Author: 401kEasy

First, the Good News—The good news is that today there are more “401k millionaires” than at any other time in US history. The two factors behind this increase in 401k accounts worth $1 million or more are: (1) the significant run-up of the stock market, and (2) because of Covid, people stayed home and ended…

The goal of the proposed Biden 401k is to “push down” the tax benefits of 401k participation to 80% of American workers who earn less than $175,000 in W-2 wages. Currently, these workers are receiving only 35% of the tax benefits of all 401k participants, and workers earning more than $175,000 are getting 65% of…

Covid’s under-reported impact on 401ks has been a ten-fold increase in demand for 401k loans and 401k hardships. A sizable portion of 401k savings has been prematurely withdrawn from plans across the country to meet savers’ short-term emergency needs. The impact from massive numbers of premature withdrawals has not been compiled yet. Still, as a…

We are all living in a radically different American today than just 12 months ago because of the Covid 19 virus epidemic. Scientists and genuine experts predict another year will pass before most of us feel life has returned to “normal.” What have we all suffered through in the past 12 months? As of this…

Bloomberg Law reports that class action lawsuits concerning 401k fees have seen a five-fold increase in the past 12 months!  The word is getting out that 401k fees skimmed from employees’ retirement savings are a severe problem, and financial advisors pocketing these 401k fees are feeling the heat. We think these lawsuits are a good…

The vast majority of 401k providers selling 401k administration and investment services to small American businesses are surreptitiously charging plan participants 401k AUM fees. “AUM” stands for “Assets Under Management,” and represents your total 401k retirement savings. If you have saved $50,000 in your 401k, a 1.5% AUM would equal approximately $750 per year going…

In Part 1 of this 3-Part series, we discussed the problems of 401k fees skimmed from investors’ retirement savings, and how these fees become the primary economic driver and profit center that attract venture capital firms. Part 2 of this series listed three reasons why the small 401k market is the wrong target for venture…

Venture capital (VC) firms making bets on new 401k provider “start-ups” are making a mistake, and simultaneously supporting the evil practice of skimming 401k fees. There are three reasons we make this claim: Reason 1 401k provider “start-ups” funded by venture capital firms are targeting small businesses. Small businesses have historically shunned 401k plans because…

This question of whether one is better off with contributing to the traditional 401k or Roth 401k is the subject of debate. We come down firmly on the side that a Roth 401k is more a gimmick than a legitimate financial tool, and people who use Roth 401k end up, over the long term, paying…