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Recent 401k Articles
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Contribution Limits
401k Contribution Limits
2007 $15,000 $20,500 2008 $15,500 $20,500 2009 $16,500 $22,000 2010 $16,500 $22,000 2011 $16,500 $22,000 2012 $17,000 $22,500 2013 $17,500 $23,000 Roth IRA Contribution Limits
2008 $5000 $6000 2009 $5000 $6000 2010 $5000 $6000 2011 $5000 $6000 2012 $5000 $6000 2013 $5500 $6500 Simple 401k / IRA Contribution Limits
2008 $10,500 $13,000 2009 $11,500 $14,000 2010 $11,500 $14,000 2011 $11,500 $14,000 2012 $11,500 $14,000 Site Links
401k News
401(k) Loan Default Rates: Statistics and Trends
As the U.S. economy fails to rebound to pre-recession levels, more and more Americans are taking out 401(k) loans, especially those who lost their jobs due to the financial crisis and have had difficulty finding new employment. These 401(k) loans are being used simply as a means to pay for necessities. A new study is finding that more and more Americans are defaulting on their 401(k) loans.
Brookings Institution and Navigant Economics released a study that found that Americans are defaulting $37.0 billion a year on loans taken from their 401(k)s. CNN Money, July 17, 2012. In 2008, the default rate on 401(k) loans was 9.7%. Since 2008, the default rate has almost double. In 2010, the 401(k) loan default rate peaked at 19.8% . Currently, thus far in 2012, the 401(k) default rate is 17.4%.
Americans who cannot obtain a traditional loan are taking out loans against their 401(k)s to pay for ordinary and necessary expenses just to get by.… Read More »
Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) Becomes Law
If you read our article on advantages of Roth IRA, you know that tax-free growth of earnings, tax-free distributions and flexible withdrawal rules are just some of the great benefits of having a Roth IRA. Furthermore, the fact that no minimum required distributions are required once you turn 70 and 1/2 years old is another advantage. You might therefore have tried converting your Traditional IRA or SEP/Simple IRA to a Roth IRA but may not meet the modified adjusted gross limit (MAGI) rule. The MAGI rule states that if your adjusted gross income exceeds $100,000 a year for 2008, you will not qualify for Roth IRA conversion. Also, if your status is ‘married but filing separately’, you will not qualify for Roth IRA conversion. There is where the Tax Increase Prevention & Reconciliation Act of 2005 (TIPRA) comes into play.
TIPRA Is Signed into Law
Prez. Bush signed TIPRA into law on May 17th, 2006.… Read More »