Retirement Planning
401(k), IRA, Roth accounts, pension plans, withdrawal strategies, required minimum distributions, and how much you need to retire.
Latest in Retirement Planning
State regulators warn that swapping a pension for an annuity often just pays a salesperson a fat commission
Retirees who rolled pension savings into an annuity are a top target for a sales practice regulators call “churning” — pushing a client to trade...
Older savers can put an extra catch-up amount into a 401(k) each year once they turn 50
Turning 50 unlocks a retirement-savings lever many workers never use: the ability to funnel extra money into a 401(k) beyond the plan’s standard annual deferral...
Skipping a tax refund’s direct-deposit split leaves free retirement savings on the table
A federal tax refund is only as useful as where it lands, and for most filers it lands in a single checking account by default....
A Roth IRA’s earnings can be taxed if pulled before a five-year clock, even after age 59½
A five-year holding requirement written into federal tax law can still produce an income-tax bill on Roth IRA earnings, even for savers who have already...
Required withdrawals from a traditional IRA now begin at age 73
Required minimum distributions from a traditional IRA now begin at age 73, not the age 70½ threshold that governed the rule for decades, or the...
Skipping a full 401(k) employer match leaves free retirement money on the table
An employer that promises to match part of what a worker contributes to a 401(k) is not extending a bonus — it is offering compensation...
Leftover money in a 529 college plan can now roll into the beneficiary’s Roth IRA
For nearly three decades, money left over in a 529 college savings plan after graduation had one honest use: more education, for the same beneficiary...
A Roth IRA has no required withdrawals, so the money can grow untouched for heirs
Every other tax-advantaged retirement account eventually forces the owner’s hand: traditional IRAs, 401(k)s, and similar plans require withdrawals starting at age 73, whether or not...
The Rule of 55 lets someone who leaves a job at 55 or older tap that 401(k) penalty-free
Most people are told that retirement accounts are locked until age 59½, with a 10 percent penalty for anything withdrawn earlier. But a worker who...
The “widow’s penalty” can push a surviving spouse into a higher tax bracket the next year
A surviving spouse who files a joint return in the year their husband or wife dies can be caught off guard the following year, when...
The home-sale tax exclusion lets a married couple shield up to $500,000 of profit
A married couple who sells the home they have lived in for years can walk away with up to $500,000 of profit and owe the...
A new federal match will add up to $1,000 a year to a low earner’s retirement savings starting in 2027
Starting with the 2027 tax year, the federal government will deposit up to $1,000 directly into the retirement account of a low- or moderate-income saver...
A power of attorney ends at death, when the named executor takes over an estate
A power of attorney is one of the most useful documents in financial caregiving, letting a trusted agent pay bills, manage accounts, and handle property...
A living will and health-care proxy direct your care when you cannot speak for yourself
A living will and a health-care proxy answer the same unsettling question in different ways: who decides on medical treatment when the patient cannot decide...
A 401(k) loan avoids taxes and penalties as long as it’s repaid on time
A 401(k) participant who borrows from their own retirement account is not making a taxable withdrawal at all, as long as the loan follows the...
Spreading a required IRA withdrawal across the year can smooth a retiree’s tax bill
Retirees who own traditional IRAs and most workplace retirement accounts must begin required minimum distributions the year they turn 73, and the total owed for...
A federal retiree’s survivor annuity continues for a spouse only if the worker elected it
A federal employee who retires under CSRS or FERS does not automatically guarantee their spouse a monthly income after they die. The survivor annuity that...
A special-needs trust preserves government benefits for a disabled heir
Leaving money directly to a disabled heir who receives Supplemental Security Income or Medicaid can backfire badly: those programs cap how much a recipient can...
A durable power of attorney lets a trusted person handle your finances if you can’t
A power of attorney is a one-page legal fix for a problem most families only discover mid-crisis: someone needs to pay a parent’s mortgage, sign...
A revocable trust can name someone to manage your money if illness leaves you unable
A revocable living trust does more than route money to heirs after death. Written correctly, it also names a backup manager — a successor trustee...