Important RMD Changes for 2021 - 401k Maneuver

Important RMD Changes for 2021 – 401k Maneuver

There are important RMD changes for 2021 that every 401(k) investor needs to know about to avoid penalties.  Required minimum distributions (RMDs) are IRS-mandated withdrawals from retirement accounts.  The IRS requires these withdrawals to ensure that taxes are paid on amounts that were contributed on a pretax basis, plus any tax-deferred earnings in those accounts…

Should You Make Roth or Traditional 401K Contributions?

Should You Make Roth or Traditional 401K Contributions?

I get lots of questions from readers about whether or not they should take advantage of their Roth 401(k) (or 403(b)) option. They’re usually looking for an easy, straightforward answer. Unfortunately, it isn’t that easy. I only have one rule of thumb, and that’s that residents (and military docs) should make Roth contributions and attendings…

7 Disposable Income Mistakes to Avoid - 401k Maneuver

7 Disposable Income Mistakes to Avoid – 401k Maneuver

If you have income left over after paying taxes, it’s important to avoid common disposable income mistakes. However, there is a big difference between disposable income and discretionary income. Disposable income is your personal income minus your current personal taxes. For example, if you make $60,000 a year and pay 20% in federal, state, and…