The 401k Podcast with Fexingo: Employer Retirement Plans, Matching, and Long-Term Saving

Many 401k plans now offer a self-directed brokerage window (SDBW), letting you invest beyond the plan's core menu of mutual funds. In this episode, Lucas and Luna break down how SDBWs actually work, who they're for, and the hidden costs that can eat into returns. They walk through a real example: a mid-career saver with a $200,000 balance who uses an SDBW to buy individual tech stocks and ETFs. They discuss trading fees, custody fees, and the risk of 'diworsification.' They also explain why some plan sponsors discourage SDBW usage by adding cumbersome manual processes. Finally, they cover the new regulatory guidance from the DOL effective mid-2026 that requires clearer fee disclosure on these accounts. If your 401k offers a brokerage window, this episode will help you decide whether to use it or stick with the core menu.

#SelfDirectedBrokerageWindow #SDBW #401k #Retirement #BrokerageWindow #Investing #Fees #DOL #FeeDisclosure #IndividualStocks #ETFs #Diworsification #PlanSponsor #TradingFees #CustodyFee #Finance #FexingoBusiness #BusinessPodcast

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In this episode of The 401k Podcast, Lucas and Luna dig into your plan's managed account service — the automated investment advisory tool many 401k providers offer for a separate fee. They walk through how the typical managed account works, what it actually costs (often 0.3% to 0.5% of assets annually on top of fund fees), and when it might add value — especially for someone who doesn't want to rebalance or choose target-date funds. They also discuss the key trade-off: managed accounts tend to be conservative and may underperform a simple three-fund portfolio over time. Lucas shares data from a 2024 Morningstar study that found managed accounts added about 0.1% in annual returns compared to target-date funds, not enough to justify the extra fee for most participants. If you've ever wondered whether to click 'opt in' on that advisory feature, this episode gives you the framework to decide — and a reminder that the default is often fine.

#401k #ManagedAccount #RetirementPlanning #InvestmentFees #TargetDateFund #Fiduciary #Morningstar #AdvisoryFee #AutoRebalancing #ParticipantEducation #FinancialAdvisor #PassiveInvesting #IndexFunds #ExpenseRatio #AssetAllocation #FexingoBusiness #BusinessPodcast #Finance

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Episode 83 of The 401k Podcast breaks down the difference between your plan's in-plan Roth rollover and the mega backdoor Roth strategy. Lucas and Luna walk through IRS Notice 2014-54, the pro-rata rule, and why a 2026 plan change might let you move pre-tax money to Roth without a tax bomb. They use the example of a mid-career engineer at a mid-size tech firm who wants to maximize Roth savings. Plus: why many plans require a separate after-tax account and what happens to employer match money in the conversion. No jargon, just the math. And a brief note on why the show stays ad-free.

#401k #RothRollover #MegaBackdoorRoth #InPlanRoth #IRSNotice2014 #ProRataRule #RetirementSavings #AfterTaxContributions #EmployerMatch #TaxPlanning #Fidelity #Vanguard #Finance #RetirementPlanning #FexingoBusiness #BusinessPodcast #The401kPodcast #LucasAndLuna

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In this episode, Lucas and Luna explore the growing trend of 401k plans adding cryptocurrency investment options. They discuss the pros and cons, using Fidelity's 2022 Bitcoin offering as a case study, and explain what participants should consider before allocating retirement funds to crypto. The hosts also touch on regulatory developments and fiduciary responsibilities of plan sponsors.

#401k #Cryptocurrency #Bitcoin #Fidelity #RetirementPlanning #InvestmentOptions #FiduciaryResponsibility #DigitalAssets #PlanSponsors #EmployeeBenefits #Finance #Investing #Crypto401k #RetirementSavings #PortfolioDiversification #FexingoBusiness #BusinessPodcast #The401kPodcast

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In this episode of The 401k Podcast, Lucas and Luna explore the auto-portability feature now available in many 401k plans. Starting in 2024, the SECURE 2.0 Act paved the way for automatic transfer of small-balance retirement accounts when you change jobs. Lucas explains how the Portability Services Network works, the $1,000 threshold, and why an estimated 25 million forgotten 401k accounts could be consolidated. Luna asks about fees, opt-out rights, and whether this feature helps or hurts savers. A practical guide to a quietly transformative retirement policy.

#401k #AutoPortability #RetirementSavings #SECURE2.0 #PortabilityServicesNetwork #JobChange #RetirementAccounts #Forgotten401k #SmallBalance #Consolidation #Fiduciary #PlanSponsor #RetirementPolicy #Finance #PersonalFinance #FexingoBusiness #BusinessPodcast #LucasAndLuna

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Episode 80 of The 401k Podcast with Fexingo tackles what happens to your 401k balance when you go through a divorce. Lucas and Luna walk through the Qualified Domestic Relations Order (QDOR) process—what it is, why it must be court-approved, and the strict 60-day rollover window for the ex-spouse if they want to avoid taxes and penalties. They explain the difference between a QDOR and a standard rollover, the tax trap if the ex-spouse takes cash, and the often-overlooked deadline that trips people up. Using a real example of a $150,000 plan split, they show how a few days of delay can cost thousands. If you are mid-divorce or advising someone who is, this episode covers the mechanics and the gotchas. No fluff, just the rules that protect your retirement savings when a marriage ends.

#401k #Divorce #QDOR #RetirementPlanning #EmployerPlan #TaxRollover #SpousalRights #PlanSplit #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #RetirementSavings #ERISA #LegalDocuments #60DayRule #TaxPenalty #MaritalSettlement

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Episode 79 of The 401k Podcast with Fexingo unpacks the Roth match — a relatively new employer contribution option. Lucas explains how the SECURE 2.0 Act allows plans to deposit matching contributions into a Roth account, turning tax-deferred into tax-free growth. He walks through the mechanics: the match is taxable income in the year it's made, so participants need to plan for the tax bill. Luna asks how this changes employee saving behavior, and Lucas cites Vanguard data showing that plans offering Roth matches see higher Roth deferral rates. They also discuss why employers hesitate — administrative complexity and the lack of a tax deduction on the match. The episode closes with a practical tip: run a side-by-side Roth vs. pre-tax projection before opting in. Includes a brief, organic mention of listener support at buy me a coffee dot com slash fexingo.

#401k #RothMatch #SECURE2.0 #RetirementPlanning #EmployerMatch #TaxFreeGrowth #Roth401k #Vanguard #401kPodcast #Fexingo #BusinessPodcast #Finance #PersonalFinance #Retirement #Saving #Investing #RothVsTraditional #TaxPlanning

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In this episode of The 401k Podcast, Lucas and Luna break down the often-overlooked after-tax 401k contribution — not to be confused with Roth — and how it enables the so-called 'mega backdoor Roth' strategy. They explain the three-tier contribution system (pre-tax, Roth, after-tax), the annual limit for 2026 ($70,000 for under-50), and why most plans don't automatically allow in-plan Roth conversions. Using a concrete example of a married couple earning $350,000, they show how a mega backdoor Roth can add tens of thousands in tax-free growth. They also cover the 'ACP test' that can limit after-tax contributions for highly compensated employees and why checking your plan document matters. No hype, just the mechanics and caveats.

#MegaBackdoorRoth #AfterTax401k #RothConversion #401kPlan #RetirementSavings #TaxStrategy #EmployerPlan #FiduciaryRule #ACPTest #HighlyCompensated #InPlanRoth #ContributionLimit #TaxFreeGrowth #SECUREAct #Finance #RetirementPlanning #FexingoBusiness #BusinessPodcast

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Episode 77 of The 401k Podcast with Fexingo dives into auto-escalation—the automatic annual increase in your 401k contribution percentage. Lucas and Luna explain how this feature, often opt-out by design, can boost savings rates from 6% to 12% over six years without requiring any action. They break down a real-world case: a 30-year-old earning $60,000 who, with auto-escalation of 1% per year, could accumulate an extra $180,000 by retirement. The episode also covers common pitfalls like contribution limits, employer match caps, and how to opt out if needed. Tune in to learn why auto-escalation might be the easiest way to supercharge your nest egg.

#401k #AutoEscalation #RetirementSavings #EmployerMatch #CompoundInterest #BehavioralFinance #OptOut #SavingsRate #PlanDesign #Fiduciary #SECUREAct #QDIA #Finance #PersonalFinance #Investing #FexingoBusiness #BusinessPodcast #RetirementPlanning

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Episode 76 of The 401k Podcast breaks down the SECURE 2.0 changes to hardship withdrawals that took effect in 2024 and 2025, plus a new IRS rule from early 2026 that lets participants self-certify eligibility without employer review. Lucas and Luna walk through an example: a 42-year-old engineer at a mid-size manufacturer who needs emergency funds for medical bills. They explain the old rule requiring a 6-month contribution suspension, the 2024 change eliminating that suspension, and the 2026 self-certification shift. They also discuss how plan sponsors are handling the new rules and what participants should know before taking a hardship withdrawal instead of a loan. With listener-funded support via buy me a coffee dot com slash fexingo, the show stays ad-free and focused on actionable retirement plan insights.

#HardshipWithdrawal #SECURE2.0 #401kPlan #IRS #SelfCertification #RetirementSavings #EmergencyFunds #PlanSponsor #EmployerMatch #ContributionSuspension #Fidelity #Vanguard #EmployeeBenefits #PersonalFinance #Finance #RetirementPlanning #FexingoBusiness #BusinessPodcast

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