Even though they may appear similar, the amount of money you can effectively contribute to a traditional vs Roth 401k can be quite different. The IRS states that you are allowed to contribute up to $17,500 to one account or the other each year. But when you take a closer look and consider how taxes influence those contributions, you’ll discover that there are benefits in using the Roth over the traditional. … [Read more...]
Getting to Know the 401k Rules of Your Employer Retirement Plan
Getting to know the 401k rules of your employer retirement plan isn't difficult. All you need is to understand some of the main basics and how they will affect your goals. Why should you care? Because your employer sponsored retirement plan isn't just a good way to grow your investments tax free, but it could also be your ticket to free money beyond what you decide to contribute. This all depends on what your employer's rules are and whether or not you are doing everything you can to take full advantage of them. When you combine the benefits of your 401k with the power of your IRA accounts, you can really maximize all the resources … [Read more...]