401(k) loans

Most borrowers use defined contribution plan loans for essential health and housing costs rather than discretionary spending, new EBRI research found. Still, many financial advisors remain skeptical of such loans.

Ignore the stigma of borrowing from your retirement plan — a life raft for cash crunches — but be aware of the rules.

Pandemic-driven laws eased tax burdens on loans and withdrawals from 401(k) and IRAs, leading some clients to tap into their accounts while many others avoided a raid.

“The advice I give is to calculate the financial impact for each option,” an expert says.

The products provide advantages that “help women build savings faster: tax deferral and generally higher rates than CDs or Treasurys,” an expert says.

Raising the assumed age for decumulation to 67 from 65 could dramatically reduce the percentage of families at risk, an expert says.

Armed with some specific details, advisors can explain why the seductive option is both too good and too good to be true.

Nearly three in four defer medical treatment, get suboptimal care to avoid deductibles or skip appointments to sidestep a bill.

Those who fail to repay their loans on time may face early withdrawal penalties.

Lawmakers this year are expected to pursue measures that will help Americans enhance their retirement prospects.

Most people, particularly younger clients, worry that they will not be able to get their Social Security benefits by the time they retire.

Personal income is not subject to state taxes in Alaska, Florida and five other states, while 31 states do not impose taxes on Social Security benefits.

Investors are starting to take money out of their 401(k) accounts—despite taxes and penalties involved—assuming it will be replaced as markets continue to surge upward.

Tax-free withdrawals could outweigh an employer's match if early withdrawals are made for expenses like health care.

Early withdrawals from employer-sponsored plans can derail retirement, but may be necessary.

The Internal Revenue Service granted additional relief to victims of Hurricane Harvey on Wednesday by making it easier for 401(k)s and other employer-sponsored retirement plans to give loans and hardship distributions to aid victims.

Surviving spouses will either receive their own Social Security benefit or the survivor's benefit, whichever is higher. But they also may get pushed to a higher tax bracket, which. in turn, could mean higher taxes on Social Security benefits.

Make sure clients understand that a 401(k) rollover could trigger a hefty tax bill, and that liquidating assets before the age of 59 1/2 could mean a hefty penalty.

Tapping a 401(k) isn’t good idea, so it would need to be the lesser of two or more evils. And they “would have to be pretty evil evils," says an expert.

Low-cost passive index funds and sticking to an asset allocation plan even during a market downturn overcame some common pitfalls.