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retirement

A collection of 18 issues

What Is a Safe Harbor 401(k) Plan? A Complete Guide for Employers and Employees

Understanding the Safe Harbor 401(k) Plan A Safe Harbor 401(k) plan is a type of employer-sponsored retirement plan designed to automatically satisfy certain IRS nondiscrimination tests. By following specific contribution and notice rules, employers can avoid the annual ADP, ACP, and Top-Heavy testing that often complicates traditional 401(

The 4-Percent Rule: Can It Still Work in Low-Yield Environments?

Introduction The 4-percent rule has been a cornerstone of retirement planning since the mid-1990s, promising that retirees could withdraw 4 percent of their portfolio in the first year of retirement and adjust that amount for inflation each year without running out of money over a 30-year horizon. But the world

What Is an In-Kind Rollover? Definition, Process, Pros & Cons

Introduction to In-Kind Rollovers Most investors know they can move money from one tax-advantaged retirement account to another, but many assume they must sell all the investments inside the old plan first. That is not always the case. An in-kind rollover allows you to transfer the actual securities—such as

What Is a Beneficiary Designation on 401(k)s?

Understanding 401(k) Beneficiary Designations When you enroll in a 401(k) retirement plan, one of the first administrative tasks you encounter is filling out a beneficiary designation form. Although it may feel like a minor piece of paperwork compared with choosing investments or deciding how much to contribute, this

What Is a Tax-Sheltered Annuity (403(b))?

What Is a Tax-Sheltered Annuity (403(b))? Introduction to Tax-Sheltered Annuities A Tax-Sheltered Annuity, more commonly referred to as a 403(b) plan, is a powerful retirement savings vehicle created especially for public-school employees, certain non-profit staff members, ministers, and other tax-exempt organization workers. Similar to its private-sector cousin, the

Why Asset Location Matters: Taxable vs Retirement Accounts

Introduction: The Overlooked Power of Asset Location Most investors spend countless hours debating which stocks to buy, which funds to hold, and when to rebalance. Far fewer consider where their investments should live. Yet asset location—the strategy of placing specific assets in the most tax-efficient accounts—can quietly add

What Is a Guaranteed Minimum Income Benefit (GMIB)?

Introduction to Guaranteed Minimum Income Benefit (GMIB) A guaranteed minimum income benefit, commonly abbreviated as GMIB, is a contractual rider that can be attached to certain deferred annuities. In simple terms, a GMIB promises the annuity owner a baseline stream of income in retirement, even if market performance disappoints. In

What Are Target-Date Funds and Are They Really ‘Set and Forget’?

Understanding Target-Date Funds Target-date funds, sometimes called lifecycle or age-based funds, are diversified investment vehicles designed to grow assets for a specific goal date—most commonly retirement. Each fund carries a calendar year in its name, such as 2030, 2045, or 2065, and automatically adjusts its mix of stocks, bonds,

What Is a Qualified Domestic Relations Order (QDRO)?

Understanding the Basics of a QDRO A Qualified Domestic Relations Order (QDRO) is a legal decree, typically issued as part of a divorce, legal separation, or child support proceeding, that instructs a retirement plan administrator to divide plan benefits between the participant and an alternate payee. The alternate payee is

Social Security Basics: How Benefits Are Calculated

Introduction: Why Understanding the Formula Matters For tens of millions of Americans, Social Security represents the financial backbone of retirement. Yet many future retirees admit they do not know how the Social Security Administration (SSA) actually calculates the monthly benefit that will arrive in their bank account. By learning the