Why is my 401(k) not FDIC-Insured?

July 7, 2024 No Comments

A: 401(k) plans are not FDIC-insured because they are typically composed of investments rather than deposits. The Federal Deposit Insurance Corporation (FDIC) covers deposits, not investments. Investments are riskier and carry the potential for loss of principal. Most 401(k) accounts are composed of investments. However,

Why is Social Security running out of money?

July 7, 2024 No Comments

A: On August 14, 1935, U.S. President Roosevelt signed into law the Social Security Act.Originally implemented to assist older Americans by paying them a continuing income upon their retirement, the program was later amended to extend benefits to the spouse and minor children of retired workers,

Why were 401(k) plans created?

July 7, 2024 No Comments

A: As the most widely used and well-known retirement savings plans in the United States, 401(k) plans were the brainchild of benefits consultant Ted Benna. In 1980, Benna noticed that the rules established in the Revenue Act of 1978 made it possible for employers to

What will happen to my SEP IRA if I leave my current employer?

July 7, 2024 No Comments

A: Because the funding vehicle for the SEP is a Traditional IRA, the same transfer and rollover rules that apply to a Traditional IRA also applies to an SEP IRA. The SEP is treated as a Traditional IRA, except that it is allowed to accept

Why would someone change their Social Security number?

July 7, 2024 No Comments

A: In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, or SSNs. However, exceptions are made under certain circumstances. Victims of identity theft or abuse are the most likely candidates for new numbers. Identity Theft Identity

What would privatized Social Security mean for Americans?

July 7, 2024 No Comments

A: The current Social Security system in the United States operates in a pay-as-you-go framework; the Social Security taxes paid by today’s workers enter the general fund and are immediately used to pay for current claimants. Privatization would eliminate the pay-as-you-go process. Instead, each taxpayer’s

Will I have to pay taxes on my 401(k) plan if I quit my job?

July 7, 2024 No Comments

A: If you decide to leave the company that holds your 401(k) plan, you have four options for dealing with your funds, and the tax implications depend on which option you choose. These options include: Leave the money with your old plan (if eligible). Move

When am I not required to submit a social security number on my tax return?

July 7, 2024 No Comments

A: When filing your tax return, you are generally required to include the social security numbers of yourself and the individuals for whom you claim as dependents. However, exceptions do apply. ExceptionsChild Born and Died Same YearIf you have a child who died in the

When are Simple IRA contributions due?

July 7, 2024 No Comments

A: According to the IRS, contributions to SIMPLE IRA plans that are taken from an employee’s pay check as a salary reduction are due within 30 days of the month in which the deferred payments were taken. For contributions taken from an employee’s pay in

When are Simplified Employee Pension (SEP) IRA contributions due?

July 7, 2024 No Comments

A: A SEP IRA, also known as a simplified employee pension plan, is an investment vehicle that allows business owners to contribute up to 25% of an employee’s compensation or $52,000 a year, whichever is less, to their employees’ retirement savings plans. This contribution must

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