The average 401(k) balance hit another record high by the end of 2012, hitting $77,300, up from $69,100 a year earlier, according to Fidelity Investments, the largest 401(k) administrator.
Investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds (ETFs) in January, the biggest monthly inflow on record.
The new buzz term in the ongoing debate on making the tax code more equitable is “carried interest”, the tax rate paid by many private equity managers, venture capital and real estate partnerships.
More than a quarter of U.S. households that have a 401(k), or similar “defined contribution” plan, pull out all or some cash from these savings accounts for non-retirement needs, putting into question the role and effectiveness of these plans.
A new study shows that more than a quarter of Americans, an increasing percentage, are resorting to pulling money from their retirement accounts, or 401(k)s, to pay down debt such as credit card or mortgage balances.
Equity mutual funds hit the second-highest inflows in history during the first week of the year, an indication of investors’ optimism in the global economy’s direction.
The fiscal cliff legislation has provided a little-noticed tax advantage for Americans with traditional 401(k) savings accounts, allowing them to assume tax liability now and avoid taxes on future gains or withdrawals.