Report reveals 401(k) balances reach record levels due to increase in automatic enrollment
Record High Contributions to 401(k) Accounts in 2025 A recent report from Vanguard reveals that American contributions to 401(k) savings accounts reached an all-time high in 2025. According to the findings, the median account balance for employees with active 401(k) plans rose by 27% from December 2024 to December 2025. The report notes that 94% […]
Caution: the hidden danger in your 401(k)
For many working Americans fortunate enough to utilize a 401(k), saving for retirement can feel quite straightforward. You simply inform your employer about your desired contribution each year or per pay period, and they deduct that amount from your salary. If you’re one of the lucky ones, your job might even offer a workplace match. […]
Mandatory minimum withdrawals from 401(k) accounts may lead to increased taxes for you
In the discussion on “Morning with Maria,” the panel dives into earnings reports and what’s ahead for NVIDIA and various retailers. For many working Americans, especially those participating in a 401(k) plan, saving for retirement seems quite straightforward. You simply let your employer know what percentage of your paycheck you’d like to contribute, and they […]
How your 401(k) target date fund might be restricting growth opportunities
The panel on “Morning with Maria” discusses earnings and provides a preview of NVIDIA’s first quarter earnings, along with those of various retailers. Finding the funds to contribute to your 401(k) might seem like the toughest part of saving for retirement. But, honestly, picking the right investments can be just as tricky. Because of this, […]
A 58-Year-Old With $2.2 Million in a 401(k) Has Five Years to Complete a Roth Conversion That Could Save $315,000 in Taxes Over a Lifetime
Quick Read Waiting until 63 to convert $80,000 a year can lead to a reduction in tax brackets from 17% to 24%, ultimately saving around $315,000 by age 73. If you aim to convert, it’s wise to build a reserve of about $150,000 in outside savings to handle the conversion tax without touching your $2.2 […]
Three Steps to Take With Your 401(k) Before Retiring in 2030
Preparing Your 401(k) for Retirement in 2030 So, if you’re looking at retiring in 2030, you might be imagining what life will be like without the daily grind. But, here’s the thing: a solid retirement plan can require some financial groundwork. Social Security might provide some relief, but it’s essential to ensure your 401(k) is […]
A 75-Year-Old With $3 Million in a 401(k) Realizes Three Years of Required Minimum Distributions Will Result in $42,000 in Medicare Surcharges
quick read A $3 million 401(k) at the age of 75 would mean an RMD of $122,000, pushing the Modified Adjusted Gross Income (MAGI) to $200,000 and resulting in a $564 monthly Medicare surcharge. Consider a Roth conversion before RMDs kick in and roll those funds into an IRA to enable $111,000 in qualified charitable […]
The 401(k) Mega Backdoor Roth Method a Tech Employee Used to Accumulate $750,000 in Roth Savings in Six Years
Quick Read A Meta engineer earning $200,000 can convert their $36,250 annual after-tax 401(k) contributions into a Roth and potentially accumulate $750,000 tax-free by the age of 36. Before engaging in a mega backdoor strategy, ensure your Meta plan permits after-tax contributions and in-plan Roth conversions. Wondering where you stand with retirement? SmartAsset offers free […]
The $40,000 Tax Strategy to Consider Once Your 401(k) Reaches Its Cap
Quick read By utilizing direct indexing, replacing the S&P 500 (SPY) with 150 to 250 stocks, you might incur losses between $30,000 and $50,000 annually while also saving $9,500 to $12,800 in taxes on a $1.2 million portfolio. It’s wise to capture tax revenue ahead of significant equity events and leverage Roth conversions to minimize […]
Fraudulent takeover of 401(k) accounts stole $751,430 in just one phone call
Scam Exposes Risks in Retirement Accounts A recent incident involves a scammer who contacted Alight Solutions, which manages Colgate-Palmolive’s 401(k) plan. Identifying himself as an employee, he requested updates to the contact details associated with the account. Months later, a staggering sum of $751,430 was transferred to a Las Vegas address and bank account, leaving […]