With a 401k plan, employees can choose to defer some of their salary. So instead of receiving that amount in their paycheck, the employee defers, or delays, getting that money. In this case, their deferred money is going into a 401k plan sponsored by their employer (that would...
A type of defined contribution plan available to the small business owner with 100 or fewer employees. Under a SIMPLE 401k Plan, an employee can elect to defer some compensation. Unlike a standard 401k plan, the employer must make either: (1) a matching contribution up to 3% of...
Due to a weak economy, stock market volatility, and negative perception of company-sponsored plans, engagement in 401k plans has been on the decline. More than ever, organizations are struggling to increase employees' understanding, use, and appreciation of company-sponsored retirement programs. Hewitt's recent participant behavior research provides employers with valuable insights...
The client is one of the leading online providers of 401K plans, specializing in complete electronic plan administration. The client wanted to achieve early mover advantage to create a competitive edge within the Defined Contribution space, by leveraging offshore outsourcing capabilities of a credible offshore supplier. Patni mobilized its Process...
This tool calculates your take-home pay after deducting income taxes and contributions to a 401k or similar retirement plan that is sponsored by your employer. Similar retirement plans include 403b and Section 457 plans. The tool also adds any matching contributions that your employer makes to your retirement plan.
Use this tool to estimate how much more you could accumulate by increasing the percentage of your salary that you save each month in your 401k, and taking into account any employer match if applicable.
A 401k can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 401k are tax deferred. You only pay taxes on contributions and earnings when the money is withdrawn. Second, many employers provide matching...
There are several ways to manage your 401k balance when you leave an employer. The most fundamental of which is should you spend it or save it? Depending on your age and tax bracket, making the wrong decision can cost you thousands of dollars both in taxes and lost earnings....
An Individual 401k can be one of the best tools for the self-employed to create a secure retirement. First, all contributions and earnings to your Individual 401k are tax deferred. You only pay taxes on contributions and earnings when the money is withdrawn. Second, it has very high contribution limits...
Sure, you know that your employer's 401k plan is a good deal. But how much of a good deal? And how much should it figure into your negotiations next time you think about changing jobs? Perhaps more than you realize. The worksheet will help you calculate how much you'd be...
So you've got the list of mutual funds available in your 401k. Now what? Most plan providers aren't much help when it comes to selecting particular funds. You've got to do the dirty work yourself.
How does your company plan compare with the best ones offered? Fill in this worksheet, and you'll find out. We'll give your plan a grade - A, B, C, D or F. To see how your 401k stacks up in a particular category, just click on the category name. A...
These days, more than 85% of workers with 401ks can borrow from their plans. And a growing portion of 403b plan participants can too. If you've been diligently socking away a portion of your salary over the past few years (and you've had a match to boot), chances are that...
This template helps you to reallocate your investments in your 401k. Enter your current 401k investments by category. Then input the new percentages (new allocation %). The "Change Needed" column calculates the amounts by which you will need to increase accounts (negative numbers represent the amounts by which you need...
This template forecasts the growth in value of your 401K plan and to project the monthly income you will receive from the plan upon retirement. It also compares the wealth accumulation in the 401K plan in contrast to the growth of a taxable savings plan. The forecasted monthly income during...
This article, the first in a two-part series based on 'Pension Aspirations and Realizations: A Perspective on Yesterday, Today and Tomorrow', explores the ways retirement will be different, for both employers and employees, in a 401k world. The second article looks at ways of making Defined Benefit DB plans more...
As exchange-traded funds become increasingly popular with investors (ETF assets increased from $65.6 billion in 2000 to $422.6 billion in 2006), many retirement investment firms are pushing to increase ETF investment in the arena of 401k plans, where mutual funds have long been king. Many of the...
“Contract employee” is another way of describing “work portfolio,” a term coined by Irish author and philosopher Charles Handy in his 1989 book The Age of Unreason. Envisioning a new work structure, Handy contended that many professionals were increasingly likely to have not one career with one or two organizations...
Major mutual fund and investment management companies now offer self employed individuals 401k plans that are easy to install and administer at very low cost. What's more independent contractors and small business owners can borrow part of their retirement savings tax-free and penalty free by taking advantage of a loan...
