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Keogh plan
We’ll cover employer-sponsored plans, individual retirement accounts, and plans for self-employed individuals and small business owners.
401(k)
A 401(k) is the most common type of employer-sponsored retirement plan. Your employer preselects a few investment choices and you defer a portion of each paycheck to the account. If you leave your job, you may take your 401(k) funds with you or leave them where they are.
In 2020 and 2021, you can contribute up to $19,500 to a 401(k), plus an additional $6,500 if you re 50 or older. Some employers also match a portion of employee contributions. With few exceptions, you cannot withdraw funds from your 401(k) before 59 1/2 without penalty.
Probably the last thing you want to think about when you’ve just filed your taxes for 2020 is your 2021 taxes. Even if your prep for the past tax year went well, it’s nice to not worry about taxes for a while. But as the overused cliché goes, income tax preparation should be a marathon, not a sprint. It’s something you should be thinking about and planning for year-round.
Now is the perfect time to start, while this past year s tax issues are still fresh in your mind. After all, your current financial activities will impact your returns next spring. And you want them to have the right kind of impact, if possible. Note that if you
MARTINEZ: Which retirement plan is right for your business? thetimestribune.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thetimestribune.com Daily Mail and Mail on Sunday newspapers.
7 Steps to Take Now to Catch Up on Retirement Savings
Even if your finances weren’t devastated by the pandemic recession, many Americans have not yet started saving. Here’s what you can do.
Joni Ratts at her home in Nipomo, Calif. Ms. Ratts needed to reorganize her finances after a difficult divorce. Credit.Jenna Schoenefeld for The New York Times
By John F. Wasik
May 8, 2021, 5:00 a.m. ET
For millions of retirement savers, the pandemic was a gut punch. There was the jarring stock market drop in March 2020, then millions lost their jobs, health insurance and ability to fund their savings. It was a financial catastrophe for many Americans and they may not recover for years.