Service Description

401k, 403b, 457b & Rollover Services 401k A 401(k) plan is a workplace retirement account that's offered as an employee benefit. The account allows you to contribute a portion of your pre-tax paycheck to tax-deferred investments. This reduces the amount of income you must pay taxes on in that year. For example, you'd be taxed on $70,000 if you earned $75,000 and contributed $5,000 to your 401(k). Investment gains grow tax deferred until you withdraw the money in retirement. If you withdraw funds from the plan before age 59 1/2, however, you could pay a 10 percent penalty and the withdrawal would be subject to federal and state income taxes. Some plans offer 401(k) loans, however, if you find yourself in a cash emergency. Investment choices for these types of plans are often limited, and management and administrative fees can be high. The IRS imposes contribution limits per year, although limits for 401(k) plans are more generous than those for other plans: $19,000 in 2019, up from $18,500 in 2018. This increases to $25,000 if you're age 50 or older. 403b and 457b plans Both plans are similar to 401k. 403b is for non-for-profit employees. 457b are for government workers, no withdrawal penalty and have better catch up contributions. Rollovers You can only move your current or past employer's 401k to a Rollover account. If you are a job-changing employee and find yourself in this situation where you have to decide what to do with an old retirement plan, make sure you take your money with you by creating a HYA Rollover Account.

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