Not all 401(k) plan participants are completely educated about their 401(k) plans and really do have a lot of misconceptions about it. So how much do you really know about your 401(k) plan? Let’s find out. The entire 401(k) account is mine when I quit the job : This is one of the biggest mistakes one could make in his/her 401(k) retirement planner. This may OR may not be true, depending on your 401(k) plan’s vesting schedule.While your own (Roth/pre-tax) contributions to the plan are always yours to keep, it is not always the case with employer contributions. While some employer contributions are also owned by employees, there are others which require employees to have up to 6 years of service before they’re entitled to employer contributions completely. The 401(k) is a great method to save for first home, college, etc .: Many people think that 401(k) plans can be used for other major things such as paying for a down payment for a home or for college tuition. However, 401(k) plans should be solely focused on retirement nest eggs and savings. If you want to fund your child’s college education, try the 529 plan, but leave your 401(k) alone because if any dire need arises in the future, you’ll be left without savings.

As a taxpayer, you may come across tax deductions and tax credits as a part of tax benefit. These terms might be alien to you, but one needs to understand these well to get benefits and deductions. The tax deductions lessen the taxable income and the final value is computed on the marginal tax rate of the individual. The marginal tax rate increases with the rise in the income of the taxpayer. Tax credits, on the other hand, reduce the taxes directly. Therefore, these credits do not rely on the rates of the taxes. However, the value of the credit depends on the taxpayer’s tax liability. Nonrefundable tax credits If you are wondering if the tax benefits can bring down the tax to zero, then there are nonrefundable tax credits to help you out. Most tax credits are nonrefundable. So, the income filers who fall under the low-income bracket do not fully benefit from the nonrefundable tax credits. There are other tax credits that can be partially or fully refundable. If the tax liability value surpasses of an individual, then the surplus amount is paid back to the income tax filer. Tax benefits of education Taxpayers can avail benefits of education through tax credits for higher education.

Commercial truck insurance is just one of the many expenses you will incur as an owner of a successful transportation or logistics business. It is not advisable to skimp on insurance as accidents can happen at any given point in time and without warning. Consider the following factors before you buy an insurance policy. Certification Standard certification is one of the factors to consider before buying any type of commercial truck insurance. Common industry standard certifications similar to ISO are important to separate the best policies and plans from hundreds of providers in the market. Apart from certification, rating agencies issue ratings that deem the insurance companies prudent to issue policies that are backed by good financials. Claims and settlement Filing claims and recovering the amount due are two separate things. You may be able to file a claim with the relevant authorities, however, the process of recovery will take both time and a lot of efforts. Check to see if the commercial truck insurance provider offers cashless claims in the garages that form part of the insurance network. A cashless claim process is easy to follow and convenient to manage when the time comes for settlement. Coverage Read the policy and compare carefully to identify general and specific coverage with possible exclusions from the terms and conditions.

Rollover IRAs allow for the transfer of assets from your old employer-sponsored retirement account to a new plan. A combination of your 401(k), 403(b), and profit sharing assets are eligible for transfer into a new retirement plan account. In comparison to a 401(k) account, there are many potential avenues for investment with a rollover IRA plan. The Internal Revenue Service (IRS) allows for only one rollover IRA option in a financial year. Rules that govern the process of a rollover IRA Moving funds You must contact the plan sponsor to find out if a rollover IRA is possible during your employment. The process is commonly referred to as an in-service distribution. The transfer is possible only for a handful of employer-sponsored plans. Tax implications of a rollover IRA In case of a direct payment distribution, 20% of the transfer amount must be withheld for Federal taxes. For a direct rollover, there are no tax implications. Tax-free distribution Taxes will not be applicable to transfers where there is no distribution. There are no charges on the transaction that moves funds from one IRA account into another. No tax on redeposits Any amount previously withdrawn and redeposited into the same IRA account within 60 days is not subject to tax.

When it comes to investing in mutual funds, it is always smart to learn the fundamentals of choosing the best funds and focusing on building the portfolio for a long term. From starting the financial process, the selection and analyzing the portfolio, and taxation is needed to be known before investing. Below are five useful tips for investment in mutual funds: Investment based on goals To understand the objectives of the mutual funds, one must read all the scheme related documents. The objectives should align with the goals of investment. Also, the historical performance and the time horizon must be considered. Ensure that the scheme you invest in is a scheme that is likely to offer the best return in the specified time you aim for. Usually, equity mutual funds can be used for attaining the goals that are within 5 years. Diversify your investments In the longer run, small investments that are regular have proven to show better returns. One can invest in a Systematic Investment Plan (SIP), which enables one to invest monthly into mutual funds. This monthly investment plan helps in averaging the cost. One can also add more amount if one wants to surplus the investment. Risk tolerance One needs to know how much amount they can afford to risk before choosing the funds.

Business credit cards are highly favored by business owners since it gives them access to multiple lines of credit. According to recent reports, small business cards amount to $430 billion of expenses. One in every six dollars is spent on general-purpose cards. If you don’t have any cards to manage your business expense, this can be the best time to get one. Business cards come with a set credit limit. They help you make purchases and withdraw cash as well. They’re pretty similar to consumer credit cards, but business cards have an interest charge if you fail to pay the balance every payment cycle. It’s pretty easy to get approval for a business card through a bank or lending company. Compare the terms and conditions and apply online through their official websites. If you’re still wondering about why you should get a business credit card, here are some reasons that you should. High credit limits Business cards normally carry a limit of $50,000. This can be extended if you need it. It’s easy to buy products and services that are necessary to run your business smoothly. Boost the credit rating When you use your business card responsibly and efficiently and make payments in time, you’re rewarded with good credit ratings.

Travel rewards cards are a great option if you’re a frequent traveler and accumulate points quickly. That depends on whether you frequently use one airline for travel and stay at one hotel chain. Travel Cards – Low Interest or Rewards Program? â You can get travel cards that offer no perks. These are mainly low APR or no annual fee cards. They help keep interest rate and costs down, but there is no way to convert your card usage into rewards. â If you have a good credit score and can manage your credit card balance, choose travel rewards credit cards â If a card comes with no annual fee for the first year, check what the fee would be the next year. If the fee cancels the benefits provided by the rewards program, choose another card. â If a card offers low or 0% APR for an initial period, check the regular APR to see if it would suit your habits Travel Rewards Cards – Types Travel rewards cards can be co-branded cards. That is, they’re tied to a particular airline or hotel chain. These can help you get rewards and other benefits from loyalty programs. However, if you don’t stick to a single airline or a particular hotel chain, don’t get these cards.

Data suggests that more than forty million Americans don’t have a bank account. The reasons can vary, but this has opened an innovative avenue in the US financial market. Prepaid debit cards have taken the market by storm, and have ensured that there’s always a convenient method of performing transaction. Upon activation, you can use the card anywhere. Not only does this save time, but it can also help you streamline your finance. There’s a recent upward trend in the number of prepaid card users. Here’s how it all started. The Rise Of No Fee Prepaid Debit Cards As the name suggests, you can reload these debit cards at your convenience. You don’t need a bank account to use this facility. That’s why prepaid debit cards are an easy way to perform transactions. Being a popular non-cash medium for transaction these days, prepaid cards help a lot of people. These include daily wage workers and those who don’t trust the banking system. Prepaid debit cards let the user control their money according to their needs. But, since this concept is new, banks sneak in hidden charges when the card is used. So it’s important to do some proper research when you’re choosing a prepaid card provider.

As a landlord of a residential property, you need protection from financial losses, which may result from a property damage due to break in, extreme weather or even break-ins. A landlord insurance provides coverage for property owners, who are renting out one or more residential homes, condos, and apartments. There are insurance covers that can help you cover the loss of income in the event that your residential unit becomes uninhabitable due to circumstances that are beyond your control. Landlord insurance protects owners from the damage to their property and from liability claims. Following are a few examples that would explain how landlord insurance work: landlord liability example Consider a scenario, where a visitor visits your property. While, on your property, if the visitor falls because he tripped over his own shoelaces, as the landlord you don’t have the liability claim on your hands. If the visitor is staying with one of the tenants that the landlord has leased his/her house too, falls on a slippery floor, the landlord here as well is not likely to be held responsible. This incident will probably fall under the renter’s liability insurance. The landlord might have a liability claim on their hands if the visitor tripped due to negligence on landlord’s part, such as broken stairways in the landlord’s building or icy walkways.

The cost of medication is increasing every year, and many of the sick and elderly need help to keep up with their medication requirements. That’s where Medicare Part D insurance coverage comes in. These plans can help cover a good portion of the cost. Humana Part D PDP Plans Humana Inc, is a health and supplementary benefits company. It offers many health and Medicare insurance plans to help cover the increasing cost of healthcare. The company offers three different Medicare Part D plans, to help older people deal with the cost of medications. Those who are signed up for Medicare Part A or B benefits are eligible to receive Part D coverage as well. This cover is provided by private insurance companies in two ways. Beneficiaries can sign up for a Part C plan that covers both hospitalization and prescription drugs. They can also sign up for Part D or Prescription Drug Plan (PDP). Choosing a PDP The first thing to do is to compare premiums. If you choose a lower premium, the benefits offered will be less, and you’ll have to pay a higher deductible towards claims. The higher the premium, the broader the coverage. Choose a plan according to your medication needs.

In recent years, alternate energy stocks have seen a large number of investments in the markets. Investing in oil stocks has become a great way to diversify your investment portfolio. Although these stocks come with their own set of risks, there are some safe stocks that offer you an excellent return for your money. In fact, here are a few top oil stocks that are currently grabbing everyone’s attention.  Chevron Corp Chevron is one of the widely known oil companies globally that aims to offer reliable and affordable energy solutions. Amidst the current oil chaos, Chevron is a high-yield stock to invest your money in. Recently, Chevron cut its management spending by 48% and its operating expenses by 12%. Most importantly, it discontinued its buyback program to make sure that its dividends of 6.1% do not get affected. Conoco Phillips Those looking for top oil stocks to buy should definitely consider this option. Based on production and proven reserves, this is one of the world’s largest E&P companies. This company is involved in the effective production of oil and natural gas through its innovative techniques. The stock has a payable cash dividend of $0.43 per share, and its previous closing was $39.27 , while its market cap was $42.6 billion .