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401(k) Loans

I am frequently asked about the advisability of taking a loan from your employer retirement plan. Yes, you can borrow from your 401(k). Yes, it is easy money to access.  Typically, the minimum loan amount is $1,000 and the maximum loan amount is no more than $50,000 or 50% of your vested account balance, whichever amount is greater.   Some employer plans will allow employees to have multiple loans outstanding at the same...

Long Term Care

As we age, our physical condition may deteriorate.  It may become more difficult or even physically impossible to perform our day to day living activities. Activities such as dressing, bathing, mobility, transferring from one position to another, toileting may require assistance.  These activities are known as ADLs: Activities of Daily Living. In many situations, the ability to perform these activities is limited as a...

Converting Retirement Accounts to Roth IRAs

In 2010, income tests were removed which prevented many individuals from converting other retirement accounts to Roth IRAs. Many more people are now eligible to move existing retirement money into Roth IRAs. Key points of this conversion are: Amounts converted are subject to taxes. All future growth on the converted amounts will be tax free provided certain circumstances are met. The money must be in the account at least 5...