Retirement Planning Archives - The Financial Wire

The Saver’s Match starts in 2027 — but only workers earning under $20,500 single or $41,000 joint qualify for the full $1,000 federal retirement-contribution match

Warren Cohen1 day ago1 day ago09 mins

Millions of lower-income workers who set aside even small amounts for retirement will soon be eligible for a direct federal deposit into their retirement accounts, but the income thresholds are tight enough to shut out a large share of the workforce. Starting with taxable years beginning after December 31, 2026, the federal government will match…

The Labor Department’s safe harbor to add crypto and private equity to default 401(k) lineups closes public comments tonight — before moving to a final OMB review

Warren Cohen2 days ago2 days ago013 mins

At midnight on June 1, 2026, the public comment window closes on a Labor Department proposal that would let employers place private equity and cryptocurrency funds inside the default investment lineups of 401(k) plans. These are the portfolios workers land in when they never make an active choice, and they hold the bulk of retirement…

Inherited Roth IRAs must clear within 10 years of the original owner’s death — but unlike inherited traditional IRAs, the heir owes zero federal income tax on any of the distributions

David Keller2 days ago2 days ago09 mins

Heirs who inherit a Roth IRA face the same 10-year withdrawal deadline that applies to inherited traditional accounts, but they keep every dollar they pull out. That split between a fixed timeline and zero federal income tax creates a planning window unlike anything else in the retirement system. For families sitting on large inherited Roth…

Couple reacting with excitement to a document

Roth conversions still lock in today’s 22% bracket through 2029 under the OBBBA — but the cuts snap back to pre-2018 rates in 2030, so converting now could save tens of thousands in lifetime tax

Warren Cohen3 days ago3 days ago018 mins

A married couple in suburban Ohio, both 62, with $600,000 sitting in traditional IRAs and a comfortable but not extravagant retirement income, faces a question that will quietly shape their finances for the next three decades: should they pay tax on those IRA dollars now, at a rate they know, or wait and hope that…

Financial advisor businessman using his laptop and doing some paperwork while sitting at desk and working

Rolling an old 401(k) into a traditional IRA loses the federal ERISA shield that protected the workplace plan — bankruptcy courts still honor a $1.7 million IRA carve-out, but civil-suit creditors can reach the rest

Warren Cohen3 days ago3 days ago013 mins

A physician in Los Angeles rolls a $2.4 million 401(k) into a traditional IRA after leaving a hospital system. Two years later, a malpractice plaintiff wins a judgment and moves to garnish the account. Under California law, a court can order part of that IRA turned over if it decides the balance exceeds what the…

The Labor Department’s proposed safe harbor to add crypto and private equity to default 401(k) lineups closes public comments tomorrow — then moves to a final vote and OMB review

David Keller3 days ago3 days ago013 mins

Most workers in a 401(k) plan never choose where their money goes. They get auto-enrolled, and a plan fiduciary picks the default fund on their behalf. According to Vanguard’s 2024 survey of its recordkeeping clients, roughly 60% of every dollar flowing into 401(k) plans lands in one of those default options. Now the Department of…

Senior man ecommerce business worker writing on document at office

Workers aged 60 to 63 can now stash $11,250 in 401(k) catch-up contributions — but only for those four tax years before the limit reverts to $8,000 at 64

David Keller4 days ago4 days ago011 mins

A worker who turns 60 this year and maxes out every available dollar in their 401(k) can now set aside $34,750 in a single tax year. That is not a typo, and it is not available to everyone. Starting in 2025 and continuing through the 2026 tax year, employees who are 60, 61, 62, or…

Depressed senior man feel worry about financial problem.

Required minimum distributions now start at age 73 — miss the December 31 deadline and the IRS penalty is 25% of what you should have withdrawn

David Keller4 days ago4 days ago015 mins

A retiree who turned 73 last year and holds $500,000 in a traditional IRA owes the IRS a required minimum distribution of roughly $18,868, calculated using the Uniform Lifetime Table published in IRS Publication 590-B. If that money does not leave the account by December 31, the IRS will impose a 25 percent excise tax…

Elderly man working at home during pandemic

Workers over 50 who earned more than $145,000 in 2025 just lost the pre-tax 401(k) catch-up — the full $8,000 now has to go Roth starting with this year’s contributions

Warren Cohen5 days ago5 days ago016 mins

The first paychecks of 2026 delivered an unwelcome surprise to millions of older workers who earn six figures: their 401(k) catch-up contributions are now being taxed upfront, with no option to defer. Under a provision of the SECURE 2.0 Act that took full effect this year, anyone over 50 whose 2025 FICA wages from their…

Unhappy young woman supporting stressed husband feeling depressed having financial problems calculating bills planning budget together at home suffering from lack of money bankruptcy concept

Inherited IRAs from owners who died after 2019 must be drained within 10 years — and heirs whose parent already took RMDs owe a 25% penalty on any year’s missed withdrawal

David Keller5 days ago5 days ago016 mins

Your mother passed away in 2021 at age 74, leaving you a $500,000 traditional IRA. She had been taking required minimum distributions for years. You rolled nothing over, took nothing out, and heard the IRS was waiving penalties while it sorted out the rules. That grace period is over. Starting with the 2025 tax year,…

Category: Retirement Planning

The Saver’s Match starts in 2027 — but only workers earning under $20,500 single or $41,000 joint qualify for the full $1,000 federal retirement-contribution match

The Labor Department’s safe harbor to add crypto and private equity to default 401(k) lineups closes public comments tonight — before moving to a final OMB review

Inherited Roth IRAs must clear within 10 years of the original owner’s death — but unlike inherited traditional IRAs, the heir owes zero federal income tax on any of the distributions

Roth conversions still lock in today’s 22% bracket through 2029 under the OBBBA — but the cuts snap back to pre-2018 rates in 2030, so converting now could save tens of thousands in lifetime tax

Rolling an old 401(k) into a traditional IRA loses the federal ERISA shield that protected the workplace plan — bankruptcy courts still honor a $1.7 million IRA carve-out, but civil-suit creditors can reach the rest

The Labor Department’s proposed safe harbor to add crypto and private equity to default 401(k) lineups closes public comments tomorrow — then moves to a final vote and OMB review

Workers aged 60 to 63 can now stash $11,250 in 401(k) catch-up contributions — but only for those four tax years before the limit reverts to $8,000 at 64

Required minimum distributions now start at age 73 — miss the December 31 deadline and the IRS penalty is 25% of what you should have withdrawn

Workers over 50 who earned more than $145,000 in 2025 just lost the pre-tax 401(k) catch-up — the full $8,000 now has to go Roth starting with this year’s contributions

Inherited IRAs from owners who died after 2019 must be drained within 10 years — and heirs whose parent already took RMDs owe a 25% penalty on any year’s missed withdrawal

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