Employers are allowed under the Pension Protection Act of 2006 to place contributions in default options such as a target-date fund, a balanced fund or a managed account.Wall Street Journal - Eastern EditionMAXEYDAISY
You can contribute to both a Roth IRA and an employer-sponsored retirement plan, such as a 401(k), Simplified Employee Pension (SEP), or Savings Incentive Match Plan for Employees (SIMPLE) IRA, subject to income limits. However, each type of retirement account has...
Under a SEP IRA, an employer must make discretionary contributions to all eligible employees regardless of the employee's wishes. Employer contributions are "free money" – contributions aren't part of a salary or included in the employee's taxable income the year of contribution. In addition, ...
Traditional IRAs help you build a retirement nest egg by allowing account holders to make tax-deductible contributions. “You can deduct IRA contributions from your taxes in the year you contributed, which reduces your taxable income,” explains Reddy. The money in this type of account is also...