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?
Unless you have a job that pays extreme well, chances are you will take on some debt at some point. That could be in the form of a mortgage or maybe it’s student loans. Regardless of what type of debt you take on, you will need to pay it off, which is where the risk lies. If you default on those loans, the creditor will come after you and, depending on the terms of the loan, that can be quite rough. Keep in mind that many creditors don’t really care about your situation, they just want their money and will Continue reading Is Your Retirement Nest Egg Safe From Creditors?
There’s a good chance that you’re familiar with what a Health Savings Account (HSA) is. You may not have one, but you may have considered opening one at some point in recent years as it has become a common offering by many employers. If you are unfamiliar with HSAs, they are tax-free accounts that can be used to pay for qualified medical expenses and are used in conjunction with high deductible health plans. Distributions used to pay to medical expenses are tax free and there are no income limits for contributions. Furthermore, HSAs can be a great long-term investment as Continue reading Going Up? 2020 HSA Limit Increases Announced
You’re probably aware of the “still working” exception found in certain employer-sponsored retirement plans. These exceptions allow people to delay taking required minimum distributions (RMDs) from your retirement account if you are still working at age 70 1/2. Taking advantage of still working exceptions can extend your retirement savings by allowing you to delay tapping into your nest egg. However, do you know what it means to be “still working?” If you don’t, then you’re in good company, because the IRS doesn’t have a definition either. Don’t worry, though, as that isn’t as scary as it seems. Chances are if Continue reading What Does “Still Working” Mean?
Most likely, if you’ve ever left an employer (i.e. getting laid off, retiring, taking another job, etc.), you’ve probably thought about rolling over your your 401(k)–if you have one–into an IRA. While this makes sense in the vast majority of such situations, it isn’t an automatic for every such situation. There may be times when you leave an employer and decide that it’s best not to do a rollover of your 401(k). There are various reasons as to why that might be. For example, if you are happy with your former employer’s plan and like the options offered, then you Continue reading No Need to Rush a 401(k) Rollover
Are you nearing the age where you have to begin taking required minimum distributions (RMDs), but are planning on working well past that age and want to put off taking those RMDs? You can do so by taking advantage of a “still working” exception. However, it’s important that you understand a few key aspects of the exception. First off, the still working exception only applies to company plans and not to any personal IRAs or retirement plans. This means that if you are still working, you can’t delay RMDs from non-employer plans. Also, the still working exception only applies to Continue reading Taking Advantage of a “Still Working” Exception