Simply put, a 401(k) is an employer-sponsored retirement savings plan in which employees contribute a portion of their compensation on a tax-deferred basis. The employee is eligible at any age to contribute to a 401(k) plan and has the option to pay into these plans throughout their employment. Many employers match some or all of an employee’s contributions, making the plan even more attractive.
What about withdrawals?
Under Internal Revenue Service rules, someone with a 401(k) is required to start making monetary withdrawals from their plan when they reach age 73. Some people start withdrawing at an earlier age. Someone with a 401(k) can withdraw funds from the plan early, and at any time. But the money amounts withdrawn will typically be deemed taxable income. In addition, those age 59 and a half and under will likely face a 10% penalty on the withdrawal, unless the employer’s plan allows for hardship distributions, early withdrawals or loans from your plan account. The IRS has specific rules for these early withdrawals; if you find yourself in this situation, you should get help from a tax professional. All withdrawals starting at age 73, which tax professionals call “RMDs,” are then taxable in retirement – presumably at a lower tax rate than the employee was subject to while employed and working. So these withdrawals starting at age 73 can be a very tax-efficient way of financial planning, including personal income tax planning, for later in life, especially in one’s retirement years. Again, it’s important to get help from a tax professional to make sure you meet the IRS’ RMD dollar withdrawal requirements once you start withdrawing. In calendar-year 2025, the most that an employee can contribute to a tax-deferred 401(k) plan annually is US$23,500, including the employer’s match. “Super catch-up contributions are allowed for employees over the age of 50 to their employer’s 401(k) plan each year indexed to inflation. In 2025, super catch-up contributions allow individuals age 50 and older to contribute an additional $7,500 beyond the standard limit, bringing their total annual contribution to $31,000. For those turning age 60, 61, 62 or 63 in 2025, the SECURE Act 2.0 allows a higher catch-up contribution limit of $11,250, resulting in a total allowable contribution of $34,750 in 2025.
When and why did 401(k)s become popular?
Before 1978, retirement savings options were limited. In 1935, Congress created the Social Security Retirement Plan. This was followed by the Employee Retirement Income Security Act of 1974, which created individual retirement accounts, or IRAs, as a way for employees to save tax-deferred money for their retirement. 401(k) plans became popular with the passage of the Revenue Act of 1978 by Congress. Congress saw 401(k) plans at that time as an alternative way to supplement Social Security benefits that all eligible Americans are entitled to receive upon retirement. In 1981, the IRS issued new rules and regulations allowing employees to fund their 401(k)s through payroll deductions. This significantly increased the number of employees contributing to their employers’ 401(k) plans. As of September 2024, Americans held $8.9 trillion in 401(k) plans, according to the Investment Company Institute. A study published by the Pension Rights Center toward the end of 2023 using data provided by the Bureau of Labor Statistics concluded that 56% of all workers – including private sector and state and local government workers – participate in a workplace retirement plan. That equates to 145 million full- and part-time workers.
How are 401(k) plans affected by market rises and falls?
Contributions to a 401(k) are typically invested in a variety of financial instruments, including in the stock market. Most 401(k) plans offer investment options with varying levels of risk, allowing employees to choose based on their personal comfort levels and financial goals. Employers typically outsource the management of these 401(k) plans to third parties. Some of the largest companies managing 401(k) funds on behalf of employers and employees include Fidelity Investments, T. Rowe Price and Charles Schwab, to name just a few. Because many of these investments are tied to the stock market, 401(k) balances can rise or fall with market fluctuations.401(k) plans are a financial lifeline for many American retirees.Halfpoint Images/Getty Images
Should I be worried about the stock market tanking my 401(k)?
It depends on when you started making contributions, when you plan to retire and when you expect to start making withdrawals. Employees with 401(k) accounts should only be worried about falling stocks if they need the money right now – either for retirement living expenses or for other emergency reasons. If you don’t need to take money out soon, there’s usually no reason to panic. History has shown that markets can rebound quickly; short-term drops often don’t signal long-term trends. Over time, the stock market has experienced many periods of falling stock prices: the bursting of the internet bubble of 2000; the period after the events of 9/11; and the U.S. and global banking crisis of 2007-2010, to name but three. But overall, over time, stock market returns have averaged 9% from 1994 to 2024, and this includes the periods of falling stock prices mentioned above. So even if you are a baby boomer heading for retirement and your 401(k) has taken a hit in recent weeks, don’t panic. Bear in mind the truism that stock markets can always go down as well as up. History suggests that in the long run, depending upon your plans and timing for retirement, working together with a trusted financial adviser strategically with regard to your 401(k) retirement savings is a good approach, especially during periods like we have seen in recent weeks in the stock market. This article is for informational purposes and does not constitute financial advice. Consult with a qualified financial adviser before making financial decisions.Dr. Ronald Premuroso, Accounting Instructor, Western Governors University School of Business This article is republished from The Conversation under a Creative Commons license. Read the original article.
(Family Features) Hardwood floors come in a variety of types. Before diving into the cleaning process, it’s important to recognize the type of floor – and its finish – in your home.
Whether solid wood or engineered wood (multiple layers of wood veneer), each flooring type has specific cleaning needs. The same is true for the type of finish used, including durable and water-resistant surface finishes like polyurethane and polycrylic or penetrating finishes such as oil or wax, which require more meticulous care to ensure longevity and maintain shine.
Transform your hardwood floors from dull to dazzling with these cleaning tips.
Prepare the Area: Remove furniture and rugs from the room to ensure you can clean every inch of the floor. Check for any debris or dirt that can be swept away with a soft-bristle broom or vacuumed using a hardwood floor vacuum attachment.
Dust and Sweep: Thoroughly sweep the floor to remove dust and dirt. Use a microfiber mop to capture finer particles the broom might miss.
Spot Clean: Identify any stubborn stains or spots. Use a damp cloth and small amount of hardwood floor cleaner to gently scrub these areas. Avoid harsh chemicals (including vinegar and ammonia), abrasive scrubbers and soaked cloths to prevent damage to the wood or finish.
Mop the Floor: Fill a bucket with water and add a few drops of pH-neutral hardwood floor cleaner. Dip the microfiber mop into the solution, wring out excess water and mop the floor following the grain of the wood. Work in small sections to prevent water from sitting on the floor too long. Note: Excessive water can seep into the wood and cause swelling, warping or mold growth.
Dry the Floor: Immediately after mopping, use a dry microfiber cloth to wipe the floor to remove any remaining moisture and streaks before walking on it.
Prevent Long-Term Danage: Place doormats at entryways to catch dirt and moisture before they reach your floors. Use area rugs in high-traffic areas, felt pads under furniture legs to prevent scratches and a dehumidifier to control humidity levels, which can impact wood stability.
Maintain the Shine: Apply a hardwood floor polish every few months according to the manufacturer’s guidelines. Test the polish in an inconspicuous area first to ensure compatibility with your floor’s finish.
Planning a home remodel involves defining goals, setting a budget, gathering inspiration, planning a timeline, selecting a contractor, finalizing design choices, and preparing the home. A clear plan helps manage costs and expectations, allowing for a smoother renovation process while minimizing stress for the household.
(Family Features) Planning a home remodel is as much about your vision as it is your preparation. With a thoughtful plan, you can refresh your living space, stay on budget and enjoy the process without feeling overwhelmed.
Consider these steps to get the process started:
Define your goals
Decide what you’re looking to accomplish with your remodel, whether it’s improved functionality, updated style, higher resale value or a combination. Make a simple list of “must-haves” and “nice-to-haves” so you can prioritize upgrades if costs start to climb too high.
Set a realistic budget
Determine how much you’re comfortable spending then add a cushion of 10-20% for additional material costs and any surprises behind walls or under floors. Get rough price ranges for materials and labor, which allows you to adjust the scope of your project before the work begins, if necessary, instead of mid-project.
Gather ideas and inspiration
Collect photos, paint colors and product ideas in a single place, such as a digital folder or photo album on your smartphone. Pay attention to recurring themes in your inspiration – such as cabinetry, flooring and fixture styles and colors – so it’s easier to choose finishes when the time comes.
Lay out the project timeline
Think about the best time for your household to live through construction, especially if kitchens or bathrooms will be out of commission during the renovation. Talk with potential contractors about timing for each phase so you can plan for temporary living arrangements, if necessary.
Choose the right construction crew
Interview a variety of potential contractors, being sure to ask for references and verify licenses and insurance. Once you’ve narrowed your list, request written estimates that include labor and material costs, timelines and payment schedules so expectations are clear before choosing a service provider and signing an agreement.
Finalize design details and materials
Make as many design decisions as possible before demolition, including choosing fixtures, appliances, flooring, tile, paint, hardware and other details. Ordering key items early can help avoid delays and keep the project on schedule once work begins.
Prep your home and family
Before construction begins, clear areas where work will be completed of furniture and decor, covering anything that cannot be moved out of the room with plastic sheeting. So everyone knows what to expect while your home is in transition, talk with family members about the impending noise and dust, and make necessary schedule changes to avoid interrupting work.
Visit eLivingtoday.com for more resources and home renovation guidance.
Littlest Pet Shop Partners With Like Nastya to Bring Collecting—and Storytelling—Back to the Spotlight
Littlest Pet Shop names Like Nastya as an official brand partner, launching a new YouTube content series and teasing more fan experiences through 2026.
LITTLEST PET SHOP is leaning into a very 2026 reality: kids discover brands as much through screens as they do through toy aisles.
Like Nastya, one of the most popular child creators in the world, has signed on as an official brand partner of top toy brand, LITTLEST PET SHOP.
This week, the iconic collectible toy line announced a new partnership with Like Nastya—one of the world’s biggest child creators—signaling a major push to connect LITTLEST PET SHOP’s long-running “tell your own story” DNA with today’s digital-first families.
A creator partnership built on imagination
According to the announcement, Like Nastya has more than 409 million subscribers across YouTube and reaches billions of views each month. Her content is known for positivity, imaginative play, and family-friendly storytelling—an easy brand fit for LITTLEST PET SHOP, which has always centered quirky characters, customization, and kid-led narratives.
The collaboration is positioned as a “meeting of two creative worlds,” with both Nastya and LITTLEST PET SHOP encouraging kids to express themselves, dream big, and celebrate individuality through play.
In a statement included in the release, Like Nastya said she’s excited to partner with the brand to inspire kids everywhere to tell their own stories.
What fans can expect (starting now)
The partnership begins this month with a content series on Like Nastya’s YouTube channel featuring LITTLEST PET SHOP toys. Beyond the initial videos, additional pieces of the collaboration will roll out throughout 2026—described as new experiences, surprises, and fresh ways to play.
For toy brands, that “reveal over time” approach is increasingly the playbook: keep the community engaged with ongoing drops, creator activations, and new touchpoints that extend beyond a single product moment.
A legacy brand with a modern relaunch
LITTLEST PET SHOP is no newcomer to fandom. The brand first launched more than 30 years ago and has sold over 1 billion pets to date. Its staying power has always been tied to collectability—plus the way kids (and collectors) build personalities and worlds around each pet.
The release also highlights the brand’s recent momentum: LITTLEST PET SHOP was relaunched in 2024 under a licensing agreement between brand owner Hasbro and Basic Fun!, the global toy marketer behind the current line. The Generation 7 pets quickly returned to best-seller status, driven by a new wave of young fans and longtime collectors who never really left.
Why this matters for toy marketing right now
This partnership is a clear signal that toy marketing is no longer just about commercials and endcaps—it’s about creators who can make play feel immediate, shareable, and story-driven.
Basic Fun!’s Maureen Dilger, Vice President of Global Brand Marketing, emphasized that Like Nastya reflects what LITTLEST PET SHOP stands for: imagination, self-expression, and “scroll-stopping stories.” Hasbro’s Marianne James, Senior Vice President of Global Licensing, framed the partnership as a way to connect the brand’s legacy with today’s digital generation—while still honoring collectors who have supported the franchise for decades.
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In other words: this isn’t a pivot away from the core fanbase. It’s an expansion of the storytelling ecosystem.
Where to follow LITTLEST PET SHOP
Fans can find more information about the LITTLEST PET SHOP brand and product line at LittlestPetShop.com and by following the official @LITTLESTPETSHOP social channels.
Welcome to the Consumer Corner section of STM Daily News, your ultimate destination for savvy shopping and informed decision-making! Dive into a treasure trove of insights and reviews covering everything from the hottest toys that spark joy in your little ones to the latest electronic gadgets that simplify your life. Explore our comprehensive guides on stylish home furnishings, discover smart tips for buying a home or enhancing your living space with creative improvement ideas, and get the lowdown on the best cars through our detailed auto reviews. Whether you’re making a major purchase or simply seeking inspiration, the Consumer Corner is here to empower you every step of the way—unlock the keys to becoming a smarter consumer today!
Dr. Ronald Premuroso, Accounting Instructor, Western Governors University School of Business This article is republished from The Conversation under a Creative Commons license. Read the original article.
