Category - 401k Center

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Inherited 401k plan
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Be Careful When Converting
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Give your 401(k) an Upgrade with Fidelity BrokerageLink®
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Don’t Just Walk By That Dime On The Ground!
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What Is A Lump Sum Pension Rollover?

Inherited 401k plan

An inherited 401k plan isn’t necessarily a different kind of retirement plan from a regular 401k plan in the hands of the original participant. However, the rules around an inherited 401k plan are unusual enough to warrant their own review.

When an individual inherits a 401k plan, generally this individual must begin taking minimum distributions from the plan, on a preset schedule. There are a few things to consider, the first of which is whether the beneficiary is the spouse of the original owner, or another person (non-spouse).

If the beneficiary is a spouse, special options are available for handling …

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Be Careful When Converting

When converting from a 401(k), traditional IRA, 403(b), SIMPLE IRA, SEP or 457(b) to a Roth IRA there are some important tax considerations to keep in mind.

First, converting from a tax deferred plan to a tax free plan it’s not always the best idea. Generally, it’s going to make sense to convert if the tax payer believes that he or she will be in a higher income tax bracket in retirement. For example, John, age 28 has a 401(k) and recently left his employer. He’s currently in the 15% bracket but expects to be in the 28% bracket or …

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Give your 401(k) an Upgrade with Fidelity BrokerageLink®

If your employer plan offers it, you’ll gain access to many more mutual funds and possibly an adviser.

If you are one of the many employees with a 401(k) or other plan held at Fidelity Investments, I suggest you read on. If your plan is held elsewhere (such as Charles Schwab), you may also have a similar self-directed option to investigate (called PCRA at Schwab).

Fidelity BrokerageLink® allows you to go beyond the traditional funds offered in your employer plan by giving you access to thousands of mutual funds. Not all plans contain this account feature, so check with your …

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Don’t Just Walk By That Dime On The Ground!

Have you ever been walking along the street and saw a dime on the ground?  Did you just walk right by, or did you stop to pick it up?  Heck, it’s only a dime, it’s not hardly worth the effort to bend over, right?  But what if it was a dollar?  Or a hundred dollars?  You wouldn’t just walk by that, would you?  What about $1,200?

Unfortunately, many folks do this very thing with their 401(k) plan employer matching funds.  Most employers that sponsor 401(k) plans provide a matching contribution when you defer money into the plan.  Often this is …

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What Is A Lump Sum Pension Rollover?

Retirement is near and now you must decide what to do with your 401k retirement plan and pension benefit accounts. The 401k can directly transfer into an IRA rollover account. There you may establish a monthly paycheck, complete with tax withholdings which are automatically sent to the IRS and state tax agencies.

You have the same option with your pension benefit!

Rather than beginning monthly payments from your pension, you may elect to take a lump-sum distribution sometimes identified simply as the lump-sum. Under many investment scenarios, you may have more retirement income and leave more to your heirs by …

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