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Roth 401(K) or Traditional 401(K): Which One Is Better for You?

A few years ago, my wife’s employer started to offer Roth 401(K) together with the traditional, pre-tax 401(K) plan. At that time we decided to continue funding the pre-tax 401(K) account and not contribute to the Roth account for the same reason I used to not covert existing Traditional IRA accounts into Roth. As you […]

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2013 401(K) Contribution Limit Is $17,500

If you are a participant of an employer sponsored retirement plan, such a 401(K) plan, then there’s a good news for you to save more for your future retirement. Starting next January, you will be able to put $500 more into the plan than what you can contribute this year. The IRS announced yesterday that […]

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2010 401(k) Contribution Limit Won’t Be Adjusted

If you are thinking of putting aside a little more for your retirement in 2010, you won’t get any help from the government because the 2010 401(k) contribution limit will remain at the same level as 2009 at $16,500 (the catch-up limit for workers 50 years old and order will also be the same as […]

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401(k) Debit Card Is NOT a Good Idea

Don’t borrow money from your 401(k) account unless you absolutely have to. If you have to, pay it back as soon as possible. The Securities and Exchange Commission (SEC) last week issued a warning on using 401(k) debit card to tap into retirement funds to pay for daily living expenses. As the slowed economy put […]

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401(k) Loan/Debit Card: A Bad Idea in General. But What if as Last Resort?

Everybody agrees in general that a 401(k) loan or a 401(k) debit card is a bad, bad idea. For those of us who don’t have a guaranteed pension plan and can’t rely on social security, 401(K), as well as other individual retirement savings accounts, is one major tool to save for retirement when our pre-retirement […]

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Yes, I Can Sue My 401(k) Administrator

According to a NY Times article (registration required) yesterday, the US Supreme Court has ruled on February 20th that workplace retirement plan participants can sue the plan administrator to recover their losses under the Employee Retirement Income Security Act of 1974. The case, LaRue vs. DeWolff 06-856, is filed by James LaRue of Southlake, Texas, […]

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Roth 401(k)

My wife’s employer started to offer Roth 401(k) plan through Fidelity this year. While it’s good to know that there’s a new saving vehicle available, we decided not to participate after examining the pros and cons of the plan at that time. The main reason was that it doesn’t offer more benefits than the traditional […]

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Reader Question: What to Do if a Bear Market is Coming?

The recent market plunge has generated quite some debate among PF bloggers what we should do (if we should do anything at all) with our investments in the event that major indexes lost 5% in just a couple of days: Should we see it as a buying opportunity? Should we re-evaluate our investment strategy? Or […]

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