Terms of Use Table of Contents Single vs. Flexible-Payment Annuities Fixed vs. Variable Annuities Fixed and Variable Annuity Expenses Deferred vs. Immediate Annuities Withdrawing Money from a Deferred Annuity Why Buy a Deferred Annuity? Why Buy an Immediate Annuity? Options with Guarantees Before You Buy an Annuity Consider the Following Some Questions to Ask Before Buying Confused about annuities? You're not alone. Many people have difficulty understanding them. The main reason for a  More...

Terms of Use: There are a variety of pension plans offered by private sector employers today. This information offers an explanation of traditional defined benefit pension plans insured by Pension Benefit Guaranty Corporation (PBGC): what they are, how they operate, and the rights and options of the workers covered by them. Table of Contents Traditional Pension Plans Predictable, Secure Lifetime Benefits Trends Pension Plan Provisions Federal Insurance For Your Pension Pension Checklist Other   More...

Terms of Use 1. Know your retirement needs Retirement is expensive. Experts estimate that you'll need about 70% of your pre-retirement income. Lower earners will need 90% or more to maintain your standard of living when you stop working. Understand your financial future. 2. Find out about your Social Security benefits Social Security pays the average retiree about 40% of pre-retirement earnings. Call the Social Security Administration at 1-800-772-1213 for a free Personal Earnings and Bene  More...

Terms of Use Interest on 401(k) loans is generally not tax deductible regardless of how you use the money. Almost every 401(k) account balance includes some dollars from salary-reduction contributions. Therefore, interest on loans from these types of plans is rarely deductible. Even though the interest is not tax deductible, you are in essence paying interest to yourself. Interest on home equity loans, for example, is tax deductible, so that may be a better option than taking a loan on  More...

Terms of Use Definition: A 401(k) plan is offered by employers to allow you to set aside money for retirement on a tax-advantaged basis. You can contribute pre-tax dollars and then invest those dollars in the investment options provided by your employer for the purpose of saving for retirement. The earnings on your investments are tax-deferred until retirement. Your employer may also make matching contributions to your account. 401(k) plan limits: 401(k) Plan Limits 2025 Elective Deferrals $  More...

Terms of Use Generally yes , you will be assessed a 10% penalty if you withdraw funds from your 401(k) plan before the age of 59-1/2. There are situations where the IRS will waive the 10% early withdrawal penalty on a 401(k): Medical Expenses: If your un-reimbursed medical costs exceed 10% of your adjusted gross income Court Mandates: If a court has ordered you to pay a former spouse, child or dependent from your 401(k) Substantially Equal Periodic Payments : If you take at least five su  More...

Terms of Use A QDRO stands for Qualified Domestic Relations Order and is a court order that mandates that a retirement plan administrator follow the terms of a divorce settlement. It is very important to have a QDRO whenever you divide a community interest in any 401(k). If you don't get a QDRO, the plan administrator is not required to follow the terms of your divorce settlement.

Terms of Use: Variable annuities have become a part of the retirement and investment plans of many Americans. Before you buy a variable annuity, you should know some of the basics – and be prepared to ask your insurance agent, broker, financial planner, or other financial professional lots of questions about whether a variable annuity is right for you. This is a general description of variable annuities – what they are, how they work, and the charges you will pay. Before buying any v  More...

Terms of Use Not directly, but you can roll over a 401(k) distribution to a Traditional IRA and then convert it to a Roth IRA. Note: Rolling over your 401(k) to a Roth IRA is a taxable event. You’ll have to pay income tax on your contributions, your employer's matching contributions (if applicable) and all earnings.

Terms of Use Withdrawals are allowed from your 401(k) plan if they are considered to be a hardship withdrawal, and they are allowed by the employer. Employers are not required to provide for hardship withdrawals. The IRS code that governs 401(k) plans provides for hardship withdrawals only if: The withdrawal is due to an immediate and heavy financial need; The withdrawal must be necessary to satisfy that need (i.e. you have no other funds or way to meet the need); The withdrawal must not e  More...