Tuesday September 29, 2020
News
401(k) Retirement Plans
The 401(k) is rapidly becoming the most popular qualified retirement plan. More than 90% of large companies now offer a 401(k). With a 401(k), each employee has an individual account and is permitted to transfer a portion of his or her salary directly into the account each year.
Most 401(k) plans qualify for excluding the contribution from your taxable income each year. However, some employers have created a "Roth 401(k)" plan in which after-tax contributions are made.
To encourage employees to fund a 401(k), some employers also create a...MORE
IRS Highlights Tax Credits to Encourage Employment
The Bureau of Labor Statistics reported the latest employment data in a news release on September 23, 2020. Unemployment in America rose from 4% in February 2020 to over 14% in April due to COVID-19 shutdowns. Since April, the unemployment trend has decreased. The rate in August 2020 declined to 8.4%. The number of nonfarm employees increased by 1.4 million in August.
Many individuals changed from office to telework in March 2020. Over 24% of employed individuals teleworked during August. However, there were still 24 million individuals who were not working because their employer closed down or reduced staffing due to the pandemic.
The August increase in employment is due in part to tax credits included in the...MORE
Should I Buy Long-Term Care Insurance?
My wife and I have thought about purchasing a long-term care insurance policy, but we hate the idea of paying expensive monthly premiums for a policy we may never use. Is there a good rule of thumb on...MORE
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