OVERVIEW A 401k plan has yearly contribution limits. The 401k contribution limit for 2022 is $61,000 ($67,500 if age 50+). The limit for 2023 is $66,000 ($73,500 if age 50+). The IRS sets these guidelines so that you can’t contribute more than the allowable amount in a tax-advantaged retirement plan. An overcontribution is when you […]
OVERVIEW An individual retirement account (IRA) can help self-employed individuals save for their retirement. While you’re allowed to have an IRA in addition to a company 401k, it’s especially popular for people who don’t have access to an employer-sponsored retirement plan. There are many types of IRAs, but the most common ones are the traditional IRA and Roth […]
An IRA is a tax-deferred retirement account for individuals. Depending on the type of IRA you choose, contributions could be tax-deductible or withdrawals could be tax-free. There are three main IRAs that you could consider rolling over into a solo 401k. There’s also the Roth IRA, which allows Roth contributions: you make contributions with after-tax dollars, […]
KEY SIMILARITIES KEY DIFFERENCES A rollover is the movement of funds and/or assets from one retirement account to another. Usually, it involves moving from one type of retirement account into a different type of retirement account – for example, rolling over your 401k into an IRA account. There are two types of rollovers: direct and […]
OVERVIEW There are three different ways to fund a retirement account. Contributions, transfers, and rollovers. While transfers and rollovers sound a lot like the same thing, the IRS classifies them as two different events, and there are separate rules and regulations around them. This guide will outline the main differences between a rollover and a transfer […]
OVERVIEW A company 401k plan helps employees save for their retirement. Most employers will offer a 401k account to their employees, with many plans deducting automatic contributions from their checks each month. The IRS sets a limit each year on how much you can contribute. There’s a set limit for how much employees and employers can contribute […]
If you forgot about an old 401k plan, you’re not alone. According to a study by Capitalize, there were over 25 million lost 401k accounts totalling $1.35 trillion in value in 2021. Finding a lost 401k account is actually quite easy. In most cases, it’ll be right where you left it – at your old […]
OVERVIEW If you want to check your 401k balance, start by asking your employer’s HR department for information about the plan provider. In most cases, you’ll be able to log into the plan provider’s website to check your balance, and even reallocate your investments. Regularly checking the balance of your 401k plan gives you a […]
OVERVIEW & FAQ While a solo 401k gives you total freedom in what you can invest in, the IRS sets strict restrictions around who the plan can make transactions with. In a solo 401k, the assets are owned by the plan, not you or your business. When you open a solo 401k account, the plan registers for its own Employer Identification […]
