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 But the money amounts withdrawn will typically be deemed taxable income.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.
(Feature Impact) Cold spots are a common challenge for homeowners, especially during the winter months. They not only reduce overall comfort but can also drive up energy costs. These problem areas often appear in rooms over garages, spaces farthest from the HVAC unit, finished basements, and home additions.
Caused by uneven airflow, poor insulation, or systems that struggle to adapt to varying room conditions throughout the day, cold spots can lead to uncomfortable living spaces, extra strain on your HVAC system, and higher heating bills due to overcompensation.
Fixing these problems can involve several approaches. One option is upgrading from a single, whole-home HVAC system controlled by one thermostat to a zoned solution that lets you fine-tune comfort in each room. Another is improving ductwork by replacing long runs, undersized ducts, or leaky connections that restrict airflow. You can also add smart controls that automatically adjust to changing conditions.
Consider these tips recommended by the experts at Mitsubishi Electric Trane HVAC US (METUS) to improve your home’s comfort:
Evaluate Your Current System
Have a qualified technician inspect your HVAC system, checking ductwork for leaks, blockages or damage that could be preventing air from reaching specific rooms. Also confirm filters, coils and existing thermostats are properly located and in good working order to ensure they’re correctly reading temperatures.
Consider a Zoned HVAC System Upgrade
Zoning divides your home into separate areas, each with its own temperature control. Options like Zoned Comfort Solutions® from Mitsubishi Electric allow you to treat individual rooms or spaces differently, conditioning only the areas you use for consistent comfort and reduced energy waste.
In larger homes with central ducted systems, adding motorized zoning dampers to open and close inside the ductwork and multiple thermostats can help redirect air where it’s needed most. For additions, bonus rooms or spaces with unique needs, ductless mini‑splits provide independent control for precise comfort without requiring an overhaul of the entire existing system.
Add a Smart Thermostat and Sensors
Pairing zoning with smart sensors and controls allows each zone to fine‑tune comfort automatically for maximum efficiency. These sensors and advanced controls serve as the system’s intelligence, responding in real time to conditions in each room and monitoring both temperature and occupancy to adjust when a room deviates from the desired temperature.
Easy to integrate with many popular smart home platforms, the system learns your household schedule and habits to automatically optimize comfort and efficiency based on when and where people actually spend time. Plus, access through connected apps via your phone allows you to monitor cold‑prone rooms and make adjustments, even when you are away.
Schedule Seasonal Maintenance
At least semi-annually, if not at the change of each season, have filters, coils and sensors cleaned and calibrated by a professional. Staying up to date on maintenance can help ensure your system is delivering the right amount of air where and when you need it.
Modern, connected energy‑efficient systems are attractive to buyers and can help lower a home’s carbon footprint. Learn more about fixing cold spots with zoned solutions at mitsubishicomfort.com.
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!
Inviting Living Room: Turning your living room ñ the hub of seasonal entertaining ñ into a winter retreat can be simple with a few thoughtful updates. From the color palette and textiles to lighting and subtle seasonal accents, these ideas can help you create a space that feels warm and inviting, even on the chilliest of days.
(Family Features) Turning your living room – the hub of seasonal entertaining – into a winter retreat can be simple with a few thoughtful updates. From the color palette and textiles to lighting and subtle seasonal accents, these ideas can help you create a space that feels warm and inviting, even on the chilliest of days. Embrace a Winter Color Scheme Start with a warm, neutral color palette featuring creams, taupe, ivory, beige and soft grays then layer in deeper greens, muted blues or charcoal for contrast. Accent pieces such as pillows, throws and vases in matching rich tones or muted metallics can help the room feel like a cozy retreat from the cold outside without overwhelming your existing decor. Stick to your chosen color palette but vary texture and mix solids with subtle patterns like stripes or checks. Layer Cozy Textiles One of the easiest ways to dial up winter comfort is layering textiles. Drape knit or faux fur throw blankets over sofas and chairs, stack extra blankets in a basket or on a ladder shelf near the seating area and switch out lighter pillow covers for winter-friendly fabrics such as velvet, wool or sweater knit. On the floor, layer a smaller, softer rug over your existing area rug for extra warmth underfoot. Create a Seasonal Focal Point Your coffee table is the perfect focal point for winter decor. Start with a tray or shallow bowl then mix in a candle or two and other decorative elements such as books, wooden beads, pinecones or glass jars filled with fairy lights. Keeping the arrangement simple allows the table to remain functional for everyday use while still feeling seasonally intentional. Set the Mood with Lighting Shorter winter days mean less natural light floods your living space. Soften the glow with warm white bulbs in floor and table lamps then layer candles – real or flameless – on the mantel, coffee table or console for a cozy atmosphere. Add a Touch of Nature Bringing a touch of the outdoors in can give decor a fresh, grounded feel. Consider incorporating evergreen branches, pinecones, bare twigs, eucalyptus and dried stems for an understated nod to the landscape beyond your windows. Pair these natural elements with a grouping of houseplants in woven baskets, wood trays or stone pots to complete the organic, wintery look. Visit eLivingtoday.com for more seasonal decorating inspiration. Photo courtesy of Shutterstock SOURCE:
When we think of Valentine’s Day, chubby Cupids, hearts and roses generally come to mind, not industrial processes like mass production and the division of labor. Yet the latter were essential to the holiday’s history.
As a historian researching material culture and emotions, I’m aware of the important role the exchange of manufactured greeting cards played in the 19th-century version of Valentine’s Day.
At the beginning of that century, Britons produced most of their valentines by hand. By the 1850s, however, manufactured cards had replaced those previously made by individuals at home. By the 1860s, more than 1 million cards were in circulation in London alone.
The British journalist and playwright Andrew Halliday was fascinated by these cards, especially one popular card that featured a lady and gentleman walking arm-in-arm up a pathway toward a church.
Halliday recalled watching in fascination as “the windows of small booksellers and stationers” filled with “highly-coloured” valentines, and contemplating “how and where” they “originated.” “Who draws the pictures?” he wondered. “Who writes the poetry?”
In 1864 he decided to find out.
Manufactured intimacy
Today Halliday is most often remembered for his writing on London beggars in a groundbreaking 1864 social survey, “London Labour and the London Poor.” However, throughout the 1860s he was a regular contributor to Charles Dickens’ popular journal “All the Year Round,” in which he entertained readers with essays addressing various facets of ordinary British daily existence, including family relations, travel, public services and popular entertainments.
In one essay for that journal – “Cupid’s Manufactory,” which was later reprinted in 1866 in the collection “Everyday Papers” – Halliday led his readers on a guided tour of one of London’s foremost card manufacturers.
Inside the premises of “Cupid and Co.,” they followed a “valentine step by step” from a “plain sheet of paper” to “that neat white box in which it is packed, with others of its kind, to be sent out to the trade.”
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Touring ‘Cupid’s Manufactory’
“Cupid and Co.” was most likely the firm of Joseph Mansell, a lace-paper and stationary company that manufactured large numbers of valentines between the 1840s and 1860s – and also just happened to occupy the same address as “Mr. Cupid’s” in London’s Red Lion Square.
The processes Halliday described, however, were common to many British card manufacturers in the 1860s, and exemplified many industrial practices first introduced during the late 18th century, including the subdivision of tasks and the employment of women and child laborers.
Halliday moved through the rooms of “Cupid’s Manufactory,” describing the variety of processes by which various styles of cards were made for a range of different people and price points.
He noted how the card with the lady and gentleman on the path to the church began as a simple stamped card, in black and white – identical to one preserved today in the collections of the London Museum – priced at one penny.
A portion of these cards, however, then went on to a room where a group of young women were arranged along a bench, each with a different color of “liquid water-colour at her elbow.” Using stencils, one painted the “pale brown” pathway, then handed it to the woman next to her, who painted the “gentleman’s blue coat,” who then handed it to the next, who painted the “salmon-coloured church,” and so forth. It was much like a similar group of female workers depicted making valentines in the “Illustrated London News” in the 1870s.
These colored cards, Halliday noted, would be sold for “sixpence to half-a-crown.” A portion of these, however, were then sent on to another room, where another group of young women glued on feathers, lace-paper, bits of silk or velvet, or even gold leaf, creating even more ornate cards sometimes sold for 5 shillings and above.
All told, Halliday witnessed “about sixty hands” – mostly young women, but also “men and boys,” who worked 10 hours a day in every season of the year, making cards for Valentine’s Day.
Yet, it was on the top floor of the business that Halliday encountered the people who arguably fascinated him the most: the six artists who designed all the cards, and the poets who provided their text – most of whom actually worked offsite.
Here were the men responsible for manufacturing the actual sentiments the cards conveyed – and in the mid-19th century these encompassed a far wider range of emotions than the cards produced by Hallmark and others in the 21st century.
A spectrum of ‘manufactured emotions’
Many Victorians mailed cards not only to those with whom they were in love, but also to those they disliked or wished to mock or abuse. A whole subgenre of cards existed to belittle the members of certain trades, like tailors or draper’s assistants, or people who dressed out of fashion.
Cards were specifically designed for discouraging suitors and for poking fun of the old or the unattractive. While some of these cards likely were exchanged as jokes between friends, the consensus among scholars is that many were absolutely intended to be sent as cruel insults.
Furthermore, unlike in the present day, in the 19th century those who received a Valentine were expected to send one in return, which meant there were also cards to discourage future attentions, recommend patience, express thanks, proclaim mutual admiration, or affirm love’s effusions.
Halliday noted the poet employed by “Cupid’s” had recently finished the text for a mean-spirited comic valentine featuring a gentleman admiring himself in a mirror:
Looking at thyself within the glass, You appear lost in admiration; You deceive yourself, and think, alas! You are a wonder of creation.
This same author, however, had earlier completed the opposite kind of text for the card Halliday had previously highlighted, featuring the “lady and gentleman churchward-bound”:
“The path before me gladly would I trace, With one who’s dearest to my constant heart, To yonder church, the holy sacred place, Where I my vows of Love would fain impart; And in sweet wedlock’s bonds unite with thee, Oh, then, how blest my life would ever be!”
These were very different texts by the very same man. And Halliday assured his readers “Cupid’s laureate” had authored many others in every imaginable style and sentiment, all year long, for “twopence a line.”
Halliday showed how a stranger was manufacturing expressions of emotions for the use of other strangers who paid money for them. In fact, he assured his readers that in the lead up to Valentine’s Day “Cupid’s” was “turning out two hundred and fifty pounds’ worth of valentines a week,” and that his business was “yearly on the increase.”
Halliday found this dynamic – the process of mass producing cards for profit to help people express their authentic emotions – both fascinating and bizarre. It was a practice he thought seemed like it ought to be “beneath the dignity of the age.”
And yet it thrived among the earnest Victorians, and it thrives still. Indeed, it remains a core feature of the modern holiday of Valentine’s Day.
This year, like in so many others, I will stand at a display of greeting cards, with many other strangers, as we all try to find that one card designed by someone else, mass-produced for profit, that will convey our sincere personal feelings for our friends and loved ones.
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.
