ENROLLING in a 401(k) has never been easier, now that about two-thirds of large employers automatically sign up new employees in their workplace retirement plans. And thanks to the growth of set-it-and-forget-it target-date funds, investing the contributions to your 401(k) is a lot easier, too.
But if you leave your job or retire you’ll need to make some important decisions about the future of your 401(k) plan. You’ll also get a lot of advice about how to invest the money, particularly from financial institutions that offer rollover IRAs.
Rolling over your 401(k) to an IRA could provide you with more investment options than your former employer’s 401(k) plan had. It could also give you more control of your account, particularly once you retire. If you’ve worked for several different employers, rolling over your orphan 401(k) plans into an IRA also provides a way to consolidate your savings.
But your retirement security could be jeopardized if you roll over your funds into an IRA that charges high fees for subpar investments. And most workers don’t realize that IRA providers are not subject to the same investor protections that cover their 401(k) plans—a situation the Biden administration wants to change.
Denne historien er fra February 2024-utgaven av Kiplinger's Personal Finance.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 2024-utgaven av Kiplinger's Personal Finance.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
FREE HELP FOR COLLEGEBOUND STUDENTS
This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.
Strategies for Novice Investors
AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.
ANSWERS TO YOUR 529 PLAN QUESTIONS
Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.
Rate-Cut Winners and Losers
NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.
SHOULD YOU BUY THESE RED-HOT FUNDS?
Covered-call ETFs are popular but come with plenty of caveats.
DIVIDEND STOCKS ARE READY TO REBOUND
Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.
IS A 55+ COMMUNITY RIGHT FOR YOU?
These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.
AT LONG LAST, RATES ARE DROPPING
Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.