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 […]
Steps to transfer your 401(k) to a gold IRA
Growing Interest in Gold IRAs Amid Economic Uncertainty The popularity of 401(k) accounts is rising, yet factors such as the Iran conflict and inflation are driving more people to consider gold IRAs. Gold IRA rollovers enable workers to convert their 401(k) into physical gold without incurring taxes or penalties. To execute a rollover into a […]
Webcast: DOL Suggests Safe Harbor for Alternative Investments in 401(k) Plans
Webcast | May 5, 2026 Join our legal team for a 30-minute recorded session where we’ll explore the U.S. Department of Labor’s proposed rules aimed at simplifying how fiduciaries can offer alternative investments in 401(k) plans, along with some practical insights for both fiduciaries and alternative asset managers. We’ll cover: The rarity of alternatives in […]
Trump’s 401(k) Proposal: Who Could Gain and Who Will Not
During his State of the Union address on February 24, President Donald Trump highlighted significant inequalities in the U.S. retirement system. He pointed out that around 56 million Americans lack an employer-sponsored savings plan, which would typically offer a matching contribution to enhance retirement savings. This issue has been referred to as the “total disparity,” […]
Withdrawing from 401(k) to settle IRS debt: fees, taxes, and dangers
Receiving an unexpected tax bill can quickly send anyone into a panic, no matter their financial situation. It’s natural to want to fix financial issues quickly, which is why many turn to their 401(k)s or IRAs as potential lifelines. They often reach out to tax relief companies like TaxRise, desperate to access funds just to […]