How Does a 401(k) Grow: The Mechanics Most People Never Examine

A 401(k) doesn’t just “grow” the way a savings account does. The account itself earns nothing. What grows is the portfolio of investments inside it, … Read More

The mega backdoor Roth gets sold as the ultimate hack for high earners who want to shovel tens of thousands of after-tax dollars into a … Read More

The short answer surprises most people: if you’re just contributing to your 401(k), you don’t report anything on your tax return. Your employer handles it … Read More

There is no age limit on 401(k) contributions. If you’re 72, 78, or 85 and still earning income from an employer that offers a 401(k), … Read More

Roughly half of American workers don’t have access to an employer-sponsored retirement plan. Freelancers, gig workers, employees at small businesses, and part-time staff are left … Read More

You’ve spent decades putting money into a 401(k). The day you retire, you’re handed four options and expected to make a decision that will determine … Read More

Inheriting a 401(k) feels like good news until the tax picture comes into focus. The short answer is yes, beneficiaries generally owe income tax on … Read More

A 401(k) doesn’t automatically convert into a paycheck the day you stop working. There’s no switch that flips it from “savings mode” to “income mode.” … Read More

Your 401(k) is almost certainly safe if you file for bankruptcy. Federal law shields ERISA-qualified retirement plans with no dollar cap, meaning your entire balance … Read More

Most people assume their 401(k) will end up with the right person after they die. The reality is less reassuring. Your 401(k) doesn’t follow your … Read More