SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I’m 77 years old and I requested my 401(k) fund administrator to prepare my RMD. I was told I do not have to withdraw my money if I am still employed. Please confirm if this in fact an IRS rule or that of the fund management company? -Bea That is correct, Bea. If you are still employed, you do not have to take a required minimum distribution (RMD) from your current 401(k) regardless of your age, as long ...

Key Points - The article discusses important changes in retirement savings plans as 2026 approaches, focusing on IRA, 401(k), and HSA limits, as well as implications for higher earners [1] Group 1: IRA Changes - IRA contribution limits will increase in 2026, allowing savers under 50 to contribute up to $7,500, while those 50 and older can contribute a total of $8,600, which includes an $1,100 catch-up contribution [2][3] Group 2: 401(k) Changes - 401(k) contribution limits will also rise in 2026, with the maximum contribution for savers under 50 increasing to $24,500, and for those 50 and older, the total allowable contribution will be $32,500, including an $8,000 catch-up contribution [4] - A new super catch-up option will allow savers aged 60 to 63 to contribute an additional $11,250, bringing their total limit to $35,750 [5] - Starting in 2026, higher earners (those earning over $145,000) will only be able to make 401(k) catch-up contributions through a Roth 401(k) [6] Group 3: HSA Changes - HSA contribution limits will increase in 2026, allowing individuals with self-only coverage to contribute up to $4,400 and those with family coverage to contribute up to $8,750. Additionally, individuals aged 55 and older can make a $1,000 catch-up contribution [9]

Group 1 - The article emphasizes the importance of maximizing contributions to tax-advantaged accounts such as HSAs, IRAs, and 401(k) plans to benefit from tax breaks [1][3] - In 2026, the maximum contribution limits for HSAs will increase, with $4,400 for self-only coverage and $8,750 for family coverage [7][11] - Individuals aged 55 and older can contribute an additional $1,000 as a catch-up contribution to their HSA [4] Group 2 - It is advised to avoid treating HSAs as regular spending accounts, as the funds can grow tax-free if left untouched [5][8] - Eligibility for HSAs can change annually based on health plan rules, and individuals should verify their eligibility before contributing [9][10] - Funding an HSA when not eligible can lead to tax penalties, highlighting the need for strategic management of HSA accounts [10]

President Donald Trump has proposed the idea of sending U.S. citizens who meet a certain income limit a $2,000 dividend refund check from tariff revenue. If the checks were to be sent in 2026, the extra money could help with living expenses, but if your living expenses are covered, you could also invest that extra money into assets. That way, your money can compound over time. Read More: 3 Safest Investments To Hold In The Current Trump Economy Find Out: How Middle-Class Earners Are Quietly Becoming Milli ...

A 401(k) is designed for retirement savings, so you’ll often face IRS penalties if you withdraw funds before age 59 1/2. In addition to a potentially hefty tax bill, your money will miss out on the potential to grow since it’s no longer invested. We’ll take a deep dive into 401(k) withdrawals and 401(k) loans in this article. You’ll learn the rules and the differences between withdrawals and loans, as well as how a 401(k) loan or withdrawal can affect your retirement planning. Learn more: What is a 401( ...

Core Points - The IRS mandates required minimum distributions (RMDs) from retirement accounts starting at age 73, impacting tax-advantaged accounts like IRAs and 401(k)s [3][4] - RMDs are calculated based on the account's value and the account holder's age, with specific withdrawal amounts required annually [4][5] - Inherited retirement accounts also have RMDs, which must be withdrawn within a certain timeframe, typically 10 years [6] Group 1: RMD Rules and Requirements - RMDs apply to pre-tax retirement accounts, excluding Roth IRAs and, starting in 2024, Roth 401(k)s [3] - Each qualifying account requires its own minimum withdrawal, meaning multiple accounts lead to multiple RMDs [4] - For example, a $500,000 IRA would require a minimum withdrawal of $18,867 by the end of 2025 [5] Group 2: Managing RMDs - RMDs should not simply be deposited into a checking account; instead, they can be strategically managed for growth [7] - Options for managing RMDs include transferring funds into safer investments like certificates of deposit (CDs) or Treasury bonds to mitigate risk and combat inflation [7]

There are several good ways to set yourself up for a comfortable retirement. One of the best is to regularly contribute to a 401(k). These tax-advantaged accounts allow you to grow your income over the course of your career and then live off a steady income stream in retirement. Learn More: Suze Orman Calls This $1.6 Million 401(k) Rollover Move ‘Crazy’ — What She Recommends Instead Read Next: 5 Clever Ways Retirees Are Earning Up To $1K Per Month From Home If you contribute to a 401(k) or are considering ...

Many Americans take a set-it-and-forget-it approach to their 401(k) contributions, so they may be missing out on a powerful retirement savings tool that could save them thousands in taxes. Find Out: Suze Orman Calls This $1.6 Million 401(k) Rollover Move ‘Crazy’ — What She Recommends Instead Read Next: 6 Things You Must Do When Your Savings Reach $50,000 “If you have a retirement plan through work, chances are your employer offers a great option,” money expert Suze Orman shared on LinkedIn. “Yet, for reas ...

Core Insights - Retirement account balances have reached record highs in Q3 2025, with average 401(k) balances increasing by 9% year-over-year to $144,400 and average IRA balances rising by 7% to $137,902 [1][2] Group 1: Retirement Account Trends - There is a growing interest in Roth 401(k)s and IRAs, especially among younger savers, with Roth 401(k) contributions capped at $24,500 for 2026 [2][4] - The number of 401(k) accounts with balances of $1 million or more has increased to 654,000, a 10% rise from Q2, while IRA millionaires reached 559,181, up 11.5% from the previous quarter [6] Group 2: Savings Behavior - Despite market volatility, the majority of retirement savers continued to contribute, maintaining an average contribution rate of 14.2%, close to the recommended 15% [7] - Positive savings behaviors among younger workers, particularly Gen Z, have contributed to improved retirement outcomes [5][6] Group 3: Market Performance - U.S. markets experienced significant pressure due to country-specific tariffs announced in April, but rebounded in Q2 and Q3, with the Dow Jones up 9%, S&P 500 up 14%, and Nasdaq Composite up 17% through September 30 [8]

Core Insights - Investing in a 401(k) is straightforward for employees of companies that offer such plans, with options for automatic enrollment and potential employer matching contributions [1][2] Group 1: Advantages of 401(k) - The 401(k) plan provides ease of investment, tax benefits, and employer matching contributions, making it an attractive option for retirement savings [2] - The contribution limit for a 401(k) is set at $24,500 for 2026, with higher limits for older individuals due to catch-up contributions [4] Group 2: Disadvantages of Maxing Out 401(k) - Attempting to max out a 401(k) can lead to neglecting other tax-advantaged accounts like IRAs, which may offer better investment opportunities [5] - A lack of diversification in retirement plans can be detrimental, as 401(k) plans typically have fewer investment options compared to IRAs, which allow for a broader range of investments [6][7] - Limited flexibility in tax break claims is another downside, as traditional 401(k) contributions are made pre-tax, potentially missing out on the benefits of tax-free withdrawals from Roth accounts [8]