Should I Cash Out My 401(k) or Roll it Over?

When a participant in a 401(k) Plan terminates employment, there are typically a few options they have regarding what to do with their plan. Take a cash distribution – This is a taxable event (assuming all funds are pre-tax funds). The plan will automatically withhold 20% for fe

How to Avoid RMD’s of your Roth 401(k)

In a Qualified 401(k) plan, a participant must begin Required Minimum Distributions (RMD’s) in the year he or she reaches age 70 1/2. This rule also applies to Pre-tax IRA’s. However, there is an exception to this rule when it comes to Roth IRA’s. This provides for a

Tax Reform: Retirement Plan Provisions

The Tax Cuts and Jobs Act covers a wide variety of tax changes. In the retirement plan world, before the final bill was passed, there was a lot of talk about reducing contribution limits and/or requiring Roth Deferrals as opposed to pre-tax deferrals. Thankfully, neither of these prop

Why Should I Start a 401(k) Plan for My Company?

Most people are familiar with the tax advantages to the participant of a 401(k) plan. There are also many benefits to an employer for implementing a 401(k) plan. Many of these are financial. The first, and most obvious benefit to the employer, is the tax advantages which can offset so

Backdoor Roth IRA

Everyone knows saving for your retirement is important. One attractive option is the Roth IRA. Contributions to a Roth IRA are not deductible in the year they are made as traditional IRAs, but they grow tax free and will not be taxed in retirement when distributions are taken. For 201