A 529 plan is a tax-advantaged savings plan parents may utilize to save for their children’s future education costs. These plans are federally authorized by Section 529 of the IRS and are [...]
Cash-value life insurance policies are tax-deferred, meaning that the cash value component of such an insurance policy will not be taxed as it grows. Because the money is growing faster, the [...]
What is cash value life insurance? Cash-value life insurance is a type of permanent life insurance featuring cash value savings. Because it is permanent life insurance, it lasts the [...]
When utilizing a 401(k) plan for your retirement savings, you may be given the option to choose between a traditional or Roth account, but it does not always have to be one or the other. Instead, [...]
Many large companies offer their employees a 401(k)-retirement plan; a decision that may come with this benefit is whether to choose a traditional 401(k) or a Roth 401(k). Here are some reasons [...]
What is a Roth 401(k)? A Roth 401(k) is a type of retirement savings account that is less prevalent than the traditional 401(k) but is growing in popularity. These accounts have features similar [...]
401(k) Contribution Limits for “Highly Compensated Employees.” If you are a highly compensated employee (“HCE”), you may be subject to certain limitations on the funds you may contribute to your [...]
Total Limits on 401(k) Employer and Employee Contributions Total 401(k) contribution limits refer to the maximum contribution amount by both employer and employee. In 2022, the total contribution [...]
What is a 401(k) plan? A 401(k) is an employee-sponsored retirement savings account. With a 401(k), individuals invest pretax funds directly from their paychecks into an employer-sponsored [...]
Tax deferral refers to the action of delaying the payment of taxes to some point in the future. Some taxes can be delayed for an unlimited amount of time, and others may be taxed at a [...]
