The latest in 401(K)S

Stern Advice: Financial predictions for 2012

2011-12-22T09:00:18Z

(Reuters) - Sigh. A lot of people are predicting more of the same for 2012: Another year of stock market volatility, high unemployment, banking industry upheaval, weak housing and more talk about Facebook, mobile commerce, 401(k) plans and taxes.

But maybe that's just because it's hard to envision change. Not everything will stay the ...

A Surprising Pot of Gold for the Golden Years

2011-12-12T12:30:22Z

Retirees have $2 trillion tied up in houses, money that can help make up for lagging 401(k)s and inevitable Social Security benefit cuts.

It is no secret that one of America's biggest challenges is financing the care of retirees who are living an av...

Year-End Moves to Avoid the Medicare High-Income Surcharge

2011-11-24T11:30:27Z

Take these steps to lower you income so you won't have to pay higher Part B and D premiums than other beneficiaries.

It looks like my income may be higher than usual this year. Is there anything I can do to avoid a high-income surcharge on my Medicare premiums in the future?

Trim Taxes by Boosting Retirement Savings

2011-11-24T11:30:25Z

Max out your contributions while you can and prepare to save a bit more next year.

There’s still time to trim your 2011 income tax bill and boost your retirement savings at the same time.

You have until December 31 to contribute up to $16,500 to your 401(k) or to another tax-deferred retirement account, such as a 403(b) for teachers and nurses, a 457 plan for polic...

Retirement crisis closes in on baby boomers

2011-11-03T13:30:10Z

MIAMI (Reuters) - Like many middle-class American baby boomers, Linda Carmona-Sanchez is anxious about slipping into poverty and says whatever dreams she once had about retirement in her "golden years" have turned into nightmares.

"We don't value people here in this country, and we value you less if you're not healthy and strong," Carmon...

2012 Retirement Account Contribution Limits

2011-10-25T10:30:15Z

You'll be able to stash a little more in your 401(k), 403(b) or Thrift Savings Plan next year. And income limits to deduct IRA contributions will rise.

How much will I be able to contribute to my 401(k) in 2012? Are there new income limits for making tax-deductible contributions to an IRA next year?

SE...

Best Retirement Plans for the Self-Employed

2011-10-24T10:30:30Z

A SEP and a solo 401(k) are two good options for freelancers and people who operate a sideline business.

What is the best way for people who are self-employed to save for retirement?

If you’re self-employed or have a sideline business, your best retirement-savings options are a Simplified Employee Pension (SEP) or a solo 401(k) plan. In both c...

NYC pension funds are cost-effective: report

2011-10-20T15:30:24Z

(Reuters) - Traditional pension plans provide a "better bang for the buck" for New York City public employees, paying the same retirement benefits as those used in the private sector but at a significantly lower cost, according to a report issued by the comptroller on Thursday.

Some of the cost savings enjoyed by public pensions stem from their in...

Playing Russian roulette with your assets.

2011-10-19T19:30:17Z

We consider holding at least one other passport as important as any other facet of your financial portfolio for the coming years.

We are nearing the end of the grand experiment in nation-states, democracy and socialism. In case you hadn't noticed, it failed miserably. Hundreds of millions were killed in wars engendered by nation states and made possible by fiat currencies and countless more were impoverished by the central banks instituted by the state. Riots a...

Use a 401(k) to Pay Off Debt?

2011-10-07T10:30:29Z

Think long and hard before you tap long-term retirement savings to pay off a short-term debt.

I have accumulated about $40,000 in my 401(k) plan at work. I’ve also racked up about $8,000 in credit card debt. Can I take a hardship withdrawal from my 401(k) to pay off my credit card bill? -- A.M., via e-mail

Unless you are in dire financial straits -- su...

The Cons of Borrowing From Your 401(k)

2011-09-28T10:30:18Z

Tapping your retirement savings to pay off debt usually isn't a good idea.

I have accumulated about $40,000 in my 401(k) plan at work. I’ve also racked up about $8,000 in credit card debt. Can I take a hardship withdrawal from my 401(k) to pay off my credit card bill?

Unless you are in dire financial straits – such as facing foreclosure – you probably won’...

Rules for Required IRA Distributions

2011-09-26T10:30:29Z

After you reach age 70˝, you must start withdrawing money from your account. Here's what you need to know.

It’s the time of year when I start receiving questions about required minimum distributions from IRAs and other retirement-savings plans. Generally, you must take distributions every year after you reach age 70˝. Here are some ...

Focus on Monthly Income When Saving for Retirement

2011-09-23T10:30:23Z

Instead of honing in on a total amount to save for retirement, workers should start considering how much monthly income their savings will generate.

One simple number could drastically improve 401(k) participants' retirement prospects -- if only employers, lawmakers, regulators and plan service providers would a...

401(k) break at risk as policymakers mull retirement shift

2011-09-13T05:00:24Z

WASHINGTON (Reuters) - U.S. retirement programs could look different if a grand deficit-cutting bargain is struck in upcoming negotiations.

On Thursday, the powerful Senate Finance Committee will explore "Tax Reform Options: Promoting Retirement Security." Despite the sle...

Allianz cuts fund fees to compete with rivals

2011-09-08T14:30:14Z

NEW YORK (Reuters) - Allianz Global Investors has reduced the fees on its target-date funds by as much as 33 percent to compete with its rivals.

Allianz has had higher fees than competitors like T. Rowe Price Associates and An MBA means greater earning potential, but paying off $100,000 in student loans trumps other financial goals.

An MBA means greater earning potential, but paying off $100,000 in student loans trumps other financial goals.

OUR READER
Who: Kim Reese, 44
Where: Atlanta
Question: How can I pay off the debt I took out to go back to school?

Like many Americans, Kim was a victim of the ...

Build a Nest Egg When You Work for Yourself

2011-08-22T10:30:29Z

The self-employed have several options when it comes to making tax-deferred contributions for retirement.

EDITOR'S NOTE: This article was originally published in the June 2011 issue of Kiplinger's Retirement Report. To subscribe, click here.

Becoming a free agent comes with a lot of perks. You can set your own hours, deduct your business expenses a...

Financial Planning for the Middle Class

2011-07-04T10:30:12Z

Where the middle-income crowd can get help they can afford.

Financial planning is often perceived as a service reserved for the wealthy. That’s understandable. The more money you have, the more complex your finances are. But people who don’t have hundreds of thousands of dollars in savings need guidance, too, and they often don’t have enough money to satisfy the ever-increasing min...

6 Financial Milestones for Twentysomethings

2011-06-16T10:30:19Z

Set yourself up for financial success by achieving these goals.

By G.E. Miller, Guest Columnist

Editor's note: Our regular Kip Tips columnist Cameron Huddleston, is taking a deserved vacation but has solicited the help of her favorite personal-finance bloggers to guide Kip Tip readers in her absence.

The twenties. At no other point in time in your life will you be better...

Required Minimum Distributions for IRAs and 401(k)s

2011-06-13T10:30:18Z

At age 70˝, you must make withdrawals from your traditional IRA, but, if you’re still working, you can delay tapping your 401(k).

I turned 70˝ this year but am still working. Do I have to take required minimum distributions from my IRA and 401(k) plan?

You must take required minimum distributions ...

What to Do With Old 401(k) Accounts

2011-06-10T10:30:08Z

Here's how to handle your retirement money when you leave a job behind.

OUR READER
Who: Erin Scottberg, 27
Where: Brooklyn, N.Y.
Question: What should I do with my retirement accounts from previous employers?

These days nobody sails through life with just one emp...

7 Personal Finance Basics for New Grads

2011-05-05T10:30:28Z

Share these tips with your children to help them get off to a good start on their own.

My daughter is about to graduate from college. What are the key personal finance issues she needs to consider during her first year on her own?

Congratulations to your daughter! If she tackles these personal finance basics, she’ll be off to a great start:

1. Make the mo...

Retirement Savings Tips for New Grads

2011-05-02T11:30:19Z

Start saving for your future early and give yourself more time to become rich.

Your college days are history, and you just landed your first real job. Congratulations! Now, listen up. You have a golden opportunity to start your financial life on the right foot -- and it doesn’t involve buying lottery tickets. The secret to becoming rich is really quite simple: Spend less tha...

Build an Emergency Fund or Invest for Retirement?

2011-03-16T10:30:37Z

Our reader has the enviable problem of saving so much he doesn't know what to do with it all. We help him prioritize.

OUR READER
Who: Ian MacKinnon, 26
Where: Philadelphia
Question: What should I do with the $25,000 in my savings account?

Four years afte...

The Basics of Roth IRAs

2011-02-21T11:30:17Z

Take advantage of this tax-advantaged account to stretch your savings.

I’ve received quite a few questions recently about how Roth IRAs work, so I figured it would be helpful to put several questions and answers together as an all-in-one Roth IRA guide.

Everything I read about preparing for retirement says to “save like mad.” What are the rules and contribution lim...

Kiplinger's Tax Glossary: Tax Terms You Need to Know

2011-01-27T11:30:36Z

Does filling out your return have you confused? Our tax dictionary defines every tax term -- and the tax rule it relates to -- you ever needed to know.

In Kiplinger’s A to Z tax glossary, you will find more than 100 tax terms defined in easy-to-understand language, along with the latest updates on t...

The New Realities of Retirement

2011-01-05T11:30:18Z

It's time to rethink your image of retirement. Whether you're years or decades away, you can make the new reality work for you.

It's the year 2020, and you're easing into another day in retirement. You kiss your wife goodbye on your way to the golf course. She sips her coffee before heading for the mall. But tee time and shopping ar...

How largest 401(k) stock, bond funds fared in 2010

2010-12-30T11:00:08Z

Most of the top 15 widely-held 401(k) stock funds underperform benchmark in 2010

It's been a respectable year for the 15 stock and bond mutual funds most commonly held in 401(k) plans.

Although many investors would be satisfied with a return of more than 10 percent, most of the largest U.S. stock funds underperformed the Before we start 2011, let’s go over how we resolved (or didn’t resolve) our financial faults this past year.

Before we start 2011, let’s go over how we resolved (or didn’t resolve) our financial faults this past year.

Merry Christmas, Starting Out fans! Since you’ve all been such good little readers this whole year, I’m happy to give you this special holiday gift: a bonus c...

Most companies restore 401(k) employee matches

2010-12-23T08:30:11Z

401(k) matches to return for nearly 77 percent of suspended companies within next 6 months

The stock market has rebounded nicely, yet there's still more good news when it comes to 401(k)s. Most of the companies that suspended their matching contributions as the economy tanked have either restored the match, or plan to within the next six months.

A company match is the amount an employer contributes to a worker's retirement account. The most common employer m...

Did You Leave Your 401(k) With an Old Employer?

2010-12-20T11:30:44Z

If you lost your job or retired, you'll probably be better off rolling your retirement stash into an individual retirement account than cashing it out or keeping it in your former company's plan.

A friend told me today that her brother left his job a while back to s...

Retirement Accounts for the Self-Employed

2010-12-20T11:30:26Z

Lower your taxable income by contributing to a SEP IRA or solo 401(k).

I earned $40,000 as a freelance consultant this year, and I am wondering what kind of retirement account is best to shelter my self-employment income? Do I need to make my 2010 contribution by December 31?

Whether you’re self-employed or just earn some freelance income on the side, it’s a great idea t...

Middle class falls short on retirement funds

2010-12-08T05:00:29Z

NEW YORK (Reuters) - The average American has saved less than 7 percent of his desired retirement nest egg and will likely have to keep working in retirement to supplement his income.

Middle-class Americans think they need $300,000 to fund their retirement, but on average have only saved $20,000, according to a survey released on Wednesday by Reuters) - The Department of Labor on Monday proposed a rule that will require employers to provide more information to their employees about the role of "target date" mutual funds in retirement plans.

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