Health Savings Accounts (HSA)–often coupled with a high-deductible plan–have become quite popular with employers in recent years. In many places they’ve replaced traditional employer insurance offerings as they pass more healthcare costs on to the employee. They can be beneficial to the employees to as they can take the HSA with them if they leave for a new job and can use it as a place to save money for health expenses as retirement. In fact, if you start saving in an HSA early in your career and invest properly (yes, you can invest a chunk of your HSA) you Continue reading The CARES Act and Your HSA
It’s tough times out there for many Americans. We’re seeing record numbers of people filing for unemployment. For those who have lost jobs, it can be scary to think about where the finances will come from to continue paying things such as rent, mortgages, grocery bills, etc. Thus, during these times, it can be tempting to tap into retirement savings, especially if you have managed to build up a decent-sized nest egg. While I strongly, strongly discourage you from using your retirement savings to get you through these tough times, I realize that it may really be the only option Continue reading To Tap or Not to Tap Your Retirement Savings?
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27. It’s a massive relief package designed to help Americans get through these difficult economic and financial times. Yes, this is the legislation that also includes the one-time payments from the government for those below a certain annual salary. While most of the reporting on the CARES Act tends to focus on helping those of working age who find themselves without a job, it does have some advantages for retirees. First off, many retirees will be eligible to receive the highlight of the legislation–those Continue reading Retirement Accounts and Government Coronavirus Relief
We are less than a month away from 2020, which means you need to start thinking about your future retirement account contributions for the upcoming 12 month period. If you have more than one retirement account, this may include deciding when and how much you will contribute to each account. For example, if you have a traditional IRA and plan to max out your contributions, will you be making the contribution in one big lump sum or do you plan to spread that contribution out throughout the year in smaller sums. If you have a retirement account with your employer, Continue reading Thinking About Next Year’s Contributions
If you aren’t participating in your company’s retirement plan (i.e. a 401(k)), then you are really missing out. Not only is it a great way to save for retirement, there may be numerous perks and benefits that you may be giving up. For one, if your company offers contributing matching, you could be leaving extra money on the table. Even if the match is only a small amount–such as 3%–that’s still better than nothing and can go a long way over a long period. Being an active participant in an employer retirement plan can also potentially allow you to deduct Continue reading Are You an Active Participant in Your Employer’s Retirement Plan?
The IRS recently announced retirement account contribution limits for 2020. The quick take away: 401(k) contribution limits are going up, IRA contribution limits stay the same, and just about all other retirement account contribution limits are also going up. Per usual, the increases are minimal. The 401(k) contribution limit is up $500 to $19,500, while the catch-up contributions will increase to $6,500 from $6,000 last year. IRA contributions remain topped out at $6,000 with a $1,000 catch-up contribution for those over 50. Contribution limits have been increasing just about every year in recent memory, so these should really come as Continue reading 2020 Retirement Limits: Some Things Go Up, Some Stay the Same
If you have an employer sponsored retirement plan, then you’re probably familiar with the terms “vested” or “vesting.” These terms mean that the amount that falls into that category is yours and cannot be taken away. Many employer plans have vesting rules and eventually allows the money put into that retirement account to become vested. Complete vesting usually does not happen right away, but rather is gradual as most employer plans have some form of vesting schedule. Often times you have to work a certain number of years at one business or company to become fully vested. Other times, you Continue reading Are You Vested?
If you are a freelancer or small business owner, you probably have a lot to worry about when it comes to your work or business. You have expenses to track, work to do, clients to satisfy, and maybe an employee or two to oversee. With all that, it can be easy to forget about saving for retirement. Not only that, but you don’t have the reminders regarding opening a retirement account or automatic retirement account enrollment that are standards in larger business and corporations. Thus, it’s imperative that you take it upon yourself to think about and take the required Continue reading Small Business Owner? Don’t Forgo Retirement Saving
When it comes to building up a nest egg or retirement savings, the stock market can be a great way to meet your financial goals. This is especially true if you invest while you are young and do so in a reasonable manner. If you invest early in your career and let that money grow over the course of three or four decades, you can find yourself with a pretty hefty chunk of money. Plus, it’s really easy as you don’t really have to do much aside from track your investments from time to time. However, many Americans try to Continue reading Who’s Afraid of the Big Bad Stock Market?
Life can be unpredictable. Do you know how you will handle that unpredictability? For example, if you were faced with a sudden, substantial medical bill or your home was damaged in a storm, do you know where the money to pay for those expenses will come from? If you’re financially savvy/smart, you probably have an emergency fund set aside to help with those expenses. However, if you don’t have such money set aside or the costs are more than your emergency fund, you may need to find other financial resources to tap into. While I strongly discourage it and will Continue reading Knowing How Hardship Withdrawals Work