An employee stock ownership plan (ESOP) is a qualified defined-contribution employee benefit plan that provides the employees of a business an ownership interest in that business. An ESOP is used by employers to either reward employees or as an exit strategy from business ownership. If owned by an ESOP, the business can receive great tax…
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Roth IRA vs. Traditional IRA: Differences & How to Choose
The biggest difference in a Roth vs. Traditional IRA is that Roth IRA contributions are taxed upfront instead of at the time of being withdrawn. Both accounts have the same contribution limits, investment options, and providers. However, Roth IRAs are better if you plan to make more money at retirement age than you do now….
Rollover IRA: Rules, Limits & Deadlines
A rollover individual retirement account (IRA) is established with funds that are rolled over from another IRA or 401(k). Rollover IRAs are used by investors who want to change IRA providers. If you want to change providers or get more investment options, an IRA rollover is a free process that’s ideal for getting access to…
How to Find a Financial Advisor That’s Right for You in 7 Steps
A financial advisor is a licensed professional who helps clients build and execute financial plans based on their individual needs. It’s important to identify your needs before choosing a financial advisor because they typically serve a variety of functions. There are seven steps to help you find the right financial advisor that can meet your…
6 Best Robo Advisors 2018
A financial robo advisor is a service provider that manages portfolios using strategies that trade and rebalance investments automatically. Robo advisors are best for passive investors who want cost-efficient ways to invest in a wide range of investments. We examined more than a dozen of the most popular robo advisors to identify the best robo…
Top 25 Investment Strategies for Small Business Owners
As a small business owner, it’s important to understand how to invest your capital wisely and how to diversify your funds to attain financial stability in your personal life. We spoke with 25 experts who shared different investment strategies to help you grow your business and achieve a healthy financial future. Below are the 25…
Roth 401(k): Rules, Contribution Limits, & Deadlines
A Roth 401(k) is an account available in some 401(k) plans that allow participants to make some of their contributions to after-tax accounts. A Roth 401(k) differs from a traditional 401(k) because traditional 401(k) contributions are tax-deductible, Roth 401(k)s contributions are taxed but withdrawals during retirement are tax-free. If you’re interest in setting up a…
8 Best Self-Directed IRA Custodians & Companies 2018
A self-directed IRA custodian or facilitator gives you the freedom to direct your own investments in stocks and bonds as well as alternative assets like real estate, private equity, and precious metals. We evaluated dozens of self-directed IRA companies on investment options, fees, and customer service and narrowed the list down to the best eight…
Roth vs Traditional 401(k): Which Account Is Best for You?
The basic difference between a Roth vs Traditional 401(k) is tax treatment for contributions and withdrawals. Roth 401(k)s are appropriate for investors who want tax-free withdrawals in exchange for paying taxes on contributions. Traditional 401(k)s are preferable for investors seeking upfront benefits from tax-deductible contributions and who pay taxes on withdrawals instead. Roth 401(k) vs…
Top Heavy 401(k) Plan: Rules, Minimum Contributions & Consequences
Top heavy 401(k) plan testing is an annual test required for all 401(k) plan sponsors. The test breaks down plan assets and limits key employees to owning 60 percent or less of all plan assets. Top heavy 401(k) plans that fail testing must be fixed so that all employees benefit from the plan. Top heavy…
Top 25 Questions to Ask a Financial Advisor During Financial Planning
A financial advisor can help you plan financially for your future by analyzing your most confidential financial information. We spoke with the industry experts who shared their different ideas on what questions to ask a financial advisor during financial planning to help ensure you work with the one who is right for you. Below are…
ACP Test vs. ADP Test: What to Know About 401(k) Nondiscrimination Testing
The actual deferral percentage (ADP) test and actual contribution percentage (ACP) test are both required to be administered every year to ensure traditional 401(k) plans are in compliance. While ADP considers only employee deferrals, ACP also includes employer contributions. However, plan sponsors must conduct both tests regardless of whether or not they match. If you’re…