Retirement

IRAs and brokerage accounts can play an important role in a retirement strategy. While there are some similarities between these types of savings vehicles, there are many important distinctions.

When done correctly, IRA to 401(k) reverse rollovers are permissible by the IRS, as long as the employer’s plan allows for it.

Saving for retirement early vs later is crucial because a long timeline lets investors take advantage of benefits like compound interest—earning interest on interest over time.

A 401(k) is a retirement savings vehicle offered by many employers. It offers tax advantages and investment opportunities and has higher contribution limits than other retirement accounts.

Facing a costly hardship may make investors feel inclined to take out money from their 401(k) before they turn 59 ½, the age the IRS begins allowing withdrawals, penalty-free.

Many employees use 401(k) plans to save for retirement, however, there will be taxes on those retirement savings. Different types of 401(k)s offer different advantages.

A healthy 401(k) account can build a strong foundation of retirement savings, which can support future retirees for decades to come.

There are some important distinctions between 401(k)s and IRAs, that investors consider to learn how each account type would impact their retirement savings strategy.

A withdrawal penalty is a fee imposed when an account holder pulls money out of certain types of savings vehicles ahead of schedule.

Some retirement accounts are offered through the workplace, while others will need to be opened individually; in many cases, future retirees can own (and contribute to) more than one type of account.

There are many types of IRAs to choose from when developing a retirement strategy. Although there are similarities between these savings vehicles, each has its own rules.

An investor’s success can be influenced by factors such as an employer-contribution match, low 401(k) fund fees, and investment options.

Learn about the benefits of an IRA account, a retirement savings tool that can offer additional investment and growth opportunities for an investor's future.

IRAs and brokerage accounts can play an important role in a retirement strategy. While there are some similarities between both types of savings vehicles, there are many important distinctions.

Saving early for retirement is important for many investors, because sources like Social Security usually aren’t close to enough. Investors can consider their current standard of living and note that experts say most people need 80% of that pre-retirement income.

Retiring early does require some solid financial planning, such as determining how to live in retirement, creating a retirement budget, and altering spending. Those who want to retire early need to start planning as early as possible.

Enacted on January 1, 2020, by then-president Donald Trump, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 is one of the largest retirement reforms of this generation.

The IRS defines a beneficiary as the person or entity who is chosen to receive the IRA funds when the original account holder passes away.

A required minimum distribution is the annual amount that must be withdrawn from certain types of retirement plans starting in the year the account holder turns 72.

Vesting is the term used to describe a process in which a person gains possession of an asset, property or some other good or benefit.

Catch-up contributions are available for a few different types of retirement savings accounts, but the catch-up limit and the overall limit are different depending on the kind of account.

How much investors need to retire at 65 will vary by individual. Knowing living expenses, retirement plan options, and how to track progress may help them reach their savings goals.

IRAs are common savings tools for retirement. Opening one is a fairly straightforward process, similar to setting up a brokerage account.

The contribution limits for 401(k) plans in 2021 were largely unchanged, although what an employer and employee can contribute in combination has been revised.

A 401(k) rollover is the process by which an account holder transfers funds from one 401(k) to another 401(k) account or an IRA.

A solo 401(k), also called a self-employed 401(k) is a tax-advantaged retirement plan with high contribution limits made available for self-employed individuals.

The maximum IRA contribution limit for 2021 depends on investors’ age as well as income, and different rules apply to traditional and Roth IRAs.

A SEP IRA is a type of tax-advantaged retirement account that is available to self-employed people or small business owners and their employees.

A traditional IRA, lets you contribute money towards retirement with pre-tax income. That means you don’t have to pay taxes on eligible contributions in the year you make them.

A Roth IRA is a retirement savings account that allows you to contribute money after you’ve paid tax on it, not before. Learn more about Roth IRAs and how they work.

Annuities are similar to individual retirement plans in that bought by people who are planning for retirement and want a regular source of income after they stop working.

Learning how to invest for retirement can feel daunting, but you don’t need to know everything to create an effective retirement investment plan.

With a traditional IRA, you don’t pay taxes on the money you contribute each month. Rather, you pay taxes on that money years later when you withdraw.

Tax-deferred accounts were created to incentivize saving for retirement. 401(k)s and IRAs are two common types of tax-deferred accounts.

Retirement planning tools can include online calculators, software, or other programs that can help you take control of your retirement savings.