Many employers offer health, life and auto insurance to employees at discounted rates. Often your employer is able to negotiate a lower rate for you because they are bringing a lot of potential customers to the insurance company or other provider. Insurers will often discount their rates because they don’t have to spend a lot on marketing because they have direct access to a large number of employees.
In 2022, we're seeing inflation like nothing we've encountered in decades. It's risen above 8% at times, sending prices of most items through the roof. Inflation is monitored in part by measuring the changes in what consumers pay through the Consumer Price Index against the Producer Price Index, which measures the prices that producers receive for their products.
After the end of 2021 we fielded many calls from clients and others who were surprised by a large tax bill. Many had to raid their Emergency Funds or even sell more securities in order to pay last year’s tax. It was painful for everyone.
If a distribution was required under the SECURE ACT, then we would want to make sure we took that distribution to steer clear of the 50% IRS penalty imposed on those that are required to take a distribution that don’t.
When does it make sense to apply early decision instead of early action?
First we need to understand how a 401(k) loan works. Basically a 401(k) loan is a loan from yourself. Effectively you become your own bank. This means that when you borrow, you are paying it back, with interest, to your own 401(k) account.