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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

September/October 2019

Know Your 401(k) Words

Know Your 401k Words

If you’re like many workers, you contribute to a company-sponsored 401(k) plan, but you might not understand all the financial jargon that comes with one. If you’re among the justifiably confused, some of these definitions may clear up any uncertainty.


Beneficiary
As with a life insurance policy, you’ll need to name one or more beneficiaries of your 401(k) plan so its assets can pass as intended in the event of your death.


Contribution Limit
In 2019, you may contribute up to $19,000 plus another $6,000 if you’re at least age 50. Your plan, however, may have different limits, so ask about them.


Distributions
The IRS refers to withdrawals as distributions. Taking distributions before age 59 1/2 will cause you to pay a penalty and income tax on the amount, with a few exceptions.


Match
That’s how much of your contributions an employer matches. Make it a point to contribute enough to take full advantage of the match.


Required Minimum Distributions
This mouthful is better known as RMDs. They are not space movie robots, but required withdrawals you generally must begin taking at age 70 1/2. Failure to do so may result in you having to pay a penalty.


Vested Interest
Your contributions belong to you, but you may not immediately vest fully in your employer’s match, which can take up to five years.


Jump Start
Now that you know a few more 401(k) plan words, take the next step and begin contributing more. The retired you will appreciate your early efforts.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
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