Kaizen Wealth Management » Retirement Planning

IRS Will Keep 401(k) Contribution Limits Steady for Next Year

Kaizen Wealth Managment — Wed, 21 Oct 2009 18:32:41 +0000

Contribution limits will remain unchanged next year according to the tax collection agency.

Leaving limits at this year’s levels means that 401(k) participants under the age of 50 could contribute a maximum of $16,500, while participants aged 50 and above would be able to contribute up to $22,000. The announcement made late last week quieted concerns earlier this year that contribution limits to these plans would actually be lowered next year. The IRS formula used to set contribution levels is based on the cost of living index and the recession could have forced a reduction in contributions by $500.

While the cost-of-living index for the quarter ended September 30th was less than the cost-of-living index for the same quarter in 2008, a decline in the index “cannot result in a reduced limitation” under the Internal Revenue Code, the IRS said in a release.

Two-Thirds Don’t Have a Financial Plan

Kaizen Wealth Managment — Fri, 25 Sep 2009 15:56:50 +0000

Despite increasing pressure to slash debt and rebuild retirement funds, nearly two-thirds of consumers do not have a written financial plan, according to the 2009 National Consumer Survey on Personal Finance.

The survey, released today by the Certified Financial Planner Board of Standards, found that 64% of respondents do not have a written financial plan in place.

“Those in the know who are using financial planning are finding it a valuable experience,” Eleanor Blayney, consumer advocate for the CFP Board, said in an interview. “There are just too many people who are not using it.”

We couldn’t agree more.

Now May Be a Good Time to Transfer Your Old 401K Plan(s)

Kaizen Wealth Managment — Thu, 25 Jun 2009 21:25:11 +0000

Leaving your money in an old, forgotten 401(k) could be a losing proposition. Hidden fees, limited investment options and a likely unbalanced asset allocation can plague your retirement plan(s). If you are like many people, you’ve had many jobs over your career and left retirement-plan assets scattered about.

Consolidating these plans and investments can help:

rebalance your asset allocation
expand your investment choices
ease reporting and review of your complete retirement plan
continue your tax-deferred growth