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Is a Roth 401k Right for You?
Aug 18th
Think of the Roth 401k a modern-twist on the legacy 401k—it’s a hybrid 401k mixed with a traditional Roth IRA. One of the biggest advantages to having a Roth 401k, most would concede, is the tax-free contributions you make to it. Your employer-matched contributions are, however, pre-tax and thus will get taxed. Legacy 401k’s are contributed to, and employer matched, but on a strictly pre-tax basis. With a Roth 401k, your contributions go untaxed.
The good and the ugly
· With a Roth, you can contribute as much as $16,000 if you’re under 50, and 22,000 if over 50—yearly.
· A Roth 401k allows you to, in addition, keep a regular 401k in a separate account—which will still accrue employer contributions (if applicable) and still be considered pre-tax
· With both types, you still have to wait until 59.5 years of age to withdraw penalty-free, but with the Roth variety, you no longer pay taxes—whereas a 401k you will pay taxes on before and after retirement
· However, with a traditional 401k, the tax deductions you can take at the end of the year offer a better compromise to certain people. With Roth 401k plans, you lose the ability to deduct your taxes at the end of the year, but you stand to benefit of never paying taxes again when you hit the age of 59.
· The tradeoffs are significant and should be carefully considered according to your personal needs.
What it all boils down to
What it amounts to is this: The young crowd who is making substantially more cash and which will continue to climb into higher tax brackets into their 50’s—they will usually want to put more of their retirement savings into the Roth 401k plan than the traditional 401k basket.
On the other hand, just flip the argument around for those who believe they will be in a lower tax bracket into their 50’s. Putting more eggs into the traditional 401k basket over the former usually makes more sense in this case; because you retain the tax-deduction at the end of the year and you reduce the risk of losing money in the end if you cannot afford to put substantial amounts in a Roth 401k.
Inheritance Information You Should Know
Jan 23rd
Are you in line to get some money that someone who you were close to has left you? Getting an inheritance advance is a very common thing to do when someone is expecting to get a big sum of money that someone has willed to them. There are a few things that you will want to be aware of if you are thinking of getting an advance on your inheritance. You do not want to be taken advantage of like so many others who want to get their hands on some money as quickly as possible.
One of the things that you will want to know is that an advance on an inheritance is not the same as getting a loan. You will most likely have to go to a personal financial institution or some other type of lending agency in order to obtain this type of an advance. It is also not something that you are responsible for repaying or that you will carry as a debt, so this does not make it a loan of any kind.
When you go to a company that offers an inheritance cash advance there is a short process that will take place. The company will first want to check with the attorney that is handling the estate in probate court to confirm that you are the rightful inheritor of the funds. Once everything is confirmed through the attorney there may be a little bit of paper work that you will have to fill out in order to get the advance on inheritance that you are looking for.
There may be some fees attached to the advance so you will want to check and see how much the fee is before you decide which company you will get your advance from. These companies are in the money making business so some of them charge very hefty fees for making this type of transaction. Another reason they charge such large fees is because it could take a few years for everything to make it through probate court and for them to get their money from the estate.
You will be able to find a financial institution to handle your family and their best interested by looking and comparing companies online. This is a great way for you to be able to save time and money while getting what you want in the process. Do not get ripped off, do the research and choose carefully the company that you want to work with.
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