Account holders should regularly check their 401(k) balances to ensure that investments are performing as expected, advises the Financial Industry Regulatory Authority. When necessary, investments in an account should be reallocated or rebalanced to assure optimum returns, explains Financial Samurai.Know More
Regularly checking the performance of a 401(k) and adjusting assets to ensure optimal growth are essential, as the instrument plays a critical role in assuring financial security after retirement, notes FIRA. The performance of a 401(k) solely depends on the choices of individual account holders. Account administrators cannot determine the outcome of a 401(k) account; their roles are limited to keeping records, generating reports and executing transaction requests from account holders, explains FIRA.
Account holders should check their 401(k) balance at least twice every year, advises the Financial Samurai. These checks should not be limited to ensuring that assets are performing optimally; they should also be used to assure that asset allocations are in line with the account holder's risk tolerance.
The performance of a 401(k) is also affected by the type and level of fees charged, warns FIRA. These include administrative fees, loan fees and investment management fees. At 0.02 percent to 2.5 percent, investment management fees typically make up the largest proportion of all fees charged to a 401(k) account. Account holders should carefully consider the impact of such fees when adjusting assets. Unnecessary asset adjustments should be avoided, warns FIRA.
401(k) balances can be checked online or by calling or faxing an account administrator, explains The Nest.Learn more about Financial Planning
The limit on salary deferrals to a 401(k) in 2014 was $17,500, with an additional allowance of $5,500 for employees 50 years of age or older. The 2014 compensation limit was $260,000. The limit on total employee and employer contributions was the lesser of 100 percent of compensation or $52,000.Full Answer >
Commonly used methods for finding balances for the Employee Provident Fund, or EPF, accounts include an Employees' Provident Fund Organization, or EPFO office, through the government of India or through the EPFO's electronic passbook service. Account holders have the option to find balances online or at a regional EPFO office.Full Answer >
Since 401(k) accounts are employer sponsored, most companies match their employees contributions up to a certain percentage. In addition, they have a higher cap on contributions. IRA accounts allow more freedom over investments. The benefits to having a 401(k) or an IRA account depend in part on your financial situation.Full Answer >
At age 70 1/2, an individual is required to withdraw the required minimum distribution, or RMD, from his 401(k) retirement account, according to About.com. The amount of an individual's RMD varies based on age and account balance, and it is calculated every year.Full Answer >