Should your business add Roth contributions to its 401(k)?

Offering employees a retirement plan is a great incentive for retaining employees and for recruiting new ones. If you don’t already offer a plan for your employees, an available tax credit may make it something worth considering. If your business does sponsor a 401(k) plan, you might someday consider adding designated Roth contributions. Here are […]

A nonworking spouse can still have an IRA

It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer has compensation. However, an exception involves a “spousal” […]

Contribution limits for 401(k) plans increasing in 2020; IRA limits remain the same

The contribution limits for employees with 401(k), 403(b) and most 457 plans will increase in 2020 from 19,000 to $19,500. The catch-up contribution limit for employees 50 and older who participate in these plans is increased from $6,000 to $6,500. The income ranges for determining eligibility to make deductible contributions to traditional IRAs and Roth […]