What is a 403b plan?

by Chris Butterworth June 15, 2011

Are you a self-employed minister or a school employee? Does your employer offer a 403b savings plan? You should consider participating in this kind of retirement savings plan (also called a tax-sheltered annuity) to defer current income tax and perhaps benefit from matching contributions your employer may provide to you as a way to help you achieve your retirement plans.

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What is the 401k contribution limit if I’m married?

by Chris Butterworth March 20, 2011

Good question.  The contribution limit if you’re married is effectively double what it would be for individuals (provided you and your spouse both participate in individual 401k plans): If you’re 49 or younger: If you each contribute $17,000 tax-deferred to your respective 401k plans then as a couple you would have reduced your taxable income […]

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What’s the deal with a Roth 401k?

by Chris Butterworth November 29, 2010

I know, it sort of looks like a typo.  But Roth 401k’s do exist and they’re growing in popularity.  The Roth 401k was created by Congress in 2006 and essentially it is similar to the Roth IRA.  The plan is similar to a traditional 401k but instead of putting in money pre-tax, you contribute after-tax […]

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When can I take a loan from my 401k?

by Chris Butterworth November 27, 2010

Can I take a loan from my 401k? Yes, some plans do allow you to take a loan out from your plan.  Check with your plan administrator to see if it’s possible for you to take a loan without being taxed on it. What can I withdraw? Up to 50% of the vested account balance […]

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2011 401k Contribution Limits: Key Takeaways

by Chris Butterworth November 13, 2010

In October of 2010, the IRS released updated guidance on 401k tax rules for 2011, including information on the 401k contribution limits for 2011. However, scanning through the IRS’ website is a nightmare, so here’s what you need to know for 2011: Generally speaking, what was true in 2010 is true in 2011.  Because there […]

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