What happens to my Roth 401(k) if I leave my job?

July 7, 2024 No Comments

A: A Roth 401(k) works like a traditional 401(k) plan, in that contributions are made through paycheck deferrals and assets held within the plan are tax deferred until they are withdrawn in retirement. However, a Roth 401(k) plan is a post-tax option; contributions provide no

What happens when a will and a revocable trust conflict?

July 7, 2024 No Comments

A: A revocable trust, by nature, is a living trust established during the life of the grantor; by definition, it can be changed during the lifetime of the grantor. Since the trust becomes operative before the will takes effect at death, the revocable trust takes

What information does my employer have to give me regarding my 401(k) plan?

July 7, 2024 No Comments

A: Any employer who offers a 401(k) plan is required to provide, free of charge, each plan participant with a copy of the summary plan description, a copy of the summary annual report and an annual statement of the participant’s account. In addition, every participant

What is a family Limited Liability Company (LLC)?

July 7, 2024 No Comments

A: A family limited liability company (LLC) is formed by family members to conduct business in a state that permits such form of incorporation. The family LLC is a popular method to protect the assets of a family against claims by creditors, divide income among

What is estate planning?

July 7, 2024 No Comments

A: Estate planning involves making plans for the transfer of your estate after death. Your estate is all the property that you own. It can include cash, clothes, jewelry, cars, houses, land, retirement, investment and savings accounts, etc. Estate planning usually has several objectives and

What is the average cost of a making a will?

July 7, 2024 No Comments

A: The fee for having a basic will written can be as little as $150, but it can cost $1,000 or more if complicated or additional estate planning documents are required. A do-it-yourself will creation kit can be purchased online or in stores for less,

What is the difference between a revocable trust and a living trust?

July 7, 2024 No Comments

A: A revocable trust and living trust are separate terms that describe the same thing: a trust in which the terms can be changed at any time. Trusts Explained A trust is a separate legal entity a person sets up to manage his assets. Once

What is the difference between early retirement and full retirement as it applies to Social Security retirement benefits?

July 7, 2024 No Comments

A: If you were born in 1929 or later, you’ll need forty Social Security credits to be eligible for Social Security retirement benefits. You can earn up to four credits per year, which means that you will need to work at least ten years to

What is the difference between portfolio management and financial planning?

July 7, 2024 No Comments

A: Utilizing the expertise of a financial professional can be beneficial to an individual wanting to reach an investment goal or other financial objective. However, it is important to know which types of services are provided by the financial professional. Although it is common to

What are the tax consequences of a Roth IRA?

July 7, 2024 No Comments

A: The tax treatment of a Roth IRA distribution depends on whether the distribution is qualified. Qualified distributions from Roth IRAs are tax and penalty free, but non-qualified distributions may be subject to tax and an early-distribution penalty (known as an excise tax). Generally speaking,

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