In January, Anna Brekken had finally made 120 student loan payments, the number at which borrowers are supposed to get the rest of their debt canceled under the public service loan forgiveness program. When she submitted her request for forgiveness, she looked forward to walking away from her $100,000 balance and no longer having a […]
Category: Personal Finance
Improve Your Retirement Finances By Doing Less
Sometimes normal human instincts don’t lead to the best actions. That’s a basic finding of behavioral finance research, and it’s true of a lot of retirement planning. People often believe that taking more actions is better than doing less, but doing more often doesn’t improve retirement plans and often can make them worse. For example, […]
Big savers may boost their retirement stash with this option
Many people know about their 401(k) perks, but their plan may have a hidden feature that allows for even more savings. When someone maxes out their 401(k) — $19,500 in annual contributions for those under 50 in 2021 — some plans may permit them to stash more money into their account. After-tax 401(k) contributions may […]
4 Ways to Grow $100,000 Into $1 Million for Retirement Savings
Retirement is becoming more expensive every year. With general living costs increasing, healthcare expenses skyrocketing, and financial safety nets like pensions and Social Security becoming less reliable, retirees will need to save more than ever. Saving $1 million for retirement may sound impossible, but it’s more realistic than you may think. Even if you’re not […]
What to Do If You Save Too Much for Retirement
Many Americans don’t save enough for retirement, but it’s entirely possible to save too much — at least according to the IRS. Tax laws limit how much you’re allowed to contribute to retirement accounts, and excess contributions can be penalized. Uncle Sam doesn’t want you to leave the money in the account too long, either. […]
Unemployment benefits tax refund: When the IRS will send your money and how to check
For people who collected unemployment insurance during the pandemic in 2020, the IRS has been sending federal refunds if they paid taxes on that money. This is because the American Rescue Plan added that the first $10,200 of unemployment benefits ($20,400 for married couples filing jointly) received in 2020 isn’t taxable income. Now, roughly 13 million taxpayers who paid income tax […]
Required IRA, 401(k) withdrawals would start at age 75 under congressional proposal. Here’s who would benefit
The age when older Americans must start making withdrawals from retirement accounts could change yet again. Under a provision in proposed retirement legislation pending in Congress, required minimum distributions, or RMDs, would start at age 75 by 2032, up from age 72 — which only took effect last year after the 2019 Secure Act raised […]
Should You Save Less For Retirement?
This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies. Gwen Merz was fresh out of college in 2014, working an information technology job she hated, when she decided early retirement was the answer. She socked away every dollar […]
Most workers wait years for a company’s 401(k) match to become their money
Many workers who stash money in a 401(k) retirement plan get some sort of matching contribution from their employer — it just may be a while before that money is entirely theirs. While the majority (82%) of employers that offer traditional 401(k) plans say they match a portion of their workers’ account contributions, just 28% […]
Here are some money moves to make while the Fed keeps rates near zero
The Federal Reserve said Wednesday it will keep its benchmark interest rate near zero despite signs the economic recovery is well underway. But it’s clear rates won’t stay near rock-bottom forever. Recent data showing higher consumer prices and lower unemployment will pave the way for unwinding last year’s bond buying and near-zero interest rates. Fed […]
Having trouble saving money? These strategies can help
The coronavirus pandemic put a strain on the personal finances of millions of Americans, particularly those who need to pay off debt, save for retirement and who have difficulty saving money. With continued economic uncertainty, it’s no surprise that many American men and women may be looking for more effective ways and simple tips to […]
Will the super COLA pump up the pay raise?
With the 2022 retire cost of living adjustment (COLA) heading for record territory this year, many working feds wonder (and hope) if an inflation-driven big boost for retirees will influence their January pay raise. Good question! Short answer: It could. With three months left in the cost of living adjustment countdown, the actual rate of […]