Latest news with #RetirementSavings
Yahoo
a day ago
- Business
- Yahoo
Dave Ramsey Slams Caller's Plan To Buy Home With Immigrant Parents, Calls It Financially Not Sustainable And A Path To Lifelong Dependence
Personal finance expert Dave Ramsey delivered tough love to a 30-year-old caller considering buying a home with her parents, warning the move could trap her in lifelong financial dependence. Caller Weighs Home Purchase With Parents Lacking Retirement Savings On Thursday, The Ramsey Show, a caller named Karina explained she had taken a second job to save for a home she planned to purchase with her parents, immigrants from Ukraine with no retirement savings. She also considered gifting her father money to start retirement investments. Trending: Would You Have Invested in eBay or Uber Early? The Same Backers Are Betting on Ramsey Pushes Back, Citing Language Barrier And Financial Risks Ramsey pushed back, calling the arrangement not sustainable and criticizing her parents' lack of financial preparation. "You're broke... and you're asking how to take care of your parents who don't even make a good enough living to save for themselves," he said. He also addressed the language barrier, noting her parents had been in the U.S. for more than 25 years. "When you've been here 25 years, it's no longer an excuse," Ramsey said, urging them to learn English to improve job prospects. Co-host Jade Warshaw warned that buying a house with them could lead to "more codependence, more enabling, more entitlement," leaving Karina's parents with no incentive to become Formula For Building Lasting Wealth In March, Ramsey told followers on X that failing to retire a millionaire if you're under 40 is "no one's fault but yours," urging older Americans to "get serious" if they're behind. Emphasizing discipline over quick wins, he said investing just $100 a month from age 25 to 65 could yield about $1.17 million, while investing 15% of the average U.S. household income could grow to roughly $11.6 million. In 2024, he explained that avoiding debt isn't just about money management but about securing control over one's future. Ramsey stresses that income is the most powerful wealth-building tool, and by keeping it free from loan payments, people can invest and build lasting wealth through financial Next: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. Photo courtesy: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Dave Ramsey Slams Caller's Plan To Buy Home With Immigrant Parents, Calls It Financially Not Sustainable And A Path To Lifelong Dependence originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
3 days ago
- Business
- Daily Mail
Inheritance tax will apply to pension pots... even if workers die before retirement as Rachel Reeves tries to fill financial black hole
Inheritance tax will apply to pension pots even if workers die before retirement age as Rachel Reeves scrambles to fill a financial black hole, according to reports. The Chancellor announced last year that retirement savings will be subject to the levy from April 2027. At present, the pots are passed tax-free to beneficiaries of a will. Under the new rules, funds could be taxed at 40 per cent, the i paper reported. HMRC confirmed to the outlet the tax will apply even if the saver had never accessed the funds. It came after reports Ms Reeves is eyeing changes to inheritance tax to help plug public finances. Policing minister Diana Johnson yesterday failed to dismiss speculation that Labour could introduce a lifetime cap limiting what a person can gift before their death. Last week, a report by the National Institute of Economic and Social Research said Ms Reeves must find up to £50billion in tax rises or spending cuts. Shadow Chancellor Mel Stride said targeting pension pots would be 'tantamount to class warfare'.
USA Today
30-07-2025
- Business
- USA Today
How to track down lost 401(k) accounts and claim your money
More than $1.65 trillion sits in lost or forgotten 401(k) accounts. The average unclaimed balance is $56,616 — a lot of money for someone to lose sight of, to be sure. Yet, it's easy to understand how it might happen. Given that workers born between 1957 and 1964 held an average of 12.4 jobs before age 54, it's no surprise that some accounts fell through the cracks. Say a person was suddenly laid off and had to relocate to another state for new employment. In the flurry of activity that comes with job hunting and moving, that former employee might forget to deal with the funds in a 401(k). If there's any chance you've left a 401(k) somewhere (no matter how small you expect the balance to be), here's how you can go about claiming it. Reach out to your former employer Locating a 401(k) may be as easy as contacting previous employers to ask if they hold any accounts in your name. If the company is out of business, contact the plan administrator. If you're unsure who your plan administrator is, search on the Department of Labor's EFAST tool, which keeps plan information dating back to 2010. Begin with the Form 5500 Series Search. Check out these three websites No matter how you feel about the internet, there's no denying that it can come in handy when you're looking for someone — or something. That includes old 401(k) accounts. The following three websites can help you home in on where your account may be and give you the tools to recover it. National Registry of Unclaimed Retirement Benefits The National Registry is a great way for current and former employees to determine if there's a retirement plan out there with their name on it. When you perform a search through its site and find retirement money belonging to you, the registry contacts your former plan sponsor or the custodian holding your retirement money. If you would prefer to contact your sponsor or custodian yourself, you're welcome to do so. There is no charge for using the site. To learn if funds are waiting for you, you'll be prompted to enter your Social Security number on the search page. If there's a match, you'll immediately be shown the names of any employer or financial institution holding retirement funds on your behalf. Once you provide the registry with your contact information, an email will automatically go out to the organization that initially registered you in the database. In the meantime, you'll be sent a Benefit Election form that lets your former employer or current custodian know how you would like to receive the funds. You decide whether you want a lump sum distribution or would prefer to roll the money over to another retirement account. Retirement Savings Lost and Found Database This database, provided by the Employee Benefits Security Administration (EBSA), is yet another way to search for unclaimed retirement funds. It is designed to help you locate lost or forgotten accounts and provide information on how to claim them. To access this site and keep your personal information secure, you must verify your identity through If you have an existing account, you may be asked to provide additional information. If not, you can set up a new account by providing: Once your identity has been verified, you'll be directed back to the Lost and Found database to search for any retirement plans associated with your Social Security number. While the website can help you find defined-contribution plans like 401(k)s, annuities or lump-sum payments due, it can't help you find individual retirement accounts (IRAs) or plans sponsored by government or religious entities. In other words, it searches for retirement benefits provided by private-sector employers or unions. The site is a good way to spark your memory, but there is one fly in the ointment: The search results only show that you participated in a retirement plan. It's possible that the money has already been rolled over into another retirement account, provided as an annuity or otherwise paid out to you. Missing Money Missing Money is another free search and filing system. When you file a claim through this site, it goes directly to the state where your property is held. is a clearinghouse for all kinds of unclaimed property, including retirement accounts. Your search begins with typing your name on the home page and waiting to see what pops up. You can search in a specific state or ask the site to check all 50 states. Once you find missing property in your name, you hover over an "info" button, and a link appears to the state that you'll file your claim through. The website is updated daily, giving you access to the latest list of lost or forgotten money. No matter which type of retirement account you're missing, recovery is possible. It all begins with calling your former employer, and if that doesn't work, conducting an online search. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
Forbes
23-07-2025
- Business
- Forbes
Boost Retirement Savings Using Catch-Up Contributions In Your 50s
Boost Retirement Savings Using Catch-Up Contributions In Your 50s Designed to bolster retirement savings, catch-up contributions give you an opportunity to fast-track your financial readiness before you actually retire. Yet many people either underutilize them or overlook them entirely. This article explores what catch-up contributions are and discusses strategies on how to use them effectively. What Are Catch-Up Contributions? These are additional amounts that individuals age 50 or older are allowed to contribute to their retirement accounts beyond the standard annual limits. Introduced under the Economic Growth and Tax Relief Reconciliation Act of 2001, catch-up contributions are intended to help individuals who may have fallen behind in their retirement savings or those who simply want to enhance their financial cushion in the years leading up to retirement. For example, in 2025, the IRS allows people 50 or older to contribute an additional $7,500 annually to their 401(k) or 403(b) plans, beyond the regular limit of $23,500. For those investing in traditional or Roth IRAs, the 2025 limits are $7,000 with a $1,000 catch-up. Making additional contributions to your retirement accounts, even toward your last working years, can significantly enhance your retirement savings, especially with compounding. To be eligible, you must turn 50 at any point during the calendar year for which you plan to make the additional contribution. This means if you turn 50 in December, you're eligible to make catch-up contributions for that entire year. Lastly, you should note that the IRS periodically changes the annual contribution limits for retirement accounts, often to adjust for inflation. Strategies To Maximize Catch-Up Contributions Review and adjust your current monthly budget to make room for catch-up contributions. For example, you can reduce non-essential expenses such as a streaming service or daily coffee runs and funnel the savings to your retirement account. When added together, small changes like these can result in up to $200 to $500 per month redirected to your retirement. If you are following a structured budget, for example the 50/30/20 rule, where 50% of income goes to needs, 30% to wants, and 20% to savings, you may adjust the ratio as you near retirement age to make more aggressive savings, say 50/10/40. Consider also evaluating larger but irregular expenses such as annual vacations, car upgrades, or high-end electronics. Delaying a $3,000 vacation or not getting the new iPhone is a small sacrifice compared to the long-term security you may gain from a well-funded retirement account. If you intentionally reallocate and adjust your budget toward catch-up contributions, you not only boost your retirement savings but also build sustainable financial habits. Over time, these contributions can compound into more savings and lead to a more comfortable retirement. Consistency is more important than intensity when it comes to long-term savings. Automating your contributions ensures that money is directed toward retirement before it is available to spend elsewhere. This pay-yourself-first strategy is especially powerful for catch-up contributions, which may otherwise be postponed or missed altogether. For example, if you are eligible to contribute a total of $31,000 (regular and catch-up combined) to your 401(k), break that amount into per-paycheck installments. Supposing you are paid biweekly, that means automatically deferring around $1,170 from each paycheck, which ensures you reach the IRS limit toward the end of the year. Doing this also effectively applies the dollar-cost averaging strategy, where you make investments at regular intervals, reducing the risk of poorly timed, lump-sum investments. You need not rely solely on your monthly income for funding your retirement savings. Periodic financial windfalls, such as year-end bonuses, tax refunds, or even an inheritance, are excellent opportunities to fund catch-up contributions. Commit a fixed percentage of any windfall to retirement savings. This way, you also reduce the temptation for luxury or impulse spending. For example, earmarking 50% of a $10,000 bonus for catch-up contributions is a great boost, and it may even reduce your tax liability, depending on your retirement account type. Starting 2025, individuals age 60 to 63 who participate in 401(k), 403(b), and governmental 457(b) plans are eligible to contribute a super catch-up contribution, by virtue of the SECURE 2.0 Act. Specifically, the catch-up ceiling is increased to the greater of $10,000 or 150% of the annual regular catch-up contribution (or $11,250 in 2025). This provision is designed to help late-career workers rapidly accelerate their retirement savings in the years immediately preceding retirement. Additionally, public sector and nonprofit employees who have 457(b) plans may qualify for the double catch-up rule, a provision that allows contributions of up to twice the standard limit within the three years leading up to their plan's normal retirement age. Consult your plan administrator to determine your eligibility and ensure compliance. For married couples, coordinating retirement strategies can substantially boost overall savings. If both of you are employed and have access to workplace retirement accounts such as 401(k)s, contribute the maximum allowed amount, including the catch-up. For 2025, that means a combined $61,000 in total contributions. And even when one spouse does not earn income, you can still take advantage of the spousal IRA. The working spouse can contribute to an IRA on behalf of their partner, up to the annual limit, including the $1,000 catch-up contribution if the non-working spouse is age 50 or older. This strategy is particularly valuable for stay-at-home parents or individuals who have paused their careers, allowing them to build retirement savings and maintain tax-advantaged growth. You may also coordinate between making pre-tax or Roth contributions, depending on projected income needs and tax liabilities in retirement. Consult a financial advisor or tax professional for further guidance. Though not traditionally considered a retirement account, an HSA is a powerful tool for those age 55 or older. Once eligible, you can contribute an additional $1,000 per year on top of the standard limits. Used for qualified medical expenses, HSAs offer triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals. After age 65, HSA funds can also be withdrawn for non-medical expenses without penalty (though still taxed as ordinary income), making them a flexible retirement source. Despite the benefits of catch-up contributions, many individuals make avoidable errors that undermine their effectiveness. For example, some people assume they can only make catch-up contributions in the year following their 50th birthday, when in fact, eligibility begins in the calendar year you turn 50. Missing that one year can mean thousands of dollars in tax-advantaged savings. Another common mistake is on how contribution limits apply across multiple retirement plans. Many workers invest in both employer-sponsored plans and IRAs but fail to coordinate contributions appropriately. While limits apply separately to different plan types, each has its own rules, and exceeding the limits can lead to IRS penalties or disallowed contributions. Understand your specific plans and seek professional guidance if necessary to ensure compliance. Other common mistakes involve not knowing the difference between Roth and traditional plans, assuming employer match applies to catch-up contributions (they usually don't), neglecting the special super or double catch-up in some plans, and not making catch-up contributions altogether. Many savers also do not review and adjust their contributions based on salary increases or inflation-adjusted IRS limits. This leads to leaving money on the table and missed growth opportunities. Catch-up contributions are most effective when implemented within a broader retirement strategy. And you don't need to do things alone. For example, a qualified financial advisor can help you determine whether pre-tax or Roth contributions make more sense based on your income trajectory tax purpose, and overall plans. They can tell you about the nuances of spousal IRAs or assist you in realigning your budget. Advisors can also identify opportunities for tax-loss harvesting, Roth conversions, Social Security optimization, estate planning, and other strategies which can enhance the impact of every dollar you save. If you think you need a financial advisor, don't hesitate to consult one. They can guide you in various aspects of your retirement and overall financial planning. Just remember to vet a potential advisor before signing with them. You can use FINRA's BrokerCheck tool or the SEC's Investment Adviser Public Disclosure website to verify their credentials, certifications, and history. Final Thoughts Catch-up contributions are some of the most underutilized tools in retirement planning. If you are 50 or older, you get an additional opportunity to increase your retirement savings. But like any other tool, their effectiveness depends on strategy, consistency, and informed decision-making.
