Why Tapping Into Your 401 k Early Can Sting: related news

Why Tapping Into Your 401(k) Early Can Sting

For young adults with high-interest debt and few other options, tapping into retirement funds can be tempting. However, there's one major reason why it's a bad idea: It can cost a lot more than it saves.

Why Tapping Your 401(k) Early Can Sting

For young adults with high-interest debt and few other options, tapping into retirement funds can be tempting. However, there's one major reason why it's a bad idea: It can cost a lot more than it saves.

Rules Push Workers into 401(k)s

New employees who don't enroll in their company's 401(k) plan next year may find themselves saving for retirement anyway. A new law making it easier for companies to automatically enroll their employees in 401(k) plans goes into effect December 24. Many employees will now be given the choice to "opt out" of their company's default 401(k) plan rather than "opt in," as they do now.

Employers May Now be at Risk of Being Sued Over 401(k) Costs

RICHMOND, Va., May 6 /PRNewswire/ -- According to a recent Supreme Court ruling, employers may now be at risk of being sued by individual 401(k) participants. Justice John Paul Stevens ruled that ERISA "authorize[s] recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account." Since excessive 401(k) fees can certainly decrease the value of a participant's plan assets, this ruling may put many employers at risk of potential lawsuits. "Part of an employer's responsibility as a plan trustee is to know the total cost of the company's 401k program and whether or not such cost is reasonable under ERISA," states David B. Loeper, CEO of Financeware, Inc. and author of Stop the 401(k) Rip-off! "Plan trustees are at risk if they cannot document that they have evaluated the total costs participants bear

Roth 401(k) a boon later with taxes

Question: I'm in my 20s and work for a company that offers both a regular 401(k) and a Roth 401(k). I'm trying to decide which to use. Is there an age when it makes sense, or doesn't, to choose the Roth 401(k)? How do you decide? - R.S., Denver

Final Roth 401(k) Distribution Regulations

MAY 2008 - On April 30, 2007, the IRS published final regulations on the taxation of distributions from designated Roth accounts, better known as Roth 401(k)s and Roth 403(b)s. This article mentions only the Roth 401(k), but the information applies to Roth 403(b)s as well. These final regulations for the taxation of Roth 401(k) distributions are effective April 30, 2007, and generally apply to tax years beginning on or after January 1, 2007. Similar regulations will apply to Roth 403(b) plans when the final 403(b) regulations are released.

Should You Tap Your 401(k) Now?

p>Have you ever taken a loan from your 401(k)?

If you have, you're not alone. A number of studies in recent years have shown that about a fifth of 401(k) plan participants have loans outstanding at any given time. And while 401(k) loans are a once-in-a-lifetime event for some, many other folks treat their retirement savings as yet another revolving line of credit.

Can Banks Win the 401(k) Lottery?Loading...

Total 401(k) plan assets grew 12% to $2.9 trillion last year, and Simple, SEP and Solo 401(k) plans saw double-digit growth, reaching $300 billion in assets, according to a study by the Society of Professional Asset Managers and Record Keepers, or SPARK.

Why ETFs And 401(k)s Will Never Match

Exchange-traded funds, long known as a low-cost method of investing for individual investors, are receiving increasing media exposure as a potential solution to reduce 401(k) plan fees. In fact, ETFs have been touted by at least one firm as the "low-cost solution for 401(k)s." The reason for the increased media exposure for ETFs is relatively straightforward: On average, ETFs cost less (i.e., have lower expense ratios) than actively managed mutual funds. However, comparing passively managed ETFs with actively managed mutual funds ignores the fact that there are already passive index mutual funds that are being used in retirement plans today.

401(k)s: Where You Stand

Have you ever wondered how your 401(k) nest egg compares with those of coworkers or neighbors your age? Here's a sneak peek into what Americans have stashed away in their 401(k)'s and how they've invested their money, by age group.

TOOLS FOR EVALUATING YOUR 401(K) PLAN

Q: How can I prove that my company 401(k) plan is a loser? The company I work for has our plan with Putnam. I believe there is no combination of funds in the 401(k) that has ever beaten the S&P 500 index over any period of time.

7 Ways to Sabotage Your 401(k)

With its tax advantages and compounding magic, the 401(k) is likely to be one of the most powerful instruments in your retirement toolbox. But take care when managing this account: A few missteps can make a difference of thousands of dollars down the road. Here are seven potentially costly 401(k) traps, paired with advice from the pros on how to avoid them:

FINRA Warns Investors: Don't "Swipe" Out Your Retirement Savings With 401(k) Debit Cards

Washington, DC — The Financial Industry Regulatory Authority (FINRA) today warned investors about the potential pitfalls of using 401(k) debit cards to borrow money from their retirement funds. The introduction of the 401(k) debit card has made borrowing from a retirement savings account as easy as swiping and spending - a tempting convenience that can have significant repercussions on the card user's future retirement security.

What Should You Do With Your Old 401(k)?

(EMAILWIRE.COM, June 26, 2008 ) (EMAILWIRE.COM, Cincinnati, OH -- If you have changed jobs several times during the course of your career, you probably have an interesting collection of retirement savings accounts from your previous employers. In fact, according to the Department of Labor, Americans move to a new employer once every four years and our collective trail of old 401(k) and 403(b) plans totals in the trillions of dollars. While leaving your retirement account with a former employer is a better decision than cashing out your account and splurging on a boat, it may be more beneficial to consolidate your retirement savings by rolling your old 401(k) or similar employer-sponsored retirement plan into an IRA. A Rollover IRA offers you four major benefits: • Increased Investment Options.

Can a 401(k) Pay for Grad School?

I am currently working and plan to attend business school in fall 2009. I want to save as much as I can in advance and also avoid as much tax as possible. If I contribute toward my 401(k) plan, will it be possible to withdraw the money without any penalty and taxes?

Tapping Your 401(k) Before You Retire

Ever been to a clearance sale at a department store and wonder how a massive store like Macy's or Saks can have 50%, 60%, or even 75%-off sales and still remain in business? Ever wonder why that piece of cloth that an Italian designer calls a dress can be worth $2,400, and how much it really costs to make and sell?

How Can RSS Benefit Your Blogging Activities?

How can RSS benefit your blogging activites? RSS can benefit your blogging activites in two different ways: it can help you generate traffic and it can help you retain traffic. RSS can benefit your traffic-generation efforts by adding fresh, optimized content to your blog automatically; and it can benefit your traffic retention rate by providing better, updated content for your blog visitors.

How Can RSS Benefit Your Blogging Activities?

How can RSS benefit your blogging activites? RSS can benefit your blogging activites in two different ways: it can help you generate traffic and it can help you retain traffic. RSS can benefit your traffic-generation efforts by adding fresh, optimized content to your blog automatically; and it can benefit your traffic retention rate by providing better, updated content for your blog visitors.

Merrill Lynch Uni-K 401(k) Plan

Merrill Lynch and Pioneer Investments are offering the Uni-K Plan - a 401(k) plan designed exclusively for owner-only businesses.

ShareBuilder401(k) Reports Surging Demand for Small Biz 401(k) Plans

BELLEVUE, Wash., May 20 /PRNewswire/ -- At a time when many Americans are scrambling to make ends meet, a surprising number of small businesses are finding the wherewithal to finally begin saving for retirement, according to ShareBuilder401(k), a leading provider of 401(k) plans for small businesses.

ShareBuilder401(k) Reports Surging Demand for Small Biz 401(k) Plans

BELLEVUE, Wash., May 20 /PRNewswire/ -- At a time when many Americans are scrambling to make ends meet, a surprising number of small businesses are finding the wherewithal to finally begin saving for retirement, according to ShareBuilder401(k), a leading provider of 401(k) plans for small businesses.

ShareBuilder401(k) Reports Surging Demand for Small Biz 401(k) Plans

BELLEVUE, Wash., May 20 /PRNewswire/ -- At a time when many Americans are scrambling to make ends meet, a surprising number of small businesses are finding the wherewithal to finally begin saving for retirement, according to ShareBuilder401(k), a leading provider of 401(k) plans for small businesses.

401(k)s Flee for the Hills

According to the Hewitt 401(k) Index, in March, many investors moved their 401(k) money from stocks to bonds. (OK, from "equities" to "fixed income investments," if you want to get all fancy about it.) Unfortunately, that's one of the worst possible moves those investors could make.

Opinion: why Napster can't fail with their new DRM-free venture

Can we call 2008 the heady days of digital music yet - can we? Can we? Sure, 2007 had its fair share of digital movers and shakers, with Radiohead pioneering the new music release formula, but with today's news that Napster is going DRM-free, surely things can only pick up in speed?

5 Reasons to Avoid 401(k) Debit Cards

New 401(k) debit cards make it even easier to flunk do-it-yourself retirement. Investors should be wary of the potential pitfalls of 401(k) debit cards, according to an investor alert from the Financial Industry Regulatory Authority (FINRA), a nongovernmental securities industry regulator.

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