According to a Cogent study, top 401k providers include Great-West Retirement Services, Milliman, Ascensus, Affiliated Computer Services, Hewitt, Mercer, the Standard, ADP Retirement Services and Paychex. Schwab, Fidelity, TD Ameritrade and Vanguard are top solo 401k providers that feature equities and mutual funds, whereas Pacific Life, Hartford Life and Nationwide offer solo 401ks that feature annuities for those who are self-employed.Know More
A 401k is an employer-sponsored savings plan that is used for retirement, and the plan allows workers to invest a pre-tax portion of their paycheck toward retirement. Therefore, taxes are not paid until the funds are withdrawn. These plans were developed in the 1980s to supplement pension plans. Before that time, employers offered pension funds. However, 401ks supplanted pensions when pensions became too expensive to run and manage.
A 401k plan allows each worker to control how much of an investment he wants to make towards his retirement. Most of the plans highlight stocks, bonds, mutual funds and money market investments in their portfolios. Target-date funds are popular choices, as these funds feature a mix of bonds and stocks that become more conservative over time. These retirement accounts are typically managed by a fund administrator from the selected 401k company.Learn more about Financial Planning
Safe harbor 401(k) plans are not subject to yearly contribution testing and are required to have employer contributions. As of 2015, these plans require either a set percentage contribution of 3 percent of employee income from the employer each year or a matching contribution system, according to Bankrate.Full Answer >
Those who believe they will fall behind on their water bills for the month should contact their providers and find out what options they offer. They may qualify for the Low Income Payment Program (LIPP) or the H20 Help to Others Program, both of which assist in specific situations as of May 2014.Full Answer >
The Internal Revenue Service (IRS) defines a 401(k) hardship withdrawal as one that must be made due to "immediate and heavy financial need” of the employee, the employee’s spouse or dependent. The Pension Protection Act of 2006 expanded the rules to include the employee's non-spouse and non-dependent beneficiary.Full Answer >
In order to qualify for a 401(k) withdrawal, the drawer must be at least 59 1/2 years old to avoid a 10 percent tax penalty, according to Bank on Yourself. The tax penalty may be waived under certain circumstances, says About.com.Full Answer >