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Retirement Planning

Required Minimum Distribution (RMD)

The Internal Revenue Service (IRS) requires individuals with an Individual Retirement Account (IRA) to withdraw a minimum amount each year once they reach the age of 70½. This is known as the Required Minimum Distribution (RMD). It is important for IRA owners to understand and comply with this rule to avoid potential penalties and maximize their retirement savings. Let's delve deeper into the concept of RMD and its implications for retirement planning.

Contribution Percentage Definition

A contribution percentage is a crucial aspect of your workplace retirement plan. It involves deciding how much of your paycheck you want to put towards tax-deferred contribu...

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Defined Benefit Plan Definition

A defined benefit plan, also known as a traditional pension plan, is a retirement plan where the employer guarantees a specific annual income for the employee based on vario...

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Life Cycle Fund

A life cycle fund, also known as a target date fund, is a type of mutual fund that adjusts its level of risk according to the age of its owner. As the investor approaches re...

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Earned Income Rule

An important factor to consider when contributing to an IRA is eligibility. Both Traditional and Roth IRAs require an individual to have earned income in order to contribute...

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