SmartMoney - The Wall Street Journal

Which Comes First, 401(k) or Debt?

Readers are divided on the subject of new college graduates saving for retirement. Some feel these young adults shouldn't invest a dime until they pay off their student loans. Others feel equally strongly that they should contribute at ...

What Your 401(k) Costs…Sort of

You may have heard that employers finally will be required to give employees detailed information about 401(k) plan fees. You could be disappointed when you see the results.

Young Investors, Start With a Roth

After my last column, on why young adults should start saving early if they hope to retire comfortably, some of you asked about how the money might be invested.

Offering a Helping Hand on Retirement Savings; New Website Provides Investment Novices Free Portfolio Recommendations; Asking Questions of the CEO

How often do you tinker with your retirement savings? Many people think about this when starting a job or opening a 401(k), but sometimes not again until they are ready to retire. According to financial advisers, that's too late.

How to Take Control of Your 401(k); Ruffenach: Chances are good the funds in your 401(k) yield only about 2 percent.

This may surprise you, but there's a good chance you can take direct control of your nest egg at work, choosing investments beyond the two dozen or so mutual funds that most employers offer in their savings plans. Doing so can be risky, but ...

How to Split a 401(k) in a Divorce

The divorce rate for Americans ages 50 and over is at a record level. And because employer-sponsored retirement plans comprise a large portion of the wealth of this age group, it's important to understand the rules that govern the division ...

ROI; Why We're All J.P. Morgan Now; Arends: The entire world of investing, including your 401(k), is now being run just like J.P. Morgan's "synthetic credit portfolio."

The drama unfolding at J.P. Morgan Chase is stunning. Gripping. And oh so predictable. If you think this is just a story about Wall Street greed and folly, and has nothing to do with you, think again. We are all J.P. Morgan now.

Congress Eyes 401(k)s Again

Some of the most popular retirement-savings tools are coming under the congressional microscope. As policy makers gear up for the tax-reform effort expected after the presidential election, they are asking: Can 401(k) plans, individual ...

How Different Should Public and Private Pensions Be?

Regarding Andrew Biggs and Jason Richwine's "Why Public Pensions Are So Rich" (op-ed, Jan. 4): While arguing that public employees should be moved into 401(k) plans, the authors ignore the fact that these savings plans have ...

SmartMoney Magazine; The 401(k)-Plus: How to Expand Your Options; To build a better nest egg, some employees are setting up accounts outside their company-sponsored plan.

It's a message that investors hear ad nauseam: Diversify, diversify, diversify. But when they try to build a well-rounded portfolio, many find that there aren't enough choices to spread the money around. In its April 2012 cover ...

Secrets of the 401(k) Millionaires; They don't necessarily have higher salaries, or the investing IQs of Warren Buffett, advisers say.

Those hoping to occupy Easy Street in retirement may want to follow the lead of the 0.2%: the topmost tiny fraction of savers who have managed to sock away more than $1 million in their 401(k)s.

Turning Home Equity Into 401(k) Money; Powell: There are big risks and big reward to leveraging strategy.

The financially savvy are truly different from the rest of us. Know why? They get to use the tax code to their advantage in ways most other folks can't or don't or won't.

SmartMoney Magazine; The Truth Behind Target Funds; The 401(k) fixtures have come under fire for poor performance and high costs. Here's what investors should consider.

A decade ago, target-date mutual funds were a niche product; today they¹re a staple of the retirement-savings industry. The funds, which automatically rebalance to become more conservative as an investor gets closer to retirement, are now ...

SmartMoney Magazine; Getting Better 401(k) Advice; More companies are offering advice, but some say it isn't enough -- and are looking outside their plan for help.

On average, 401(k) members fork over $83 per $10,000 invested each year in total fees, according to a recent study by Deloitte Consulting and the Investment Company Institute. For about 60 percent of 401(k) plans, that fee comes with what ...

Target Funds Miss Their Marks -- Again; Funds designed to get more conservative as investors approach retirement trailed major stock and bond indexes in 2011.

Often billed as the fund and brokerage industry's quick fix for retirement planning, so-called target-date funds took an unexpected turn for the worse in 2011, according to new data.

Understanding the Roth 401(k); This nifty retirement-savings option might be right for you. Here are the details.

As the name suggests, a Roth 401(k) combines features of the traditional 401(k) with those of the Roth IRA. It's offered by employers like a regular 401(k) plan, but as with a Roth IRA, contributions are made with after-tax dollars. ...

True 401(k) Fees to Be Revealed

Fund Scope | Scoreboard Most investors -- and I would hope all Barron's readers -- have a good grasp on what their mutual funds cost. At the very least, you should know whether they charge more or less than average and, if the answer is ...

Making Sense of 401(k) Disclosures; Powell: Sponsors of retirement plans will be required to disclose detailed information about plan features starting this year. Here's how to figure it all out.

Sometime this year your 401(k) quarterly statement will arrive, as usual, in your mailbox. What won't be usual, however, is what's inside the envelope or email. That's because the quarterly statement will feature not just the ...

401(k) Plans Step Into the Sunshine; New Labor Department Rules Will Require Fee Disclosures

The rules governing America's most popular retirement vehicle are about to change, and that could mean huge savings for millions of workers building nest eggs for the future.

Retirement Plans Will Soon Start Talking Fees

The rules governing America's most popular retirement vehicle are about to change. And that could mean huge savings for millions of workers who are building nest eggs for the future.

WSJ.com; What's So Wrong With Roth 401(k) Plans? Workers haven't embraced this savings option, but some experts say they should.

The number of companies offering Roth 401(k) plans has grown rapidly since the retirement plan became a permanent part of tax law in 2006. Employees, however, aren't quite as enamored.

Annuitizing Your 401(k)

The federal government is trying to ease the way for workers to buy annuities with their retirement savings. The goal: to create a source of income that people can't outlive.

SmartMoney Magazine; The Big Business of 401(k) Plans; Investors will soon learn more about the costs of their retirement plans. Many may wonder whether they're getting what they pay for.

America's conversion to the 401(k) plan has certainly created a new world for future retirees, who have been discovering just how tricky it is to prepare for retirement in their spare time. But one party hasn't been complaining: ...

Got a 401(k) Question? Answers to the most common questions people have about 401(k) plans.

A 401(k) can be a glorious thing, but let's not forget that these plans are regulated by government bureaucrats. That means they are rife with rules and regulations. Here are answers to some of the more common questions we get about ...

Feds Disclose New 401(k) Rules

The U.S. Labor Department took steps on Thursday to improve the disclosure of fees paid by millions of participants in 401(k) and other retirement-savings plans.

What Should You Do With a 401(k)?

After spending years slowly but surely socking away money in 401(k) plans, new retirees will find themselves at a fork in the road: choosing where to keep their savings.

Target Funds Bolster Stock Exposure

While Generation Y is understandably skittish about stocks, that doesn't mean these young adults aren't investing in the market. In the aggregate they certainly are—with help from trends in 401(k) plans.

Rolling Over Retirement Accounts; Mess up your rollover and you could face a 10% early withdrawal penalty. Here's how to do it right.

Chances are you'll have to roll over a retirement account at least once in your lifetime. Most likely, it will be when you leave your current employer and take your 401(k) with you. Or, you may be eligible to roll over your current IRA ...

Stable-value funds are shaky 401(k) options; Commentary: Fed pushes savers to diversify and take risk

BOSTON (MarketWatch) — My sister Carole runs a small franchise business and recently started a retirement plan for her employees. She asked me to review the mutual fund choices she could offer.

Exchange-Traded Funds; Are ETFs and 401(k) Plans a Bad Fit? Not necessarily, as some companies try adding exchange-traded funds to retirement plans

When the 401(k) came into vogue in the 1980s, the mutual fund was the investment of choice. So the retirement plan was built to suit the mutual fund's particular quirks, including its once-a-day trading and the ability to buy partial ...

Saving for Retirement; Teachers' 403(b) Plans See Big Changes; These programs are becoming more like corporate 401(k) plans as school districts respond to revised rules

For years, teachers in Albany, Ga., invested in tax-advantaged savings programs known as 403(b)s just as many educators elsewhere do: Instead of getting a menu of stock funds or other investment choices from their employer, like those ...

Secrets of the 401(k) Millionaires

Those hoping to occupy Easy Street in retirement may want to follow the lead of the 0.2%. That's the topmost tiny fraction of savers who've managed to sock away more than $1 million in their 401(k) plans.

The Dumbest Investment Move; Arends: Why owning your company's stock in your 401(k) can be a big mistake.

There are plenty of stupid investments you can make in this world. Stock in Pets.com and Washington Mutual didn't work out so well. Nor did those Las Vegas condos. Some of the social media and Web 2.0 stocks flying high on Wall Street ...

Fix Your 401(k)

So You've Maxed Out. Now What? Here are savings options to consider after you've maxed out your 401(k)

Got a 401(k) plan at the office? Is there employer matching? Are you contributing the maximum amount you're allowed each month? Then all this should add up to a very comfortable retirement, one that you'd be hard-pressed to match ...

Need to Know; Inspect the Fees in Your 401(k); New disclosures will make this easier, but here's how you can check key expenses today

More than 50 million Americans have invested some $3.64 trillion in 401(k) and 403(b) retirement savings plans, more than half of it in mutual funds. Chances are, few of them know how much they're paying in fees and expenses.

Safe at Home? Not in a 401(k)

How will 401(k) investors react to the latest blast of volatility in the markets? If the recent past is any guide, they will retreat into the apparent safety of cash, Treasury bonds and "stable value" mutual funds.

401(k) plans add lifetime-income options

SAN FRANCISCO (MarketWatch) — Some companies are now letting workers invest in annuities, so that their 401(k) savings will eventually yield an income stream, but there are advantages and pitfalls to this new retirement option.

Family Feuds: The Battles Over Retirement Accounts; Who's in line to get your account—or that of a parent or spouse—in case of death? You could be surprised.

Stock-market turmoil once again has Americans worrying about their 401(k)s and individual retirement accounts. But families can be blindsided by another aspect of these accounts: confusing rules about who is entitled to the assets in ...

Getting Income From Your 401(k) Plan; Video: MarketWatch's Robert Powell talks with three retirement-plan experts about what investors need to know before buying in.

Fees for 401(k)s will be revealed in 2012

SAN FRANCISCO (MarketWatch ) — Save the date. Come April 2012, some 65 million workers with 401(k) plans are in for a change. For the first time ever, sponsors of 401(k) plans — employers — will have to disclose what workers are paying for ...

The Best 401(k) Investment? Zweig: Stable-value funds are among the most popular 401(k) choices -- but they aren't without their pitfalls.

Stable is nice, but it isn't perfect. Investors in "stable-value funds," which are bundles of bonds tied together with an insurance policy within a 401(k) retirement plan, have fared remarkably well in recent years. But rising ...

SAVING FOR RETIREMENT; Tweaking 'Target' Lineups; Some employers replace—or customize—the one-stop funds in their 401(k)s

Some employers are reviewing the target-date mutual funds that have become mainstays in their 401(k) plans and are making changes. The changes include replacing current funds with similar ones from other providers to reduce fees, or working ...

Getting the Most From a Lame 401(k) Retirement Plan

It isn't easy picking investments when quality bonds offer meager yields, stocks seem bipolar and the richest economies are struggling to expand. But many 401(k) investors face an added challenge: choosing from a mutual-fund menu that ...

Experts Explain: How to Invest Your 401(k); Video: What to look for in a retirement plan.

Coming to Your 401(k): Fidelity ETFs? After years of ignoring one of the hottest investment options, Fidelity Investments appears to be planning a push into exchange-traded funds.

After years of ignoring one of the hottest investment options, Fidelity Investments appears to be planning a push into exchange-traded funds.

401(k) Help Not Wanted; Most people who have access to advice through their 401(k) plans – usually for a fee – aren't buying it.

Amid volatile markets and concerns about how workers are investing their retirement savings, more 401(k) plans are offering participants specific investment advice and even automatic account management to make investing decisions easier.

Big Changes Coming to 401(k) Plans in 2012; Video: From fee disclosure to investment lineups to lifetime income options, 401(k)s and other retirement plans will undergo major changes in 2012.

A New Trick: Don't Roll Over Your 401(k); Despite all the industry hype, many advisers say it's not always smart to roll over a 401(k) into an IRA after leaving a job. When should you roll?

While the country's job situation remains stuck in a rut, many Americans are still unsure what to do with something they left behind (along with their favorite coffee mug) at their prerecession employer. We're talking, naturally, ...

'Father' of the 401(k)'s Tough Love; Ted Benna, the benefits consultant who pioneered the original 401(k)s, says the plans need to be revamped.

How to Make Your 401(k) Plan Work Harder

Chances are you have a 401(k) plan at work. And the chances are you're not making nearly enough of it. A new year means a new leaf: This is as good a time as any to start turning that around.

Should You Tap Your 401(k) Early? In certain situations, it's possible to avoid the dreaded 10% penalty.

In this tough economy, you may be tempted to take an early withdrawal -- before age 59½ -- from your employer's qualified retirement plan. But don't without considering the tax implications, including the possibility of getting ...

Retirement Plans to Savers: Sit Tight; Financial advisers are suggesting more moves than ever. Why are 401(k) plans doing the opposite?

At a time when many advisers and professionals are giving up on "buy and hold," many large 401(k) companies are telling investors to stand pat. Who's right?

401(k)s: When Opting Out Makes Sense; Some advisers say not participating in your company-sponsored plan isn't always a bad choice.

In spite of legislation that has made it more difficult for workers to opt out of their 401(k) plans, as many as one in five do just that. And a surprising number of advisers say that's not necessarily the wrong choice.

Employee Lawsuit Highlights 401(k) Fee Issue

Fund Scope | Scoreboard Surely thousands of articles have been written on how to pick the best mutual funds and spot the worst. But here's a tip that doesn't often come up: If a fund company's employees are suing for being ...

401(k) Plans Get Responsible; More retirement plans are offering "socially responsible" funds. Do they fit in yours?

Retirement savers searching for ways to match their investments with their morals may soon have new options. A growing number of 401(k) plans are adding to their investment menus so-called socially responsible funds -- mutual funds that ...

How to Catch Up on Retirement Savings (if You're Starting Late)

More than 40% of baby boomers are at risk of not being able to pay for basic retirement expenses such as housing and out-of-pocket health care costs, according to a 2010 study by the Employee Benefit Research Institute. But it's not a ...

Will Peer Pressure Make Americans Save More? Americans will start off another new year with hopes of changing their bad financial habits.

Lose weight. Run a marathon. (Okay, a half-marathon.) And -- oh, yeah -- sock away a little more in the 401(k) plan. Improving one's financial habits may not top everybody's list of New Year's resolutions, but recent studies ...

The Big Delay in Your 401(k); Many workplace savers are discovering their options for reacting to market swings are limited. How to avoid feeling "trapped" by your 401(k) plan.

The recent market swoons have felt like a recurring nightmare for millions of investors, many of whom still bear the scars -- financial and psychic -- of the market crash three years ago. But when they went online or dialed up the financial ...

Are 401(k) Lawsuits Making Plans Better? Experts say the cases are prompting employers and regulators to reshape 401(k) plans to provide more investment choices and better disclosure about fees.

Few workers are happy with the performance of their 401(k) plans in recent years but how much blame should be placed with employers? Not much, according to recent court rulings in which companies including Bank of America Corp., Exelon Corp. ...

The Euro and Your 401(k)

Like it or not—and many of us don't like it at all -- U.S. taxpayers are helping to bail out Greece and the rest of the financially-distressed euro zone. The International Monetary Fund has committed to providing the Europeans with a ...

401(k) Plans Are Matching Again, but Not as Generously; Many U.S. companies that cut 401(k) matching contributions during the recession are beginning to restore them, with new restrictions.

Many U.S. companies that during the recession cut 401(k) matching contributions—one of the most valuable employee benefits—are beginning to restore them.

Will Your 401(k) Plan Survive?

Recent market turmoil and regulatory changes are driving both employers and workers to reassess their retirement plans. Low interest rates are prompting many employers with traditional defined-benefit plans to set aside more cash to cover ...

Banking on Yourself: Is It Ever OK to Raid Your 401(k)?

When your banker says no, your 401(k) says yes. That is what many employees nationwide seem to think. This week, publicly traded companies have been disclosing how much their workers have borrowed from their retirement accounts—and loans ...

Principal Financial results miss expectations; Shares of 401(k) specialist slide in after-hours action

SAN FRANCISCO (MarketWatch) — Principal Financial Group Inc. reported quarterly results late Monday that missed analyst expectations. Shares of the 401(k) specialist slipped more than 3% in after-hours trading.

Why Mutual Funds Still Cost You So Much; Stocks, bonds and ETFs just keep getting cheaper. But mutual fund fees haven't budged in years.

As many investors have realized recently, it's not that tough to get a deal in investing. Want cheaper commissions on stock trades? Check. How about free trades to buy and sell those exchange-traded funds? Done.

401(k) Limits Won't Rise

The maximum annual contribution an individual under age 50 can make to a 401(k) plan will stay put, at $16,500, for 2011, according to the Internal Revenue Service.

Investing for Retirement; Your Employer Knows Best. Perhaps. Some companies tell their workers: Act now or see your retirement-plan money shifted into target-date funds

Your employer may be more concerned about your 401(k) allocation than you are. In a bid to help employees get their retirement savings on track, more 401(k)-plan sponsors are shifting workers' 401(k) dollars out of their current ...

Corrections & Amplifications

Air-traffic controller Ron Chappell was honored for alerting a SkyWest jet to a nearby single-engine plane in 2009. An article that accompanied Thursday's Middle Seat column misstated his first name as Doug.

Roth 401(k)s Get a Booster

You soon may be able to move savings from a regular 401(k) retirement account to a Roth 401(k) thanks to a new law aimed at keeping workers within the company plans.

10 Costs That Can Ruin Your Retirement Savings; Unknown fees in your 401(k) plans, IRAs and other retirement accounts can make a world of difference in your overall investment returns.

It's said that what you don't know can't hurt you. No so. What you don't know can cost you, and sometimes cost dearly. Case in point: Advisers and others say there's a host of unknown costs and fees lurking inside ...

Funding a New Business With a 401(k); A little-known tax move can free up funds for new businesses.

"Take Two" is an ongoing series about first-time business owners over 50 by Angus Loten, a small-business reporter for the Wall Street Journal.

Retirees' Fund Choices Grow

Four years after starting a push into 401(k) plans, BlackRock (ticker: BLK)—the dominant player in exchange-traded funds—says it's finally making inroads into a retirement-investing market that's been dominated by traditional ...

Can Your Boss Save Your 401(k)?

In a conference room overlooking a Minneapolis suburb, Linda Robertson, a counselor in a trim suit jacket and paisley skirt, is doling out cheery bits of wisdom—and some cold, hard cash. Over the course of an hour and a half, she bats ...

Loans From 401(k)s Are on the Rise As Investors Tap Their Inner Banker

In spite of decades of advice to the contrary and the improving economy, millions of Americans are increasingly turning to what was once a lender of last resort—their 401(k) plans.

401(k) Advice—for a Hefty Fee

(See Corrections and Amplifications item below.) Forget the old brochures and model-portfolio charts. An increasing number of 401(k) plans now are offering extensive advice programs, and even the opportunity to turn over management of your ...

How To Manage Your 401(k); From contributions all the way to rollover, a smart approach to managing your 401(k) will help you prepare for retirement.

For seven out of 10 people who participate in a company 401(k) plan, their 401(k) investment is their largest source of retirement savings, according to a 2010 study by Charles Schwab.   Understanding how to manage your 401(k), from ...

As 401(k) Levels Rise, So Do Withdrawals

Most U.S. workers' 401(k) retirement plans showed "positive, steady savings" during the second quarter, according to Fidelity Investments, but there also was an increase in participants tapping their accounts for loans and ...

Three Alternatives to Raiding Your 401(k)

Americans are pulling money out of retirement accounts early. During the second quarter, 62,000 of the 11 million workers using 401(k) plans provided through Fidelity Investments began the process of taking out a hardship withdrawal, up from ...

401(k) Law Suppresses Saving for Retirement

A 2006 law designed to boost employees' retirement-savings is having the opposite effect for some people. Under the law, companies are allowed to automatically enroll workers in their 401(k) plans, rather than require employees to sign ...

Investing for retirement; Cheaper Choice in 401(k)s; Some retirement plans are replacing mutual funds with lower-cost 'collective trusts.' One drawback: It can be harder to compare the trusts' performance.

An increasing number of 401(k) plans offer investment options that look a lot like the typical mutual funds. But they're actually a whole different animal—and investors would be smart to know the difference.

Time to Quit Your Old 401(k)s? When changing employers, many workers leave money in the company retirement plan. But moving the dollars to your new firm or an IRA might be a better deal. Here's how to decide.

Financial planner Rick Brooks increasingly finds himself tangling with what he and his colleagues call "yapping dogs." Not the canine variety, but the 401(k) type—those pesky retirement accounts many people leave behind in their ...

Borrowing from a 401k, cosigning student loans, and required minimum distributions

QUESTION: I pay $180 a month for private mortgage insurance. Should I borrow from my 401(k) to pay down the principal and use the $180 toward repayment? Is there more value in this strategy than having it evaporate into the insurance?

Did 401(k) Reform Help? Five years after the sweeping changes, participation is up. So why aren't workers better prepared?

Five years after sweeping legislation altered the landscape for retirement savers, more workers are participating in 401(k)s and other workplace-savings plans. Success? Not so fast, critics say: Workers aren't necessarily better ...

saving for retirement; Locking In Income for a Lifetime; The Obama administration wants to nudge retirees toward annuities. Here's what you can buy now.

As more workers enter retirement relying on cash from a 401(k) plan or similar account instead of a company pension, fears are growing that some could mismanage their money and outlive their savings.

Out of Work, Out of Options and Over the Hill

After 20 months without a job, 55-year-old Henry Dietz has nearly drained his 401(k) retirement plan. He already has used up his personal savings, borrowed extensively, switched to a catastrophic health plan, which only covers medical ...

More retirement savers take loans, hardship withdrawals

SAN FRANCISCO (MarketWatch) -- Even as retirement savers recoup some investment losses from a year ago, financial struggles are forcing more of them to take out loans and hardship withdrawals from their 401(k) plans, according to data ...

Investors in 401(k)s To Get More Details

Investors in 401(k) plans will get far more detailed information about the costs of their retirement options under new Labor Department regulations set to go into effect in 2012.

In 401(k) Planning, Few Acting Their Age

Are investors acting their age? A recent report from a broker-dealer suggests they might not be, at least when it comes to risk. Among participants in Fidelity’s corporate defined-contribution plans, nearly two thirds maintain asset ...

When to Rebalance Your 401(k) Investments

When it comes to 401(k) plans, savvy investors know that asset allocation – based on your time horizon, risk tolerance and savings goal – is crucial. But without regular checkups, over time your investments can drift away from that initial ...

Tapping Your 401(k) Before You Retire

Accessing the funds in your 401(k) for something other than retirement isn't an easy thing to do, particularly if you're still working for the company that provides your 401(k). Granted, once you've left the job, regardless ...

Annuities May Be Coming to 401(k)s

BOSTON (MarketWatch) — Annuities in your 401(k): It’s beginning to seem less a question of whether and more a question of when and how. This week, a bevy of retirement-income experts said annuities should be offered as a 401(k) investment ...

Is a Roth 401(k) Right for You?

Roth 401(k) accounts are becoming more prevalent in company-sponsored retirement plans. Whether one is right for you depends on factors including your expectations of future income-tax rates.

Make the Most of Your 401(k) Plan

Even though he’s only 26, Grant Harris diligently shovels 6 percent of each paycheck into his 401(k) retirement plan. But for all his prudence, Harris gets rewarded with frustration. The human resources consultant has no idea how much his ...

Compare All of the Retirement Benefits

Your editorial, "The Utah Pension Model" (Jan. 19) advocating 401(k) use by public pensions raises more questions than it resolves.

Slow and Steady Saving Still Pays

The path toward having enough money to enjoy a comfortable retirement is a long one. And as the recent decade in the U.S. stock market shows, it's one where patience pays off.

Employers Slow to Resume 401(k) Matches

Roughly a year into the current economic expansion, U.S. corporations and their shareholders are enjoying surging profits and rising dividends—yet many employees are still waiting for the restoration of one of their most important benefits, ...