RETIREMENT PLANNING » IRA & ROTH ACCOUNTS

Since 2006, those who fund their retirement portfolios through their company have a new option: Roth 401k plans. These plans are a great way for higher-earners to contribute to their long-term savings plan as there are no salary limits. Contributions to a Roth 401k plan are made after taxes, and there is no future tax penalty upon withdrawal as long as some basic Roth 401k rules are followed.

Before you choose to participate in Roth 401k, you should know this:

• Contributions to a Roth 401k are made after taxes
• Those who have had their Roth 401k for more than five years and withdraw their money after they are age 59 1/2 will not be subject to any additional taxes
• There are noincome conditions for Roth 401k participants
• Like traditional 401ks, the maximum contributions that a participant can make are set by the Government, for 2008 the limit is $15,500
• The maximum that an employer can contribute to a 401k plan in 2008 is100% of your salary or $46,000
• If your employer offers a Roth 401k contribution match, the money they add will be in a traditional 401k, thus providing you with two 401k plans
• Loans against your Roth 401k plan are treated very much like a traditional 401k loan
• If by age 70 1/2 you have not rolled over your Roth 401k plan into a Roth IRA you will have to take a required minimum distribution
• Generally the rules to a Roth 401k plan are similar to traditional 401k plans in relation to 403(b) plans
• Roth 401k were originally going to expire in 2010, but 2006 legislation passed making it a permanent option

Times are getting exceptionally tough, financially for many people, and many are feeling that their options for financial protection are becoming increasingly limited as credit continues to dry. Many are way past due on their mortgage, collection agencies are calling daily to get their money, and the future is looking increasingly bleak - financially. Many people feel that the only way out is to file foreclosure, however, there is a concern about the assets that you could lose by following through with this process. A question that comes to mind is if your 401k will be protected in bankruptcy.

Rest ashore, your 401k is not affected by bankruptcy. While creditors can access your other assets to liquidate so that they can cover their lost - The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 - which was effective on October 17, 2005 - prevents them from accessing your 401k investments.

If you have a 401k retirement fund , you have probably been spending a lot of time recently stressing about it. The economy is in a tailspin and many people are seeing the funds in their 401k plans really drop in value. To make matters worse, many people are losing their jobs all over the country...

If you have a 401k and are about to move to another job or now unemployed - then you may be wondering what you should do with the money in your 401k. Your options could include leaving your money in your current 401k plan if your soon-to-be-former employer allows it. You could also transfer it...

As you approach retirement you want to make sure that your investments will behave as they should to support your quality of life, as well as making those inheriting your estate not have to deal with additional unsavory issues. CDs are an excellent way to line your portfolio base as it is...

As Congress talks about the flaws inherent in allowing the 401k to be the primary vehicle for retirement savings, investors are showing amazing patience as market prices continue to fall . According to top investment firms like Charles Schwab and Fidelity Investments, even though the Dow Jones...

There are many ways you can claim investments on your tax return as a way of reducing the tax you owe , but what is allowed and how much of it you can deduct depends on the type of investment.

If you make investments in things such as furniture used for business, you deduct that expense right off...

Most 401(k)s are offered through companies as a benefit to employees, since 401(k)s are ultimately cheaper for the company than the more traditional pension. As an added incentive, companies will contribute to their employees' plans, usually by determining a certain percentage based on how much...

If you have a 401k retirement account, you can add more money to it once a month, by changing the amount of your monthly salary you want committed to the 401k, until you reach the yearly maximum . You are not allowed to contribute to your 401k through other means, such as writing a check, or...

People who have 401k plans may make both pre and after-tax contributions to them, but only in a very narrowly defined way which is fairly complicated .

When you open a 401k account, you can make either pre or after-tax contributions. Pretax contributions will result in a short-term financial...