Are mutual funds considered retirement accounts?

June 30, 2024 No Comments

A: Unlike a 401(k) or Individual Retirement Account (IRA), mutual funds are not classified as retirement accounts. Employers generally do not sponsor them like a 401(k), and the Internal Revenue Service (IRS) does not offer the tax benefits on mutual fund accounts that it does

Are My Social Security disability benefits taxable?

June 30, 2024 No Comments

A: Social Security disability benefits may be taxable if you receive other income that places you above a certain threshold. The majority of Social Security disability recipients, however, do not have to pay taxes on that income. The reason is that most people on disability

Are Roth 401(k) plans matched by employers?

June 30, 2024 No Comments

A: Roth 401(k) plans are typically matched by employers at the same rate as they match traditional 401(k) plans. Some employers do not offer Roth 401(k) plans. A Roth 401(k) is an employer-sponsored investment account that is similar to a traditional 401(k) plan in almost

Are SIMPLE IRA plans subject to ERISA?

June 30, 2024 No Comments

A: Savings Incentive Match Plans for Employees, or SIMPLE IRAs, are employer-sponsored retirement plans that allow employees of small businesses to make contributions via salary deferrals. These plans are covered by the Employee Retirement Investment Security Act, or ERISA, which details requirements for structure and

Are Social Security benefits adjusted for inflation?

June 30, 2024 No Comments

A: Social Security benefits are adjusted for inflation. This adjustment is known as the cost of living adjustment (COLA). For the program’s initial nearly four decades, benefit amounts did not increase based on higher living costs. The inflation of the 1970s, which was particularly hard

Are Social Security benefits taxable after age 62?

June 30, 2024 No Comments

A: Eligibility to collect Social Security benefits begins at age 62. Many seniors, to collect larger benefit amounts, wait until a later age. Whether Social Security benefits are taxable by the Internal Revenue Service (IRS) depends on how much additional income the person filing taxes

Are Social Security payments included in the US GDP calculation?

June 30, 2024 No Comments

A: Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). Transfer Payments For the purposes of calculating GDP, government spending does not include transfer payments – the reallocation of money from one party to another – which includes

401(k) and IRA contribution

June 30, 2024 No Comments

A: If you contribute to your 401(k) account, you may still contribute to a Roth IRA and/or a traditional IRA. Your 401(k) contribution has no effect on your Roth IRA contributions. You only need to make sure you meet the eligibility requirements for funding a

A lot of retirement projections seem to assume an 8% rate of return. Is this realistic?

June 30, 2024 No Comments

A: Many financial advisors would feel that an 8% rate of return is too high, and are more likely to work with 4-5% estimated return, depending on the dollar amount that is assumed will be invested.The 8% (or more) rate of return became the norm

Annuities: Present Value Versus Future Value

June 30, 2024 No Comments

A: The present value of an annuity represents the sum that must be invested now to guarantee a desired payment in the future, while the future value of an annuity is the amount to which current investments will grow over time. What Is an Annuity?

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