National 401(k) Day is a day to raise awareness about the importance of saving for retirement. It is observed annually on the first Thursday in October. The Employee Retirement Income Security Act of 1974 (ERISA) created 401(k) plans in the United States. These plans allow employees to save money for retirement on a tax-advantaged basis. … Read more
401(k) contribution deadlines vary depending on the type of plan you have. For traditional 401(k) plans, contributions are typically made on a pre-tax basis through payroll deductions. The deadline for these contributions is the tax filing deadline for the year in which the contributions are made. For Roth 401(k) plans, contributions are made on an … Read more
Understanding the rules for withdrawing funds from your 401(k) is crucial to avoid penalties and taxes. Generally, you can withdraw funds without penalty after reaching age 59½. However, early withdrawals before age 59½ may incur a 10% early withdrawal penalty, along with income taxes. Certain exceptions exist, such as using funds for a first-time home … Read more
Cashing a 401(k) check involves several options based on your situation. Banks and credit unions generally accept 401(k) checks, but they may require identification and verification of the check’s authenticity. Alternatively, you can deposit the check directly into your bank account through an ATM or mobile banking app. Some financial institutions offer check-cashing services for … Read more
The 401(k) plan, a retirement savings plan available to employees in the United States, has its roots in the late 1970s. The Employee Retirement Income Security Act (ERISA) of 1974 laid the groundwork for the creation of 401(k) plans by setting minimum standards for private retirement plans. In 1978, Congress passed the Revenue Act, which … Read more
Roth 401k and Roth IRA, two retirement accounts, offer tax-advantaged savings. Key differences exist. With a Roth 401k, contributions are made pre-tax, reducing current income, but withdrawals in retirement are tax-free. Conversely, with a Roth IRA, contributions are made post-tax, so there’s no immediate tax deduction, but withdrawals in retirement are tax-free. Roth 401k plans … Read more
You can cash a Fidelity 401k check at a bank or financial branch that is affiliated with Fidelity, or a check-cashing store. The specific locations will vary depending on your region. Before going to cash the check, you may want to call the branch or store to confirm that they can process the check and … Read more
You can borrow from your 401(k) when you have a financial emergency or need to make a large purchase. However, there are some important things to keep in mind before you do. First, you’ll need to check with your employer to see if they offer 401(k) loans. If they do, you’ll need to meet certain … Read more
A Solo 401k must be established by December 31st of the calendar year in which the business is established and contributions are made. Contributions cannot be made after the tax filing deadline, including extensions. If an extension is filed, contributions must still be made by the original tax filing deadline. This is to ensure that … Read more
When taking money out of your 401(k) account before you turn 59 ½, you may have to pay an additional 10% early withdrawal penalty on top of any income taxes you owe. This penalty applies to withdrawals from traditional and Roth 401(k)s, as well as 403(b) plans and traditional IRAs. The penalty is designed to … Read more