Category: 401(k)

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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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    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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    Can I still have a traditional IRA if I contribute to my 401(k) plan at work?

    Yes. Anyone with earned income can open and contribute to a traditional IRA. The contribution limit is $7,500 for 2026 (up from $7,000 in 2025), plus an additional “catch-up” contribution of $1,100 if you’re 50 or older in 2026 (up from $1,000 in 2025). However, you may not be able to deduct your IRA contributions…

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    Differences Between a Roth 401(k) and a Roth IRA

    You can have both a Roth 401(k) account and a Roth IRA account. The contribution limits are separate.    Roth 401(k)  Roth IRA  Maximum contribution (2025)  Lesser of $23,500 or 100% of compensation  Lesser of $7,000 or 100% of earned income  Catch-up contribution (2025)  $7,500 for age 50 to 59 and 64 and older; $11,250…

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    Borrowing or Withdrawing Money from Your 401(k) Plan

    If you have a 401(k) plan at work and need some cash, you might be tempted to borrow or withdraw money from it. But keep in mind that the purpose of a 401(k) is to save for retirement. Take money out of it now, and you’ll risk running out of money during retirement. You may also…