401(k)

This special consideration for employer stock held in 401(k) plans only applies to lump-sum distributions, but it could save significant income tax. Taxpayers may be overlooking an important break on income tax when they take a lump-sum distribution from a 401(k) plan.

The Pension Protection Act of 2006 made Roth 401(k)s a permanent retirement option. While the Pension Protect Act lifted the cloud of uncertainty surrounding Roth 401(k) contributions by making them permanent, whether employers will change existing 401(k) plans to adopt the option remains to be seen.

With just some basic preparation you and your financial planner could have your retirement fund trained to overcome obstacles with the grace of a champion pedigree. Is it possible to train your retirement plan? We think so. Maybe you’re about to change jobs, change companies, or change your career completely. Whatever change is afoot, we don’t have to remind you how important it is to keep an eye on your retirement funds during tumultuous times. Assets for your retirement should be able to respond to any possible changes with ease. All it takes is a little training.

How you will take your 401(k) distributions when you retire can be an important consideration in executing your post-retirement plan. We all look forward to the day when we can finally kick back, relax and collect our carefully-planned and hard-earned retirement savings. But rushing into withdrawing your retirement funds could cost you a great deal of money in taxes. That’s why planning now for that day is so important.