401(k) is a kind of account for retirement savings in United States of America, whose name is taken from the internal revenue code subsection 401(k)It was first adopted in early 1980’s for the American workers as a retirement plan, which was a substitute of a regular pension system under which pension was paid by the employer. Under the 401(k) the grantor can start withdrawing his money after attaining the age of 591/2 years. The unique thing about the 401 (k) is that it has reallocated the load of retirement savings on workers which was once on the shoulders of employers. Under this provision the employersRead More →

Many people do not think ahead about reducing taxes during their retirement years. But actually there are many ways to reduce the amount of taxes that you pay during your retirement years. Some of these include. Maximizing the nontaxable amount of your retirement plan benefits by taking a lump sum distribution limited to your previous contributions. Planning the order and timing of (a) retirement plan rollovers and (b) IRA distributions to maximize the nontaxable amount. Eliminating withholding tax on retirement plan distributions by making a trustee to trustee rollover to your IRA. Electing to defer tax on the distribution to you of your employer’s stocksRead More →