Author: Arabian Media staff

When you withdraw funds or take distributions from your 401(k) in retirement, you begin to enjoy new income but you must also face its tax consequences. Distributions are taxed as ordinary income but the tax burden you’ll incur varies by the type of account you have: a traditional 401(k) or a Roth 401(k). It also depends on when you withdraw funds from your account. Key Takeaways The tax treatment of 401(k) distributions depends on whether it’s a traditional or Roth plan.Traditional 401(k) withdrawals are taxed at the account owner’s current income tax rate.Roth 401(k) withdrawals generally aren’t taxable, provided the account was…

Key Takeaways Crypto’s promise of huge returns and tech-driven innovation has been attracting newer investors. Experts warn that cryptocurrencies can swing far more widely than the most popular exchange-traded funds (ETFs). Broad market ETFs offer built-in diversification, regulatory protection, and professional management, while direct crypto investments expose you to potential hacks, fraud, and the risk of a total loss. It’s no secret that crypto is winning the popularity contest among first-time investors. For many, hopping onto Coinbase is easier than wading through mutual fund prospectuses. Social media amplifies crypto’s “rebellious” ethos, a place to escape Wall Street, and maybe strike…

If you’ve been diligently saving for retirement through your employer’s 401(k) plan, you may be able to convert those savings into a Roth 401(k). The Roth 401(k) may offer you some added tax advantages. Here’s what you should know if you’re considering this conversion. Key Takeaways Traditional 401(k)s and Roth 401(k)s are taxed differently.Traditional 401(k)s use pre-tax contributions and the money grows tax-deferred—that is, you’ll need to pay taxes on it during retirement.Roth 401(k)s use after-tax dollars and grow tax-exempt—that is, qualified withdrawals are tax-free during retirement.”Qualified” means you’ve waited at least five years since your first contribution to your…

Key Takeaways According to a new survey, Americans think they’ll need $1.28 million to retire comfortably, yet about half will struggle to reach $500,000. You shouldn’t get caught up in what others think they need. Set your own target based on your own situation. Financial planners advise people who are behind in their savings to start contributing as much as possible and to consider working longer. In its 2025 U.S. Retirement Survey, Schroders found that many Americans are nowhere near reaching the $1.28 million they say they’ll need to retire comfortably. Just under half (48%) of the 1,500 people surveyed…

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Many people wouldn’t dream of giving up an inheritance. After all, a sudden windfall may help them reach some of their financial goals, including getting out of debt or saving for retirement. But, it may make more sense to decline it, especially if the inheritance pushes you into a higher tax bracket or if you simply want someone else to inherit it. Key Takeaways You can decline or disclaim an inheritance for any reason, including avoiding the tax implications.Disclaimers must be written within nine months of the decedent’s death.Once you’ve refused an inheritance, you cannot benefit from any assets or…

Americans have been complaining about the cost of living since colonial days. But it has always been a challenge to actually measure it and determine how it changes over time. It was just over a century ago, in 1921, that the U.S. government started publishing a national Consumer Price Index (CPI) based on living costs in major cities. The CPI remains the most-quoted measure of living costs today, providing a record of how costs have changed from year to year along with ample evidence that few things are as cheap as they once were. It is also used as a…

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A $1 Million Budget For many, the word “millionaire,” a term coined in 1762, calls to mind images of lavish wealth and extravagant lifestyles. Simply having this much money once represented a ticket to life on Easy Street. These days, thanks to cost-of-living increases and lifestyle changes, retiring on $1 million isn’t as carefree. It now requires smart budgeting to ensure this nest egg lasts for a retiree’s remaining years. Though it does not provide for the sumptuous lifestyle of years past, having $1 million for retirement is still a blessing. Many retirees rely on Social Security benefits for at…

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