What to Know About Your New 401(k) Statement

September 13, 2021

As part of your retirement plan and your estate plan, there is a good chance that your 401(k) is a big component of your future planning. You’ve spent most of your working life building up your retirement funds and preparing yourself for an estimated retirement age.

A new change coming to your 401(k) quarterly statement will help you make more appropriate plans for how you’ll use these benefits while you are alive and how to consider passing them onto your loved ones later. Sponsors of defined contribution retirement plans like 401(k) will soon include illustration about the lifetime income that you’ll be eligible to receive from your nest egg.

This will show how much income you could possibly receive from your 401(k) when using an annuity every single month. Estimated amounts will use the assumption that your payments would start immediately so take this into consideration as you read these new details. Bear in mind that these general numbers will apply to IRS mortality table lifetime expectancy rates and interest rates based on the current yield from the ten year treasury bond.

The primary purpose of the shift in 401(k) statements is to give participants more information about how their actual account value translates to monthly income. As you make these plans, you might adjust your estate planning strategies. Set aside time to speak with an experienced estate planning lawyer about your options.

Remember when looking ahead to your retirement age that there are many things you can do to support yourself during this time and also leave behind a legacy for your loved ones. As you get closer to retirement, continue to keep a closer eye on your savings strategies and consult with your estate planning law firm about making any necessary changes to meet your goals.

 


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

Estate Planning for the Middle Class: Why It Matters Even If You’re Below the Tax Threshold

Think estate planning is only for the ultra-wealthy? Discover why the middle class still needs wills, trusts, and POAs—even if you’re under the estate tax exemption in 2025. With the federal estate tax exemption set at $13.99 million per individual in 2025, many families assume estate planning is only relevant to the ultra-wealthy. ...

<p>The post Estate Planning for the Middle Class: Why It Matters Even If You’re Below the Tax Threshold first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

The Great Wealth Transfer is Here: What It Means for Your Family and Legacy

Explore the implications of the $84.4 trillion wealth transfer from baby boomers to heirs, and learn how to prepare your family and legacy for this unprecedented shift. Understanding the Scale of the Transfer The magnitude of this wealth transfer is unprecedented. Baby boomers alone are set to account for $53 ...

<p>The post The Great Wealth Transfer is Here: What It Means for Your Family and Legacy first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Asset Protection for Business Owners: The Most Overlooked (and Maybe Easiest) Step

When most business owners think about asset protection, their minds often jump to elaborate strategies—LLCs in protective jurisdictions, domestic asset protection trusts, complex estate plans. While those are all powerful tools, there’s one basic—yet critical—step that too many ...

<p>The post Asset Protection for Business Owners: The Most Overlooked (and Maybe Easiest) Step first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>