Category: General Retirement
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Social Security Retirement Income: a Primer | What role does Social Security play in your retirement income strategy?
As you near retirement, it’s likely you’ll have many questions about Social Security. How much will your retirement benefit be? When should you apply? Will earnings from a part-time job affect your benefit? Social Security has always been a major source of income for many retirees, but with fewer companies offering traditional pensions, Social Security…
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Can you access your work-based retirement plan money in an emergency?
In most cases, taking money out of a 401(k) or similar retirement savings plan prior to age 59½ while you’re still working will result in income taxes and a 10% early-distribution penalty. However, you may be able to access your plan money in an emergency — in some cases, without paying the penalty — through…
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The Individual 401(k)
If you’re self-employed or own a small business, you’ve probably considered establishing a retirement plan. If you’ve done your homework, you likely know about simplified employee pensions (SEPs) and savings incentive match plans for employees (SIMPLE) IRA plans. These plans typically appeal to small business owners because they’re relatively straightforward and inexpensive to administer. What…
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The Roth 401(k)
Employers can offer 401(k) plan participants the opportunity to make Roth 401(k) contributions. If you’re lucky enough to work for an employer who offers this option, Roth contributions could play an important role in maximizing your retirement income. What is a Roth 401(k)? A Roth 401(k) is simply a traditional 401(k) plan that accepts Roth…
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Required Minimum Distributions
What are required minimum distributions (RMDs)? Required minimum distributions, often referred to as RMDs or minimum required distributions, are amounts that the federal government requires you to withdraw annually from traditional IRAs and work-based retirement plans after you reach age 73 (75 for those who reach age 73 after December 31, 2032; prior to December…
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I teach at a school that offers a 403(b) plan. Is this type of plan a good way to save for retirement?
In general, yes. Also known as a tax-sheltered annuity, a 403(b) plan is an employer-sponsored plan designed for employees of certain tax-exempt organizations (e.g., hospitals, churches, charities, and public schools) to invest for their retirement. Typically, the employer purchases annuity contracts or sets up custodial accounts for eligible employees who choose to participate. A 403(b) plan…
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401(k) Plans: The Basics
Retirement plans established under Section 401(k) of the Internal Revenue Code, commonly referred to as “401(k) plans,” are one of the most popular types of employer-sponsored retirement plans. What is a 401(k) plan? A 401(k) plan is an employer-sponsored retirement savings plan that offers significant tax benefits while helping you plan for the future. You…
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Health Insurance in Retirement
At any age, health care is a priority. When you retire, however, you will probably focus more on health care than ever before. Staying healthy is your goal, and this can mean more visits to the doctor for preventive tests and routine checkups. There’s also a chance that your health will decline as you grow…
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2026 IRA and Retirement Plan Limits
Many IRA and retirement plan limits are indexed for inflation each year. Several of these key numbers have increased once again for 2026. How much can you save in an IRA? The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2026 will be $7,500 (or 100% of your earned…
