Your net worth may not be something you think about very often. But if your goal is to retire securely, it's important to work on growing not just your 401(k) or IRA balance, but your net worth. A 2022 Aspen Institute report found that about 13 million Americans, or 10.4% of U.S. households, had a negative net worth. Clearly, these statistics are a bit dated, but they're based on an analysis of Federal Reserve data that only comes out every few years. Where to invest $1,000 right now? Our analyst team jus ...

If you're making steady contributions to your employer's 401(k) plan, you're doing a very good thing for your retirement. Social Security will only replace about 40% of your pre-retirement paycheck if you earn an average wage. Most seniors need a lot more money than that to cover all of their expenses, so it's important that you build up retirement savings on top of those benefits. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, wh ...

The IRS is changing how Americans can make catch-up contributions to their workplace retirement accounts, which could have significant implications for retirement planning and budgeting. A new rule took effect at the outset of 2026 that altered how high-income earners make catch-up contributions to their workplace 401(k) retirement plan, as those over the age of 50 whose earnings subject to payroll tax are $150,000 or more must make catch-up contributions to a Roth 401(k). The change, which was required ...

Millionaires are multiplying inside America's 401(k)s, and headlines are throwing a party. But buried beneath the celebration is a less glamorous stat: the average balance is still barely over six figures. Fidelity's latest report, released in September, shows a record-breaking 654,000 accounts now hold over $1 million, a nearly 10% jump from the previous quarter. It's the highest number ever recorded. Yet despite the surge, the average 401(k) balance sits at just $144,400—a record in its own right, but ...

Key Takeaways A 2025 study found that more than half of 401(k) plans from 2009 to 2013 offered consumers at least one investment fund option that shared revenue with the plan's administrator. Those plans had higher hidden costs, which can add up to thousands in lost value by the time you retire. Do you really know how your 401(k) plan is invested? If not, you might be putting your money in costlier mutual funds and not know it, new research suggests. Researchers analyzed the 1,000 largest 401(k) ...

Core Viewpoint - The focus of retirement planning should shift from net worth to savings, as net worth does not accurately reflect spendable cash for retirement [1][6]. Summary by Sections Understanding Net Worth - Net worth is calculated as total assets minus total debts, which may not represent liquid funds available for retirement [3][6]. - For example, a person with $1 million in assets and $200,000 in mortgage debt has a net worth of $800,000 [3]. Limitations of Net Worth - Not all assets are easily convertible to cash; for instance, home equity cannot be accessed without selling the home or borrowing against it [4]. - Accounts such as IRAs, 401(k)s, and brokerage accounts are more relevant for retirement funding as they can be liquidated or provide income through dividends [5][8]. Importance of Savings - Savings accounts and retirement accounts are crucial for determining retirement readiness, as they represent money that can be used to cover expenses [8]. - The value of a home can fluctuate, impacting net worth; for example, a home valued at $500,000 with a $200,000 mortgage results in a net worth of $800,000, but if the home value drops to $400,000, net worth decreases to $700,000 [9][10].

Core Insights - Tax-deferred accounts such as traditional IRAs and 401(k) plans allow workers to postpone tax payments on contributions, enabling pre-tax savings, with taxes due on withdrawals and gains in the future [2] - Required Minimum Distributions (RMDs) must begin at age 73 for tax-deferred account holders, calculated based on the account balance from the previous year divided by a life expectancy factor [6][9] - Roth accounts are exempt from RMDs while the original account holder is alive, but beneficiaries must adhere to RMD rules [5] Account Types and RMDs - RMDs apply to various retirement accounts including Traditional IRAs, SEP IRAs, SIMPLE IRAs, Traditional 401(k), Traditional 403(b), and 457(b) plans [7] - The first RMD can be delayed until April 1 of the following year, while subsequent RMDs must be completed by December 31 [5][8] RMD Calculation and Penalties - For a 73-year-old with a $250,000 balance in a traditional IRA, the 2026 RMD will be $9,434 [6] - The penalty for failing to withdraw the RMD on time is a 25% excise tax on the amount not withdrawn, which can be reduced to 10% if corrected within two years [10]

Contributing to an IRA can make your retirement years more comfortable, but it can also lower your tax bill for the year you contribute. To deduct your IRA contributions, you need to have a traditional IRA instead of a Roth IRA. Additional restrictions apply based on your income and whether you or your spouse are eligible for a retirement plan through work. Read on to learn the rules for deducting IRA contributions. We’ll cover when you can take the deduction, how much you can deduct, and a few other fact ...

Key Takeaways Contribution limits for 401(k)s and IRAs are higher in 2026, allowing many savers to set aside more money for retirement. Savers ages 50 and up face new catch-up contribution rules in 2026, including higher limits and Roth requirements for some high earners. HSAs have higher contribution limits this year as well, both for self-coverage and family-coverage scenarios. Making the most of retirement savings requires that investors keep track of annual changes put forward by the IRS. Ann ...

As Americans live longer, retirement planning has become more critical than ever. Yet many Gen Xers — those born between 1965 and 1980 — worry their savings won’t last the two to three decades they may need it to. A recent Nationwide Financial survey found that 25% of Gen X investors believe their savings will run out in 14 years or less, and more than 1 in 10 say their nest egg is already dwindling. Here’s why Gen X faces a retirement shortfall — and what steps they can take now to bridge the gap. Why ...