Pensions & Other Retirement Accounts

December 23, 2024Catch-up contributions, which are additional sums that individuals aged 50 and above can make beyond the standard limit, serve as a significant boon for those nearing retirement. However, their applicability varies across different retirement savings options. SEP IRAs, introduced in 1978, have been a popular choice for small business owners and self-employed individuals due to… read more…

September 29, 2023A personal pension plan is a type of long-term savings scheme where individuals contribute funds that are invested to provide income upon retirement. Unlike workplace pensions, personal pensions are managed by the individual, giving them full control over their retirement savings. It’s a powerful instrument to create a financial safety net for the future, ensuring… read more…

August 10, 2023A pension buyout can be a tantalizing offer from your employer, one that offers either a lump sum or annuity, and in return, you relinquish your claim to future pension payments. It’s a move often employed by companies to cut down expenses and lessen long-term liabilities, turning these into immediate advantages such as reducing administrative… read more…

September 7, 2023Once upon a time, retirement in America was referred to as “a three-legged stool.” The first leg was your expected Social Security benefits, the second leg was your own personal savings and the third was something old-timers called a pension.… read more…

March 31, 2023If you’re looking for more variety when it comes to investing for retirement, you might consider a self-directed IRA (SIDRA). Self-directed IRAs allow you to invest in the usual suspects—stocks, bonds and mutual funds—but you can also use them to… read more…

June 12, 2025A divorce is an unfortunate time in anyone’s life, as it signifies the end of a likely long-term relationship and marriage. However, it’s important to understand the financial ramifications of a divorce as you’re going through one. So if you’re… read more…

September 10, 2025If you work for a public school or some kind of non-profit organization, you may have access to a 401(a) or a 403(b) plan. Both are retirement savings vehicles that offer major tax breaks. However, they are structured a bit… read more…

May 19, 2025Once a pension has vested, you should be entitled to keep those funds, even if you’re fired. However, you aren’t always entitled to all the money in your pension fund. In some cases, you might lose some, or even all,… read more…

January 5, 2023If you worked in a job with a pension, this means you will receive ongoing benefits once you retire. A critical part of estate planning, then, will be figuring out what happens to that money when you die. The answer… read more…

October 20, 2025When your pension matures, there are multiple distribution options that you can choose from. Unfortunately, many of these distribution methods result in a tax liability that reduces your payout. However, you can avoid taxes on a lump sum by rolling… read more…

July 6, 2022Most retired workers depend on multiple streams of income during their retirement. Two of the most common such income streams are Social Security and pensions. If we look at pension vs. Social Security income, we find significant differences. Retired workers need to understand the key differences between the two programs. They are funded, structured and… read more…

September 6, 2023A pension risk transfer (PRT) occurs when a company ends its pension program. Usually in the process it tries to stop paying its existing benefits under pension programs for past and present employees. While it’s illegal for companies to unilaterally rescind pensions that employees have already earned (whether current workers or retirees), there are several… read more…

August 1, 2025A pension plan promises to pay a defined benefit for the length of an employee’s retirement. Depending on your financial circumstances, you may consider taking a lump sum instead of a lifetime monthly payment. Let’s take a closer look at… read more…

April 16, 2025When an unexpected expense comes up, you might consider borrowing from your retirement account. Most qualified retirement plans, including 401(k) and 403(b) accounts, allow employees to borrow from their savings. These loans must be repaid with interest. Borrowing from a retirement account is a big decision, though, potentially impacting your long-term financial outlook. Consider both… read more…

March 30, 2022Cryptocurrency can add diversification to your portfolio. Your brokerage may allow you to trade digital currencies through a taxable account but you could also use a self-directed IRA to invest in crypto for retirement. A self-directed IRA doesn’t follow the same rules as a traditional or Roth IRA. If you’re considering a self-directed IRA for… read more…

March 19, 2025Surviving spouses are not the only ones eligible for survivor benefits—also known as a widow’s pension—under the 1939 amendments to the Social Security Act. Other parties close to the deceased may also be able to claim Social Security benefits on their record. The Social Security Administration sets specific rules for widow’s pension payments. Below is… read more…

July 31, 2019The Pension Protection Act (PPA) of 2006 was signed by President George W. Bush on August 17, 2006. The PPA is the most significant legislation having to do with pension plans since the Employee Retirement Income Security Act of 1974 (ERISA). The PPA looks to strengthen the traditional private pension system by offering incentives to… read more…

August 5, 2025A 401(k) is the most common type of employer-sponsored retirement plan, but certain employees may have access to a 414(h) plan instead. A 414(h) plan, also called a pick-up plan, offers people who hold government jobs a tax-advantaged way to… read more…

August 13, 2025We all know that saving for retirement is a good thing. We often think of retirement savings in terms of a percentage of our paychecks, but what about when someone doesn’t work? The IRS has a solution that allows a… read more…

August 24, 2023From a retiree’s perspective, the biggest risk with defined benefit retirement is that you are at the mercy of your former employer. That could put your retirement at risk if the employer or its pension fund runs into trouble. The… read more…

March 6, 2025A lump sum pension payout allows retirees to receive their entire pension balance upfront rather than in ongoing monthly payments. This option provides flexibility, enabling individuals to invest, spend or manage their funds as they see fit. However, taking a lump sum means assuming responsibility for financial planning, tax implications and potential market risks. In… read more…

January 30, 2025A 457(b) plan is an employer-sponsored, tax-deferred retirement savings vehicle available to some state and local government employees. It works like a 401(k) in that employees can divert a portion of their pay to their retirement account. This provides an immediate tax… read more…

December 11, 2024A nondeductible IRA is a retirement plan you fund with after-tax dollars. You can’t deduct contributions from your income taxes as you would with a traditional IRA. However, your non-deductible contributions grow tax-free. Many people turn to these options because… read more…

December 23, 2022A retirement system is a network of pension plans that states use to help public employees save for retirement. Each state has at least one retirement system and an organization that administers the program. The systems vary greatly from state… read more…

January 21, 2023A retirement system is a pension plan that a state or other local government uses to help its public employees save for retirement. The systems requires members to contribute during their careers so that when they retire, there is a… read more…