401(k) plans have become a widely accepted retirement savings vehicle for small businesses. According to the most recent data, an estimated 51 million U.S. workers participate in 401(k) plans that have total assets of about $3 trillion. With a 401(k) plan, employees can choose to defer a portion of their
A SIMPLE IRA plan is a savings option for employers with 100 or fewer employees. This plan allows employees to contribute a percentage of their salary each paycheck and requires employer contributions. Under SIMPLE IRA plans, employees can set aside up to $11,500 in 2012 and $12,000 in 2013 ($14,000
A SEP plan allows employers to set up SEP IRAs for themselves and each of their employees. Employers must contribute a uniform percentage of pay for each employee, although they do not have to make contributions every year. Employer contributions are limited to the lesser of 25 percent of pay
Before you retire, take the time to figure out just how much money you'll need for retirement. One of the biggest concerns for retirees is whether their retirement savings will last the rest of their lives-- will they run out of money? Social Security is not the guaranteed source of
Over 60 million people today receive some form of Social Security benefits, including approximately 39 million individuals age 65 or older. (Source: Fast Facts & Figures About Social Security, 2012) But Social Security is more than just a retirement program. Its scope has expanded to include other benefits as well,
An individual retirement arrangement (IRA) is a personal savings plan that offers specific tax benefits. IRAs are one of the most powerful retirement savings tools available to you. Even if you're contributing to a 401(k) or other plan at work, you should also consider investing in an IRA.
Employer-sponsored qualified retirement plans such as 401(k)s are some of the most powerful retirement savings tools available. If your employer offers such a plan and you're not participating in it, you should be. Once you're participating in a plan, try to take full advantage of it. Understand your
What is a "stretch" IRA? The term "stretch IRA" has become a popular way to refer to an IRA (either traditional or Roth) that has provisions that make it easier to "stretch out" the time that funds can stay in the IRA after the death of the owner. A
Providing retirement benefits was a key provision of the Social Security Act of 1935. Older Americans were especially financially vulnerable during the Great Depression, and Social Security was enacted partly to provide them with some continuing income after retirement. Today, although the scope of the program has been widened through
Major considerations How much will you need in retirement? When do you plan to retire? What kind of lifestyle do you desire? How much do you have right now that you can count on for your retirement? What about Social Security; do you know what kind of benefits