A Thrift Savings Plan (TSP) is a retirement savings plan for federal employees and members of the uniformed services. It is similar to a 401(k) plan offered by many private employers, but there are some key differences. TSPs are administered by the Federal Retirement Thrift Investment Board (FRTIB), which is an independent agency within the … Read more
A hardship withdrawal from a 401(k) plan allows you to take money out of your account before reaching the age of 59½ without paying a 10% early withdrawal penalty. However, you must meet certain requirements to qualify for a hardship withdrawal. These requirements include: * You must have an immediate and heavy financial need. * … Read more
To determine if you can tap into your 401(k) retirement account for a house down payment, you need to understand the potential penalties and restrictions. Withdrawing funds from your 401(k) before age 59½ typically incurs income taxes and a 10% early withdrawal penalty. However, there are exceptions to this rule. Some 401(k) plans offer hardship … Read more
phrase Deciding whether to halt 401k payments in favor of debt paydown is a complex choice. Factors to consider include your age, financial goals, tax bracket, and the interest rate on your debt. If you are young and have a long investment time frame, it may be more advantageous to maintain 401k payments, as long-term … Read more
The level of aggressiveness in your 401k plan depends on several factors, including your age, risk tolerance, and financial goals. Younger investors with a longer time horizon can generally afford to take on more risk, meaning they can allocate a larger portion of their portfolio to stocks. As you get closer to retirement, you may … Read more
Fidelity’s 401(k) plan offers various fee structures that vary depending on investment options and account features. For example, some plans may charge an annual administrative fee based on the total assets in the plan, typically ranging from 0.03% to 0.15%. Additionally, there may be investment fees associated with mutual funds or exchange-traded funds (ETFs) included … Read more
With a 401(k) loan, you can borrow against your retirement savings to help finance a home purchase. This can be a convenient and potentially cost-effective option, as 401(k) loans typically have lower interest rates than traditional mortgages. However, it is important to consider the potential drawbacks before taking out a 401(k) loan. For example, you … Read more
Early withdrawal from a 401k retirement account before age 59½ typically incurs a 10% penalty on the withdrawn amount. This penalty is imposed by the Internal Revenue Service (IRS) and is in addition to any applicable income tax on the withdrawal. For example, if you withdraw $10,000 from your 401k before age 59½, you would … Read more
To access your 401(k) balance through Fidelity, there are a few convenient methods available. Firstly, you can create an online account on Fidelity’s website by registering with your personal details. Once your account is activated, you’ll be able to view your balance, investment details, and make changes to your account. Additionally, you can download the … Read more
Typically, you can’t directly roll over funds from a Traditional IRA into a 401(k) due to differences in tax treatment. Traditional IRAs are funded with pre-tax dollars and grow tax-deferred, while 401(k)s are funded with pre-tax or after-tax dollars and may grow tax-free or tax-deferred. Rolling over pre-tax IRA funds into a 401(k) could trigger … Read more