment strategies meet their retirement goals.
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The New Roth 401k Plan
Author: Stuart Simpson
There’s a new retirement plan soon to be available. It’s called a Roth 401k. President Bush brought this about in his 2001 tax cuts. This is a combination of two retirement funds – a 401k and a Roth IRA. But what does it mean?
Your 401k plan is pretax money set aside to grow as an investment. Your employer takes pretax money out of your check and allows you to direct the funds usually into mutual funds. 401k’s have another advantage – since it’s pretax money you take out of your check, your net pay is lowered, reducing the amount of taxes you pay. When you retire, then you draw out of your 401k what little you need and pay the taxes on it. When you retire, your income stream is gone, and so is your tax bracket. As you draw out your money from your 401k, then you hopefully enter a relatively low tax bracket and pay little on the proceeds.
Enter the Roth IRA. A Roth IRA is funded by after tax dollars. Anything put into this account will never be taxed again. You can open up your own Roth IRA account anywhere – even at a bank. Since the money is after tax, its just like you cashed your paycheck and are going shopping. The good news is you are taxed once on the front end, and then later when you remove the money, you won’t owe the government any taxes.
When you combine the two, you should be able to invest into your 401k with after tax dollars, and as it grows, and you retire, when you remove the funds, they will not be taxed. 31% of employers who have 401k plans say they plan to add this option for their employees. The bad news – your employer doesn’t have to add this as option.
Why wouldn’t I just go open my own Roth IRA and direct the funds in a mutual fund? Good question. The real advantage to the average worker is that money is taken out of your check and you won’t see the money. Makes it easier to invest. You don’t see the money as it’s taken out before they deposit your check. The #1 rule is to put money into your 401k no matter what options they give you. This new Roth 401k will start January 1st, 2006.
About the Author: Stuart Simpson http://www.401k-review.com/
Source: www.isnare.com
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A Quick Note
From The Publisher...
If you like the article above, you may be
interested in the following article which is also related to 401k Plans...
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How to Maximize Your 401k Mutual Fund Returns |
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When it comes to 401k's there is an overabundance of sad stories. Here is one that at least has a happy ending—and it's getting happier all the time.
Last year (in 2002) a friend of mine—let’s call him Jack—phoned and asked if I could help him with his 401k. Jack works for a large company as Senior VP of lending and is financially pretty astute. However, when it came to his 401k mutual fund decisions, he had repeatedly made the same mistake most people were making. As a result, he saw his account drop in value substantially.
At the time we were in the midst of the 2000 bear market, which showed no sign of letting up. Jack had purchased into a Lifestyle fund because someone recommended it. By the time he finally bailed out, it cost him dearly. However, he continued to make the same mistake by reinvesting.
He checked with the 401k representative and subsequently switched to a variety of mutual funds ranging from World Stock to Domestic Hybrids, Large and Small Value as well... |
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