-
First IRA Distributions Due by April 1
Tweet Share on Facebook March 28, 2013 CommentDistributions from traditional 401(k)s and IRAs become required beginning shortly after you turn age 70½, and you must pay income tax on each withdrawal. The penalty for failing to take out the correct amount by the deadline is a stiff 50 percent excise tax on the amount that should have been withdrawn. Distributions are generally due by December 31 each year, but there are special rules that apply to your very first required minimum distribution.
-
10 Reasons to Worry About Your Retirement
Tweet Share on Facebook March 19, 2013 CommentAmericans are feeling increasingly pessimistic—or some might say realistic—about their ability to retire well. Nearly half (49 percent) of workers say they doubt their ability to afford a comfortable retirement, according to a new Employee Benefit Research Institute survey of 1,003 workers age 25 and older and 251 retirees. And 28 percent of employees say they feel “not at all confident” about their retirement prospects, the highest level ever recorded by the 23-year-old annual survey. Here’s why workers feel uneasy about their retirement years:
-
Why IRAs Hold More Money Than 401(k)s
Tweet Share on Facebook March 12, 2013 CommentWorkers can contribute up to $17,500 to a 401(k) in 2013, which jumps to $23,000 if you are age 50 or older. That’s over three times more than the $5,500 (or $6,500 at age 50 or older) that workers can contribute to IRAs. And yet workers have much more money invested in IRAs. Investors collectively held $4.87 trillion in IRA accounts in 2011, compared to $3.88 trillion in private-sector defined contribution plans like 401(k)s, according to Federal Reserve data. Here’s a look at why IRAs collectively hold more cash than 401(k) plans:
-
10 Things to Do in Retirement
Tweet Share on Facebook March 1, 2013 CommentSaving enough money to pay for retirement is important, but it’s not the only thing you need to do to prepare. When you no longer go to work each day, you will have hours of free time you need to fill. While relaxation might be enough for the first few weeks of retirement, many workers want something productive or exciting to fill their retirement years. A recent HSBC survey asked current employees what they aspire to do in retirement. Here are the activities U.S. workers have planned for their retirement years:
