Understanding Safe Harbor 401(k) plans

When an employer sets up a Safe Harbor 401(k) plan instead of a Traditional 401(k), they create a retirement benefit program with predetermined contribution rules. By adhering to the same rules for all employees, wherever their level is in an organization- entry-level to CEO, these plans automatically can pass nondiscrimination tests (NDTs) or sometimes don’t…

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Understanding Rollover IRAs

A Rollover Individual Retirement Account (IRA) is a personal account that allows you to move employer sponsored plans like 401(k), 403(b), and 457 plans monies into it.[1] Though it has many of the same features that a Traditional IRA has; there are a couple of key differences: Some employer sponsored plans only accept money from…

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Understanding Inherited IRAs

Inherited Individual Retirement Accounts (IRAs) are opened when someone inherits an IRA or employer sponsored account after the original account holder’s death. Though you can inherit an account from anyone, be it a spouse or not, the rules for these accounts are different depending on your relationship with the decease. Regulations on these accounts have…

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Understanding Custodial Accounts

There are two types of custodial accounts: the Uniform Transfers to Minors Act (UTMA) account and the Uniform Gift to Minors Act (UGMA) account. A custodial account is designed to hold and protect assets for minor beneficiaries. These accounts are set up by a donor (usually a child’s parent/s) so that the donor, another adult,…

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