Frequently Asked Questions

While it is usually preferable to save as much as possible for retirement, you should do so within your means.

There are two types of 401(k)s: traditional and Roth. The main difference between the two types are the way taxes are handled.

Required minimum distributions, or RMDs, are government mandated withdrawals that begin to affect 401(k) and IRA owners and their beneficiaries when they reach a government-mandated age or at death. Those that inherit a 401(K) or IRA from a deceased party may also be subject to RMDs depending on the type of account they inherit, the age of the decedent, and whether RMDS have already been taken. This is a highly complex subject and should be discussed with a qualified tax professional before beginning to take withdrawals.

A 401(k) is an employer-sponsored retirement savings account, which gives employees the option to contribute a percentage of their salary or a certain dollar amount.

An individual retirement account (IRA) is a tax-advantaged investment vehicle set up at a financial institution that allow you to make investments to help save for retirement.

A rollover is when you move assets from one eligible retirement plan (a 401(k), for example) into a new or existing tax-advantaged retirement account. Many people may elect to roll over a 401(k) when they retire or leave their employer.

It is prudent to discuss any IRA withdrawal strategy with a tax adviser beforehand as individual circumstances can vary.