The financial news that actually matters
Focuses on savings strategies, 401(k), IRA accounts, retirement goals, and long-term financial planning. It helps individuals build sustainable retirement income strategies.
Savers who contribute to a Roth IRA hold a distinct advantage over those using traditional retirement accounts: the money they put in, which has already been taxed, can come back out at any time without triggering income tax or the 10% early-distribution penalty. That flexibility is built into federal tax regulations and confirmed by IRS…
Americans who turn 50 this year gained an extra $8,000 in tax-advantaged savings room after the IRS raised the standard catch-up contribution limit for 401(k) plans alongside a new $24,500 base deferral cap for 2026. That brings the combined ceiling to $32,500 for workers in the 50-and-older bracket, up from $31,000 last year. The increase,…
Workers saving for retirement at record rates still could not keep pace with stock market losses in early 2026. The number of 401(k) millionaires dropped to 645,000 in the first quarter, according to Fidelity’s quarterly retirement analysis released in late May. The decline arrived despite contribution rates hitting all-time highs in both 401(k) and 403(b)…
Americans who reached age 50 this year just gained a bigger window to build their retirement savings. The IRS set the 2026 elective deferral limit for 401(k) plans at $24,500, up from $23,500 the year before, and raised the general catch-up contribution for workers 50 and older to $8,000, up from $7,500. That means eligible…
Couples with a single income stream can double their retirement savings for 2026, even when one spouse earns nothing. The IRS set the individual retirement account contribution cap at $7,500 for 2026, or $8,600 for people age 50 and older, and a non-working spouse qualifies to contribute the full amount as long as the couple…
Workers saving for retirement through a 401(k) plan could see their annual contribution ceiling rise to $25,000 in 2027, while those between ages 60 and 63 stand to benefit from a projected super catch-up limit of $11,750. Those figures, however, depend on inflation data that the IRS has not yet finalized, and the gap between…
Savers who assume every dollar inside a retirement account is locked away until age 59-1/2 are working with an incomplete picture. Federal tax law treats Roth IRA contributions differently from earnings: because those contribution dollars were taxed before they went in, they can come back out at any time without triggering an additional tax bill…
Workers who leave an employer at age 55 or older can pull money from that company’s 401(k) plan without paying the 10% early-withdrawal tax that normally applies to distributions taken before age 59 and a half. The rule, rooted in federal tax code, applies only to the plan held by the employer the worker just…
Workers who borrow from their 401(k) accounts face a strict five-year repayment clock, and a job change before that clock runs out can convert the remaining balance into taxable income plus a 10% early-withdrawal penalty for those under age 59 and a half. The IRS requires repayment in substantially equal installments made at least quarterly,…
High earners who want to fund a Roth IRA for 2026 face a narrow but well-defined path. The IRS confirmed that the annual IRA contribution limit rises to $7,500 for 2026, the same combined cap covering both traditional and Roth accounts. For taxpayers above the Roth income phase-out, the backdoor conversion strategy still works, but…