Dayana Yochim, NerdWallet Published 3:27 pm CDT, Wednesday, May 29, 2019 This article was first published on NerdWallet.com. More than 97 million Americans have access to an employer-sponsored retirement plan. If your retirement savings is a portion of the $5.3 trillion invested in 401(k)s, you may have wondered how your company’s plan — and the investment choices you have within it — stacks up to the competition. Let’s take a look. Average employee contribution: $6,940 The average annual employee 401(k) contribution was $6,940 during the 12 months ending March 2019, according to Fidelity, which is one of the largest retirement-account record keepers. The IRS sets the bar for contributions pretty high: The 401(k) contribution limit for employees is currently $19,000 per year, with those 50 or over allowed to save $25,000. Average employer contribution: $4,040 Probably the best feature of 401(k) plans is the employer contribution — aka free … [Read more...] about How Does Your 401(k) Compare to Average?
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Cheryl Lock, provided by Published 1:52 pm CDT, Thursday, April 18, 2019 Hinterhaus Productions/Getty Images Before you can figure out what to do with savings, you'll need to build some. A CFP says the best way to save money is to start tracking your spending. Once you've been able to set some money aside, the first priority is paying off any high-interest debt. Visit BusinessInsider.com for more stories. Most people would like to be saving more money. Whether it's to pad an emergency savings account, to eventually buy a house or to some day be able to take that dream vacation to Europe, it's the general consensus that the more you can save, the better. If saving equals good stuff, then why is it so hard for us, in general, to save more? These days things like student loan debt and an overall high cost of living can stop people from reaching their ultimate savings goals. Plus, it can be hard to get started, since you'll need to have a good understanding of your overall … [Read more...] about A financial planner shares her best advice to save more money — and what to do with that cash once you’ve saved it
Elizabeth Aldrich, provided by Published 2:57 pm CST, Wednesday, February 27, 2019 Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. Business Insider may receive a commission from The Points Guy Affiliate Network. Getty Images The name might throw you off, but Wealthfront's new Cash Account is yet another high-yield savings account — competition in this field is leading to higher interest rates and lower fees, so now's the time to jump onboard. With a 2.24% APY, Wealthfront's new Cash Account finishes ahead of the pack when it comes to giving you the highest returns for your money. The account is fee-free and requires a minimum opening deposit of $1, making it accessible to all savers. High-yield savings accounts with no fees are the way to go for your short-term savings and emergency fund. Mine has already earned me $70 in interest over just three months. It took me longer into adulthood than … [Read more...] about Robo-advisor Wealthfront now offers a new high-yield savings account with a minimum deposit of $1 — here’s how it stacks up
.......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ALBUQUERQUE, N.M. — Q: I have a large balance in a 401(k) plan with my employer and turn 70-1/2 in 2019. I know that generally I must take my first distribution by 4-01-2020. But there is an exception if I continue to work. The HR people tell me I need to consult with my own tax adviser to determine how this still working exception to taking required distributions works. Can you explain the rule? Certainly. As you state, a participant in a qualified retirement plan such as a 401(k) must generally take required minimum distributions in the year that they turn 70-1/2. The tax law allows the first RMD to be deferred until April 1 of the year after you reach 70-1/2. If you defer the first required distribution you must then take two RMDs in the second year. ADVERTISEMENTSkip An … [Read more...] about Required 401(k) distributions can be deferred
Jan 22, 8:33 PM EST Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury National By Rita Williams 01/22/19 AT 8:13 PM The maximum amount you can contribute to your 401(k) retirement savings plan is climbing by $500 in 2019. If you're younger than 50, the maximum is now $19,000 rather than last year's $18,500. If you're 50 or older, it's now $25,000 versus last year's $24,500.What does that mean to you? Frankly, the hike in the amounts themselves aren't too significant. The 401(k) contribution limits have always been generous enough so even assiduous savers don't come within throwing distance of meeting the maximum. If you do max your account out, though, you can save $500 more this year. If you don't come close, it's still good to be reminded of how dynamic retirement vehicles 401(k)s can be. Here are the benefits of 401(k)s as we head into 2019.1. Saving in a 401(k) helps you prepare for a comfortable retirementMany people planning for … [Read more...] about Maximum 401(k) Contributions Climb For 2019. Here’s What That Means For Savers