Withdrawals from a 401(k) account are difficult if you’re still employed by the company offering the 401(k). Withdrawals are allowed in certain circumstances — such as to avoid foreclosure — but are still subject to income tax and sometimes to the 10% early withdrawal penalty.
The IRS has released cost-of-living adjustments for 2012. More information on pension limits can be found here. More information on other COLA adjustments can be found here. Some highlights: The contribution limit to IRAs remains at $5,000. The income limits on the IRA deduction phaseout and Roth IRA contributions have been increased*. The contribution limit […]
Unhappy with the investment alternatives and fees being charged in your employer’s 401(k) plan? The Wall Street Journal offers some advice. WSJ: Getting the Most From a Lame 401(k) Retirement Plan
Should distributions from retirement accounts be taxed at capital gains rates instead of as ordinary income? A retiree named Ted Koch, writing a guest post at Forbes, thinks so: Basically the middle class and especially retirees have a lot of money tied up in IRA type investments that if they were to cash in on […]