Articles by Jaiya

📝 The government requires companies offering 401k plans to keep things fair for all employees. This ensures that highly paid employees (like executives) don’t get much better retirement benefits than regular employees. Each year, companies must run tests to prove that the retirement benefits and contributions are relatively equal between these two groups of employees:  Highly compensated [...]

Looking to open a Solo 401k plan? Get started today with just a few clicks – The Carry Solo 401k Plan is a featured-packed self-directed account that lets you invest in both traditional and alternative assets, take out a loan, or do a Mega Backdoor Roth conversion with a few clicks. Roth retirement accounts have a [...]

OVERVIEW A Traditional IRA is a type of individual retirement account available to anyone with earned income. There are no age or income limits. Contributions to a Traditional IRA are made with pre-tax dollars, and you get a tax-deduction each year you contribute. Investments grow tax-deferred until retirement, and you pay regular income taxes when you take [...]

If you’re a W-2 employee, your employer may offer a SEP IRA instead of a traditional  401k plan. But unlike a 401k where you can make your own employee contributions, a SEP IRA allows only employer contributions. You can’t contribute directly to the account. A SEP IRA is often chosen by small businesses as a simpler, [...]

401K BASIC WITHDRAWAL RULES You must be at least at least 59½ years old to start taking distributions without a 10% penalty. To withdraw from a Roth 401k, you must be at least 59½ years old and your Roth 401k account must be at least 5 years old. Early withdrawals are subject to a 10% penalty, plus income [...]

OVERVIEW 401k loan interest rates: The interest rate for a 401k loan is prime rate plus an additional one or two percent. 401k loan fees: Your plan provider may charge origination and maintenance fees totalling between $75 to $150. 401k loan taxes: 401k loans lead to double taxes. There is no tax for taking a 401k loan. However, repayments must be [...]

Retirement accounts like a 401k or Solo 401k allow you to take out a loan from your account. Unfortunately, there’s no such thing as an IRA loan. However, there are work arounds that allow you to temporarily access your IRA funds that work similarly to taking out a loan. With a 401k loan, you’re allowed to [...]

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The SIMPLE IRA has slightly different withdrawal rules than other retirement plans. Much of it works the same way, but there’s an extra provision that prevents withdrawals from the account within two years of opening it. .wpj-jtoc.--jtoc-theme-basic-light.--jtoc-has-custom-styles { [...]