Pros & Cons Of Opening A Flexible Spending Account
Posted: November 28, 2020
Flexible spending accounts (FSAs) are associated with employer-sponsored health insurance plans. They allow you to divert a tax-deferred portion of your earnings into the account, which you can use to pay for certain healthcare-related expenses, including copayments and deductibles, and dependent-care costs. Money in an FSA must be used by the end of the plan year. However, employers may offer a grace period of up...
How Does My 401(k) Get Invested?
Posted: November 13, 2020
A 401(k) is a tax-deferred, employer-sponsored retirement savings plan that allows you to save and invest a portion of your paycheck. Your employer may contribute matching funds to your 401(k) account. The company may offer a choice of investment options, but you control how your 401(k) money is invested. What Are the Common 401(k) Investment Options? Employees can typically choose from a spread of mutual...
Traditional IRA Vs. Roth IRA
Posted: October 28, 2020
“IRA” is an abbreviation for “Individual Retirement Account.” A traditional IRA and a Roth IRA are two different retirement options, each with its own pros and cons. Depending on your circumstances, either may be a good choice for growing your retirement dollars. What Is a Traditional IRA? A traditional IRA is a retirement account for pre-tax contributions. The funds in the account can be used...