Since nearly 80% of U.S. full-time workers have access to an employer-sponsored retirement savings plan, chances are that you’ll eventually be eligible to enroll in a 401(k) from your employer. The more employees your company has on payroll, the higher your chances of access to a 401(k).
What are you saving for?
Retirement lasts one-quarter of your life. That means saving for it can feel like a big task. Whether you’re just getting started or you’re well on your way, we’re here to help make it easier to navigate the world of investing, retirement, and 401(k)s.
Since one of the immediate tax advantages of owning a 401(k) is the 401(k) deductions, you may be wondering what 401(k) tax form you’ll need to attach to your return and how to report any 401(k)-related numbers on your 1040. Here we'll review different scenarios for 401(k) plan holders and the necessary action items for each one of them.
Whether to pay off debt first or contribute to a 401(k) is an important question to evaluate for those with debt, but still worried about saving for retirement. There are many considerations when pondering this question, such as how much money to direct towards your debt and how much towards retirement, and when!
While average fees for 401(k) plans don’t sound like much, they can eat away at your retirement savings and force you to work longer. Understand where typical 401(k) fees come from and how much plan participants can expect to pay.
Saving & investing
A 401(k) is a popular retirement account that allows eligible employees to save money and decrease their federal tax obligations. It is an employer-sponsored tax-advantaged plan. Individuals can contribute "pre-tax" dollars, or income that will be exempt from income tax, so it can grow in the account untaxed until the individual reaches retirement age. Congress initially created this plan structure to help people save for retirement.
It’s your last day on the job. Depending on the situation, that may mean you’re celebrating; or, it may mean you’re not feeling too great. Regardless of whether it’s a good or bad situation, there are some important HR-related things you need to have in order before you walk out your employer’s door on your final day of work.
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