RETUPD Archives | Page 3 of 21

Q: What Is a Dead Cat Bounce?

A 'dead cat bounce' is a colorful way of describing an unexpected price jump that occurs after a long, slow decline — and typically just before another price drop.

Mar

2025

What Is a Dead Cat Bounce and How Can You Spot It?

By Ashley Kilroy | Growing Wealth, invest, Investing | Comments Off

A dead cat bounce refers to an unexpected price jump that occurs after a long, slow decline — and typically just before another price drop. In other words, the price jump isn’t “live” and typically doesn’t last.

The danger can be that the apparent rebound might create a false sense of value, momentum, or optimism. That said, some investors may be able to take advantage of a dead cat bounce to create a short position. Unfortunately, it’s usually hard to identify a dead cat bounce until after the fact.

Nonetheless, investors may want to know some of the signs of this price pattern, as it can help them gauge certain market movements.

Key Points

• A dead cat bounce refers to a temporary price jump after a decline, often followed by another drop.

• It is difficult to identify a dead cat bounce in real-time, making it challenging for investors to take advantage of it.

• Dead cat bounces can occur in individual stocks, bonds, or market sectors.

• Investors should be cautious when interpreting price movements and consider other factors before making investment decisions.

• Active investors may use technical analysis and market indicators to help identify potential dead cat bounces.

What Is a Dead Cat Bounce?

The phrase “dead cat bounce” comes from a saying among traders that even a dead cat will bounce if it’s dropped from a height that’s high enough.

Thus, when a security or market experiences a steady decline and then appears to bounce back — only to decline again — it’s often dubbed a dead cat bounce.

What can be puzzling for investors is that the bounce, or “recovery”, doesn’t have a rhyme or reason; it’s merely part of a short-term market variation, perhaps driven by market sentiment or other economic factors.

Knowing the Specifics

If you’re learning how to invest in stocks or invest online, bear in mind that a dead cat bounce is not used to describe the ups and downs of a typical trading day — it refers to a longer-term drop, rebound, and continued drop. The term wouldn’t apply to a security that’s continuing to grow in value. The spike must be brief, before the price continues to fall.

It’s also important to point out that this financial phenomenon can pertain to individual securities such as stocks or bonds, to stock trading as a whole, or to a market.

Why It Helps to Identify This Pattern

Even for experienced traders or short-term investors using sophisticated technical analysis, it can be difficult to identify a dead cat bounce. Sometimes a rally is actually a rally; sometimes a drop indicates a bottom.

The point of trying to distinguish whether the rise in price will continue or reverse is because it can influence your strategy. If you have a short position, and you anticipate that a rally in stock price will end in a reversal, you may want to hold steady.

But if you think the rally will continue, you may want to exit a short position.

Example of a Dead Cat Bounce

To illustrate a dead cat bounce, let’s suppose company ABC trades for $70 on June 5, then drops in value to $50 per share over the next four months. Between Oct. 7 and Oct. 14, the price suddenly rises to $65 per share — but then starts to rapidly decline again on Oct. 15. Finally, ABC’s stock price settles at $30 per share on Oct. 16.

This pattern is how a dead cat bounce might appear in a real-life trading situation. The security quickly paused the decline for a swift revival, but the price recovery was temporary before it started falling again and eventually steadied at an even lower price.

Recommended: How to Invest in Stocks

Historical Dead Cat Bounce Pattern

There are countless examples of the dead cat bounce pattern in stocks and other securities, as well as whole markets. One of the most recent affected the entire stock market during the COVID-19 pandemic.

The U.S. stock market lost about 12% during one week in February 2020, and appeared to revive the following week with a 2% gain. But it turned out to be a false recovery, and the market dipped back down again until later in the summer.

What Causes a Dead Cat Bounce?

A dead cat bounce is often the result of investors believing the market or security in question has hit its low point and they try to buy in to ride the turnaround. It can also occur as a result of investors closing out short positions.

Since these trends aren’t driven by technical factors, that’s why the bounce is typically short-lived — usually lasting a couple of days, or maybe a couple of months.

4 Signs of a Dead Cat Bounce

Although a dead cat bounce is typically not reflective of a stock’s intrinsic value, the dramatic price increase may tempt investors to jump on an investment opportunity before it makes sense to do so.

The following typical sequence of events may help an investor correctly identify a dead cat bounce as it might occur with a specific stock.

1. There is a gap down.

Typically the stock opens lower than the previous close, usually a significant amount like 5% (or perhaps 3% if the stock isn’t prone to volatility).

2. The security’s price steadily declines.

In a true dead-cat-bounce scenario, that initial gap down will be followed by a sustained decline.

3. The price sees a monetary gain for a short time.

At some point during the price drop, there will be a turnaround as the price appears to bounce back, close to its previous high.

4. A security’s price begins to regress again.

The rally is short, however, and the stock completes its dead cat bounce pattern with a final decline in price.

Dead Cat Bounce vs. Other Patterns

How do you know whether the pattern you’re seeing is really a classic dead cat bounce versus other types of movements? Here are some clues.

Dead Cat Bounce or Rally?

One way to assess a dead cat bounce with a particular stock is to consider whether the now-rising stock is still as weak as it was when its price was falling. If there’s no market indicator as to why the stock is rebounding, you might suspect a dead cat bounce.

Dead Cat Bounce or Lowest Price?

Since investors are looking for opportunities to profit, they try to find investment opportunities that allow them to buy low and sell high.

Therefore, when assessing investment opportunities, a successful investor might try to recognize emerging companies, and buy shares of a stock while the price is low, and before other investors get wind of a potential opportunity.

Since companies go through business cycles where stock prices fluctuate, pinpointing the lowest price point might be hard. There’s no way to know if a dead cat bounce is really happening until the prices have resumed their descent.

Dead Cat Bounce or Bear Market Bottom?

Investors may also confuse a dead cat bounce for the actual bottom of a bear market. It’s not uncommon for stocks to significantly rebound after the bear market hits bottom.

History shows that the S&P 500 often sees substantial gains within the first few months of hitting bottom after a bear market. But these rallies have been sustained, and thus are not a dead cat bounce.

Investing Strategies to Avoid a Dead Cat Bounce

For investors who want a more hands-on investing approach — meaning active investing vs. passive — it’s generally better to use investing fundamentals to evaluate a security instead of attempting to time the market (and risk mistaking a dead cat bounce for an opportunity).

Investors who are just starting may want to consider building a portfolio of a dozen or so securities. Picking a few stocks allows investors to monitor performance while giving their portfolio a little diversification. This means the investor distributes their money across several different types of securities instead of investing all of their money in one security, which in turn can help to minimize risk.

Active investors could also consider selecting stocks across varying sectors to give their portfolio even more diversification instead of sticking to one niche.

Investors with restricted funds might consider investing in just a few stocks while offsetting risk by investing in mutual funds or exchange-traded funds (ETFs).

For investors who would prefer not to execute an active investing strategy alone, they can speak with a professional manager. Working with a professional manager may help the investors better navigate the intricacies of various market cycles.

Limitations in Identifying a Dead Cat Bounce

As noted several times here, a dead cat bounce can’t really be identified with 100% certainty until after the fact. While some traders may believe they can predict a dead cat bounce by using certain fundamental or technical analysis tools, it’s impossible to do so every single time.

If there were a way to accurately predict market movements or different patterns, people would always try to time the market. But there are no crystal balls in investing, as they say.

The Takeaway

With 20-20 hindsight, investors and analysts can clearly see that an individual security or market has experienced a steady drop in value, a brief rebound, and then a further drop — a phenomenon known as a dead cat bounce.

Unfortunately, though, it can be too hard for most investors to distinguish between a dead cat bounce and a bona fide rally, or the bottom of a given market or security’s price. Still, knowing what to look for may help investors make more informed choices, especially when it comes to making a choice around keeping or closing out a short position.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at https://sofi.app.link/investchat. Please read the prospectus carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Claw Promotion: Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

SOIN-Q424-022

Mar

2025

Inherited IRA: Distribution Rules for Beneficiaries

Inherited IRA Distribution Rules Explained

By Ashley Kilroy | invest, Investing, Preparing for Retirement | Comments Off

The distribution rules for inheriting an IRA are complicated, and the SECURE Act of 2019 introduced some significant changes. Consequently, the inherited IRA rules are different for certain beneficiaries if the account holder died in 2020 or later, compared to the rules before that time.

An inherited IRA is governed by IRS rules about how and when the money can be distributed, and whether the beneficiary is an eligible designated beneficiary or a designated beneficiary.

Other factors that influence inherited IRA distributions include the age of the original account holder when they died and whether the account holder had started taking required minimum distributions (RMDs) before their death. The SECURE 2.0 Act added some new changes to this factor.

Read on to learn about inherited IRA distribution rules, the recent changes, and how they might affect you.

Key Points

• The SECURE Act and SECURE 2.0 made some significant changes to inherited IRAs.

• Spouse beneficiaries have the option to take a lump-sum, roll over the IRA into their own account, open an inherited IRA, or disclaim the IRA.

• Many non-spouse beneficiaries must withdraw all funds from an inherited IRA within 10 years.

• Exceptions to the 10-year rule apply to spouses, minor children, disabled individuals, and those within 10 years of the original account holder’s age, who are all considered eligible designated beneficiaries.

• Strategies to manage RMDs and minimize taxes include spreading out withdrawals rather than taking a lump sum, following the latest inherited IRA rules, and possibly consulting a tax professional.

What Is an Inherited IRA?

When an IRA owner passes away, the funds in their account are bequeathed to their beneficiary (or beneficiaries), who then have several options to choose from when considering what to do with the funds. The original account could be any type of IRA, such as a Roth IRA, traditional IRA, SEP IRA, or SIMPLE IRA.

If you inherit an IRA, the following conditions determine what you can do with the funds:

• Your relationship to the deceased account holder (e.g., are you a spouse or non-spouse)

• The original account holder’s age when they died

• Whether they had started taking their required minimum distributions (RMDs) before they died

• The type of IRA involved

Basic Rules About Withdrawals

There are a number of options available for taking inherited IRA distributions, depending on your relationship to the deceased. At minimum, most beneficiaries can either take the inherited funds as a lump sum, or they can follow the 10-year rule, which is one of the changes to the inherited IRA distribution rules that went into effect with the SECURE Act of 2019. (The previous rules allowed beneficiaries of inherited IRAs to stretch out withdrawals over their lifetime. Those rules are still in place if the original IRA account owner died before January 1, 2020.)

The 10-year rule regarding inherited IRAs means that the account must be emptied by the 10th year following the year of death of the original account holder.

The tax rules governing the type of IRA — Roth vs. traditional IRA — apply to the inherited IRA as well. So withdrawals from an inherited traditional IRA are taxed as income. Withdrawals from an inherited Roth IRA are generally tax-free (see more details about this below).

Exceptions for Eligible Designated Beneficiaries

Withdrawal rules for inherited IRAs are different for beneficiaries called “eligible designated beneficiaries” that they are for designated beneficiaries.

According to the IRS, an eligible designated beneficiary refers to:

• The spouse of the original account holder.

• A minor child under age 18.

• An individual who meets the IRS criteria for being disabled or chronically ill.

• A person who is no more than 10 years younger than the IRA owner.

If you qualify as an eligible designated beneficiary, and you are a non-spouse, here are the options that pertain to your situation:

• If you’re a minor child, you can extend withdrawals from the IRA until you turn 18.

• If you’re disabled or chronically ill, or not more than 10 years younger than the deceased, you can extend withdrawals throughout your lifetime.

¹Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

What Are the RMD Rules for Inherited IRAs?

Assuming the original account holder had not started taking RMDs, and you are the surviving spouse and sole beneficiary of the IRA, you have a few options:

• If you roll over the funds to your own IRA. With this option, you have to do an apples-to-apples rollover IRA (tax deferred IRA to tax deferred IRA, Roth to Roth.) Once rolled over, inherited funds become subject to regular IRA rules, based on your age. That means you have to wait to take distributions until you’re 59 ½ or potentially face a 10% penalty in the case of a tax-deferred account rollover.

RMDs from your own IRA are subject to your life expectancy (you can use the IRS Life Expectancy Table to determine what yours is) and generally begin once you reach age 73.

• If you move the funds to an inherited IRA. You can also set up an inherited IRA in order to receive the funds you’ve inherited. Again the accounts must match — so funds from a regular Roth IRA must be moved to an inherited Roth IRA.

Inherited IRAs follow slightly different rules. For example, you must take RMDs every year, but these can be based on your own life expectancy. Distributions from a tax-deferred account are taxable, but the 10% penalty for early withdrawals before age 59 ½ doesn’t apply.

If the original account holder had started taking RMDs, the spouse has to take RMDs in the year in which they died. After that, the spouse switches to taking their own RMDs from there on out every year.

Some people prefer to open their inherited IRA account with the same firm that initially held the money for the deceased. However, you can open an IRA with almost any bank or brokerage.

RMD Rules for Non-Spouses

If you are a non-spouse beneficiary, first determine whether you meet the criteria for an eligible designated beneficiary or a designated beneficiary.

• Eligible designated beneficiaries: As mentioned above, eligible designated beneficiaries include: chronically ill or disabled non-spouse beneficiaries; non-spouse beneficiaries not more than 10 years younger than the original deceased account holder; or a minor child of the account owner.

Most eligible designated beneficiaries can stretch withdrawals from the inherited IRA over their lifetime. However, once a minor child beneficiary reaches 18, they have 10 years to empty the account.

• Designated beneficiaries: These individuals must follow the 10-year rule and deplete the account by the 10th year following the year of death of the account holder. After that 10-year period, the IRS will impose a 25% penalty tax on any funds remaining.

In addition, because of changes introduced by SECURE 2.0 Act, if the original account holder had begun RMDs, beneficiaries must continue to take RMDs yearly, based on their own life expectancy, while emptying the account within 10 years. However, if the account holder had not started taking RMDs, beneficiaries don’t need to make annual withdrawals, but they still must take all of the money out of the account within 10 years.

Multiple Beneficiaries

If there is more than one beneficiary of an inherited IRA, the IRA can be split into different accounts so that there is one for each person.

Then, generally speaking, you must each start taking RMDs based on the type of beneficiary you are, as outlined above, and all assets must be withdrawn from each account within 10 years (aside from the exceptions noted above).

Recommended: Retirement Planning Guide

Inherited IRA Examples

These are some of the different instances of inherited IRAs and how they can be handled.

Spouse inherits and becomes the owner of the IRA: When the surviving spouse is the sole beneficiary of the IRA, they can opt to become the owner of it by rolling over the funds into their own IRA. The rollover must be done within 60 days.

This could be a good option if the original account holder had already started taking RMDs, because it delays the RMDs until the surviving spouse turns 73.

Non-spouse designated beneficiaries: An adult child or friend of the original IRA owner can open an inherited IRA account and transfer the inherited funds into it.

If the original account holder had begun RMDs, the beneficiary must take RMDs yearly, based on their own life expectancy, while emptying the account within 10 years. However, if the account holder had not started taking RMDs, the beneficiary does not need to make annual withdrawals, but they still must take all of the money out of the account within 10 years.

Both a spouse and a non-spouse inherit the IRA: In this instance of multiple beneficiaries, the original account can be split into two new accounts. That way, each person can proceed by following the RMD and distribution rules for their specific situation.

How Do I Avoid Taxes on an Inherited IRA?

Money from IRAs is generally taxed upon withdrawal, so your ordinary tax rate would apply to any tax-deferred IRA that was inherited, such as a traditional IRA, SEP IRA, or SIMPLE IRA.

However, if you have inherited the deceased’s Roth IRA, which allows for tax-free distributions, you should be able to make tax-free withdrawals of contributions and earnings, as long as the original account was set up at least five years ago (this is known as the five-year rule). As with an ordinary Roth account, you can withdraw contributions tax free at any time.

Common Mistakes to Avoid with Inherited IRAs

Because the rules for inherited IRAs are complex, it can be easy to make a mistake. Here are some common missteps to avoid.

Taking a lump-sum distribution. If you withdraw the entire amount of the IRA at once, you may be pushed into a higher tax bracket and get hit by a significant tax bill. Spreading out the distributions could help you stay in lower tax brackets.

Mixing up the inherited IRA rules before 2020 and after 2020. The rules are complicated and confusing. You need to know what kind of beneficiary you are, what your options are for receiving the inherited IRA, and when you need to start and finish taking distributions. Otherwise, you could face a penalty — or not be taking advantage of certain options you may have. IRS Publication 590-B spells out the rules. You might also want to consult with a trusted tax professional.

Neglecting to take RMDs. The rules regarding RMDs are different depending on the type of beneficiary you are, when the account holder passed away, and if that person had started taking RMDs. Make sure to follow the rules specific to your situation. Consider consulting a financial professional if you’re not sure.

Recent Changes and Updates to Inherited IRA Rules

As noted, the SECURE Act of 2019 introduced some changes that affect how inherited IRAs are handled. Designated non-spouse beneficiaries who inherited an IRA from an account holder who died in 2020 or later must empty the entire account within 10 years after the original owner’s death.

Furthermore, the SECURE 2.0 Act added some additional changes to the 10-year rule. If the original account holder had begun RMDs, beneficiaries must continue to take RMDs yearly, based on their own life expectancy, while emptying the account within 10 years. However, if the account holder had not started taking RMDs, beneficiaries don’t need to make annual withdrawals, but they still must take all of the money out of the account within 10 years.

Eligible designated beneficiaries, a category of beneficiary created by the SECURE Act of 2019, are generally not subject to these changes.

The Takeaway

Once you inherit an IRA, it’s wise to familiarize yourself with the inherited IRA rules and requirements that apply to your situation. No matter what your circumstances, inheriting an IRA account has the potential to put you in a better financial position for your own retirement.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Easily manage your retirement savings with SoFi.

FAQ

Are RMDs required for inherited IRAs?

In many cases, RMDs are required for inherited IRAs. The specific rules depend on the type of beneficiary a person is, whether the account holder died before or after 2020, and if they started taking RMDs before their death.

Spouse beneficiaries can generally take RMDs based on their own life expectancy and stretch the withdrawals over their lifetime. Designated non-spouse beneficiaries of an account owned by someone who passed away in 2020 or later may or may not need to take annual RMDs, depending on whether the original account holder had started taking them. But either way, they have to completely empty the account with 10 years.

What are the disadvantages of an inherited IRA?

The disadvantages of an inherited IRA include: knowing how to navigate and follow the complex rules regarding distributions and RMDs, and understanding the tax implications and potential penalties for your specific situation.

How do you calculate your required minimum distribution?

To help calculate your required minimum distribution, you can consult IRS Publication 590-B. There you can find information and tables to help you determine what your specific RMD would be.

How should multiple beneficiaries handle an inherited IRA?

If an inherited IRA has multiple beneficiaries, one way to handle it is to split it into different accounts — one for each beneficiary. Then the individual beneficiaries can each decide what to do with the funds.

One thing to keep in mind, though, is that if the account holder died in 2020 or thereafter, all assets must be withdrawn from the accounts of non-spouse designated beneficiaries within 10 years.

What are the options for a spouse inheriting an IRA?

A spouse inheriting an IRA has several options, including taking a lump-sum distribution, rolling the funds over to their own IRA account, opening an inherited IRA, and disclaiming or rejecting the inherited IRA, in which case the next beneficiary would get it.

Spouse beneficiaries will likely want to consider the possible tax implications of each option and how RMDs will need to be handled if they roll the funds over into their own account or open an inherited IRA. It may be wise for them to consult a financial professional.

Can a trust be a beneficiary of an IRA?

Yes, a trust can be a beneficiary of an IRA. In this case, the trust inherits the IRA and the IRA is maintained as an asset of the trust and managed by a trustee. A trustee is required to follow the wishes of the deceased, which might be an option for an account holder with young children or dependents with special needs.

However, there are disadvantages to having a trust as the beneficiary of an IRA. For example, if the original account holder had not begun taking RMDs before their death or the account is a Roth IRA, trust beneficiaries must typically fully distribute all assets within five years of the account owner’s death.

About the author

Ashley Kilroy

Photo credit: iStock/shapecharge

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOIN-Q125-080

Mar

2025

overhead view of businessman working, looking at business charts and graphs

How to Find the Right Fixed Index Annuity Rate for Your Needs

By Rebecca Lake | Growing Wealth, invest, Investing | Comments Off

Annuities are a type of insurance contract that investors can use to fund their retirement or meet other financial goals. When someone purchases an annuity, they pay premiums to the annuity issuer. The annuity company then makes payments back to the annuitant as agreed in the annuity contract.

Those payments can start almost immediately or be deferred to a future date. Payments can be made monthly, annually, or in a single lump-sum. Earnings from the annuity are typically tax-deferred and withdrawals are taxable as ordinary income.

Generally, annuities are indexed, fixed, or variable. With a fixed annuity, you’re guaranteed to earn a minimum rate of return, making them relatively safe investments. Variable annuity returns hinge on how underlying annuity investments, such as mutual funds, perform which can make them riskier. Indexed annuities strike a middle ground in terms of their risk/reward profile.

Annuities can provide a steady stream of income in retirement, something that might feature in many people’s investment goals. What’s important to keep in mind, however, is that rates of return generated can vary from one annuity to the next. It’s helpful to understand how to compare index annuity rates side by side to find the best one for your needs.

What Is an Indexed Annuity?

An indexed annuity, or fixed index annuity, is a specific type of annuity product that can yield a minimum guaranteed rate of return along with a rate of return that’s linked to a stock market index. For example, the annuity’s performance may be based on the performance of the S&P 500 Composite Price Index. This is a market capitalization-weighted index that represents 500 of the largest publicly traded U.S. companies.

This type of annuity may be suitable to investors who seek upside potential with built-in downside protection, while enjoying the benefits of tax-deferred growth. Indexed annuities may also be favorable among investors who lean toward a passive versus active investing strategy.

What Are Fixed Index Annuity Rates?

Fixed index annuity rates are the guaranteed minimum rate of return on an annuity. Rather than tracking with interest rates, the fixed index annuity rate is benchmarked against a particular index.

How Fixed Indexed Annuities Work

Fixed index annuities have two phases: the accumulation phase and the income phase.

Once you purchase a fixed indexed annuity, the accumulation phase begins. This is the period during which your annuity earns interest on a tax-deferred basis. The amount of money you have in the annuity, also referred to as the contract value, can fluctuate over time based on how the underlying index that the annuity tracks is performing.

Annuity returns are typically recalculated every 12 months, though the annuity contract should spell out how and when return calculations occur. It’s important to keep in mind that the contract may specify a cap rate, which represents the maximum positive rate of return an indexed annuity can earn.

The income or annuity phase is when payments are made back to you from the contract. These payments can be made periodically or be delivered in a single lump sum. Additionally, they can last for a specified time frame or for the duration of your natural life. If you’re married, indexed annuity payments can also continue to be paid to your spouse after you pass away. The annuity contract will detail the payment schedule.

For example, in the accumulation phase, an annuity might pay out a minimum of 3% with a 7% rate cap (even if the index is tracking at 11%). In the income phase, the fixed index annuity might be paid monthly starting at a predetermined date, and pay out across the lifetime of you and/or your spouse.

How Are Fixed Index Annuity Rates Set?

Broadly speaking, index annuity rates are tied to the index they track. So again, this could be an index like the S&P 500 Composite Price Index or the Nasdaq 100.

With a fixed index annuity, the annuity company guarantees a minimum interest rate alongside the interest rate generated by the underlying index.

When setting fixed index annuity rates, annuity contract providers typically use several factors to determine how much of a return is credited to the contract owner. The actual rate of return realized from an indexed annuity can depend on:

•  Cap rate
•  Participation rate
•  Margin/spread fees
•  Riders

Here’s more on how each one affects fixed index annuity rates.

Cap Rate

Cap rate represents the upper limit on returns that an annuity can earn over time. So for instance, an indexed annuity that has a 3.5% cap rate would limit the returns credited to the annuity owner to that amount—even when the underlying index produces a higher rate of return. Generally, cap rates fall somewhere between 3 and 7% per year.

Participation Rate

If the index an annuity tracks goes up, the participation rate determines how much of that gain is credited to an annuity owner. For instance, if the index increases by 10% and the participation rate is 80%, an 8% return would be credited.

Margin/Spread Fees

Also referred to as an administrative fee, this fee can deduct a set percentage from index gains. An indexed annuity that realizes a 10% gain and has a 3% spread fee, for example, would yield a net credited return of 7%.

Riders

Riders can be used to enhance fixed indexed annuity benefits. For instance, you might choose to add a rider that would guarantee lifetime income payments to your spouse if you’re married. Expanding the annuity’s coverage can result in added premium costs, which may reduce credited returns.

What Is a Good Fixed Index Annuity Rate?

A “good” fixed index annuity rate is one that results in a rate of return that aligns with your objectives and needs. Index annuity rates can also vary based on the length of the contract term. Cost is also an important consideration, as indexed annuities can charge a variety of fees, including administrative fees and surrender charges, which may apply if you decide to cancel an annuity contract.

The top index annuities are the ones that offer the best combination of high rates and low fees. It’s also important to consider an annuity company’s ratings before purchasing an indexed annuity. Annuity Advantage can offer insight into how financially healthy an annuity provider is and how likely they are to be able to make annuity payments back to you when the time comes.

Is an Indexed Annuity Right for You?

Fixed index annuities can offer the potential to earn higher rates of return compared to traditional fixed annuities. At the same time, they may be less risky than a variable annuity product since they track an index rather than investing in the market directly.

Investment risk management is an important part of any strategy for growing wealth, even when you’re starting from scratch with building an investment portfolio. Indexed annuities aim to help with balancing that risk while creating an ongoing stream of income to rely on in retirement.

That said, it’s also important to consider how fixed index annuity rates compare to the rate of return one could earn by investing in the market directly. For example, you may see better returns by investing in individual stocks. That does involve taking more risk but individuals with a longer timeline until retirement generally have a broader window to recover from market downturns.

The Takeaway

A fixed index annuity offers investors a minimum guaranteed rate of return along with a rate of return that’s linked to a stock market index. While fixed indexed annuities do offer some advantages, they may not suit every investor and it’s important to research index annuity rates to find the right one.

If you’re in the early stages of building a portfolio, SoFi Invest is a great place to start. Whether you want to begin investing in ETFs or stocks, or you prefer hands-on investing or an automated approach, SoFi Invest can help.

Find out how to invest with SoFi.

About the author

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN0523071

Mar

2025

Finding Your Old 401k: Here's What to Do

How to Find an Old 401(k)

By Rebecca Lake | Growing Wealth, invest, Investing, Preparing for Retirement | Comments Off

Tracking down an old 401(k) may take some time, and perhaps the quickest way to find old 401(k) money is to contact your former employer to see where the account is now. It’s possible that your lost 401(k) isn’t lost at all; instead, it’s right where you left it.

In some cases, however, employers may cash out an old 401(k) or roll it over to an IRA on behalf of a former employee. In that case, you might have to do a little more digging to find lost 401(k) funds. If you ever wished you could click on an app called “Find my 401(k),” the following strategies may be of use.

Key Points

• Contacting previous employers is a primary method for locating old 401(k) accounts.

• Old account statements can be useful for directly reaching out to 401(k) providers.

• Government agencies keep records that can help track down old 401(k) plans.

• National registries may list unclaimed retirement benefits, searchable by Social Security number.

• Recovered 401(k) funds can be rolled over into another retirement account or cashed out.

4 Ways to Track Down Lost or Forgotten 401(k) Accounts

There’s no real secret to how to find old 401(k) accounts. But the process can be a little time consuming as it may require you to search online or make a phone call or two. But it can be well worth it if you’re able to locate your old 401(k).

There are several ways to find an old 401(k) account. Here are a handful that may prove fruitful.

1. Contact Former Employers

The first place to start when trying to find old 401(k) accounts is with your previous employer.

If you had more than $5,000 in your 401(k) at the time you left your job, it’s likely that your account may still be right where you left it. In that case, you have a few options for what to do with the money:

• Leave it where it is

• Transfer your 401(k) to your current employer’s qualified plan

• Rollover the account into an Individual Retirement Account (IRA)

• Cash it out

When your plan balance is less than $5,000 your employer might require you to do a 401(k) rollover or cash it out. If you’re comfortable with the investment options offered through the plan and the fees you’ll pay, you might decide to leave it alone until you get a little closer to retirement. On the other hand, if you’d like to consolidate all of your retirement money into a single account, you may want to roll it into your current plan or into an IRA.

Cashing out your 401(k) has some downsides. You would owe taxes on the money, and likely an early withdrawal penalty as well. So you may only want to consider this option if your account holds a smaller amount of money. If you had less than $5,000 in your old 401(k), it’s possible that your employer may have rolled the money over to an IRA for you or cashed it out and mailed a check to you.

Recommended: How Does a 401(k) Rollover Work?

2. Track Down Old Statements

If you have an old account statement, you can contact your 401(k) provider directly to find out what’s happened to your lost 401(k). This might be necessary if your former employer has gone out of business and your old 401(k) plan was terminated.

When a company terminates a 401(k), the IRS requires a rollover notice to be sent to plan participants. If you’ve moved since leaving the company, the plan administrator may have outdated address information for you on file. So you may not be aware that the money was rolled over.

Either way, your plan administrator should be able to tell you which custodian now holds your lost 401(k) funds. Once you have that information, you could reach out to the custodian to determine how much money is in the account. You can then decide if you want to leave it where it is, roll it over to another retirement account, or cash it out.

3. Check With Government Agencies

Different types of retirement plans, including 401(k) plans, are required to keep certain information on file with the IRS and the Department of Labor (DOL). One key piece of information is DOL Form 5500. This form is used to collect data for employee benefit plans that are subject to federal ERISA (Employee Retirement Income Security Act) guidelines.

How does that help you find your 401(k)? The Department of Labor offers a Form 5500 search tool online that you can use to locate lost 401(k) plans. You can search by plan name or plan sponsor. If you know either one, you can look up the plan’s Form 5500, which should include contact information. From there, you can reach out to the plan sponsor to track down your lost 401(k).

4. Search National Registries

Another place to try is the National Registry of Unclaimed Retirement Benefits. This is an online database you can use to search for an unclaimed 401(k) that you may have left with a previous employer. You’ll need to enter your Social Security number to search for lost retirement account benefits.

In order for your name to come up in the search results, your former employer must have entered your name and personal information in that database. If they haven’t done so, it’s possible you may not find your account this way.

💡 Quick Tip: Want to lower your taxable income? Start saving for retirement with a traditional IRA. The money you save each year is tax deductible (and you don’t owe any taxes until you withdraw the funds, usually in retirement).

¹Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

What Should I Do With Recovered Funds?

If you do manage to recover an old 401(k) account and its assets, you’ll have some options as to what to do with it. In many cases, it might be a good idea to roll it over into another retirement account to try and stay on track with your retirement savings.

Another important point to consider: If you’ve changed jobs multiple times, it’s possible that you could have more than one “lost” 401(k) — and taken together, that money could make a surprising difference to your nest egg.

Last, if you were lucky to have an employer that offered a matching 401(k) contribution, your missing account (or accounts) may have more money in them than you think. For example, a common employer match is 50%, up to the first 6% of your salary. If you don’t make an effort to find old 401(k) accounts, you’re missing out on that “free money” as well.

But if you’re unsure of what to do, it may be worth speaking with a financial professional for guidance.

Further, if you’re not able to find lost 401(k) accounts you still have plenty of options for retirement savings. Contributing to your current employer’s 401(k) allows you to set aside money on a tax-deferred basis. And you might be able to grow your money faster with an employer matching contribution.

What if you’re self-employed? In that case, you could choose to open a solo or individual 401(k). This type of 401(k) plan is designed for business owners who have no employees or only employ their spouses. These plans follow the same contribution and withdrawal rules as traditional employer-sponsored 401(k) plans, though special contribution rules apply if you’re self-employed.

💡 Quick Tip: The best stock trading app? That’s a personal preference, of course. Generally speaking, though, a great app is one with an intuitive interface and powerful features to help make trades quickly and easily.

The Takeaway

There are several ways to try and find an old 401(k) account, but for most people, the best place to start is by contacting your old employers to see if they can help you. From there, you can also try reaching out to government agencies, tracking down old statements, or even searching through databases to see what you can find.

Saving for retirement is important for most people who are trying to reach their financial goals – as such, if you have money or assets in a retirement account, it may be worthwhile to try and track it down. Again, it may be worth consulting with a financial professional if you need help.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help grow your nest egg with a SoFi IRA.

FAQ

Is it possible to lose your 401(k)?

It’s possible to lose money from your 401(k) if you’re cashing it out and taking a big tax hit or your investments suffer losses. But simply changing jobs doesn’t mean your old 401(k) is gone for good. It does, however, mean that you may need to spend time locating it if it’s been a while since you changed jobs.

Do I need my social security number to find an old 401(k)?

Generally, yes, you’ll need your Social Security number to find a lost 401(k) account. This is because your Social Security number is used to verify your identity and ensure that the plan you’re inquiring about actually belongs to you.

What happens to an unclaimed 401(k)?

Unclaimed 401(k) accounts may be liquidated or converted to cash if enough time passes, and that cash could be transferred to a state government, where it will be held as unclaimed property.

Can a financial advisor find old 401(k) accounts?

A financial advisor may be able to help, but the simplest way to find old 401(k) accounts is contacting your former employer. It’s possible your money may still be in your old plan and if not, your previous employer or plan administrator may be able to tell you where it’s been moved to.

About the author

Rebecca Lake

You may also be interested in:

How to Roll Over Your 401(k): Knowing Your Options

What Happens to Your 401(k) When You Leave Your Job?

Guide to Transferring 401(k) to a New Job

Photo credit: iStock/svetikd

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Mar

2025

What Is an Equal-Weighted Index? How to Calculate It

By Rebecca Lake | Growing Wealth, invest, Investing | Comments Off

An equal-weight index gives each constituent in a market index the same weight versus a market-cap-weighted or price-weighted index, where bigger companies (or those trading at higher prices) hold a larger share of the index.

Equal weighting strives to equalize the impact of each company’s performance on the overall index. Traditional market-cap weighting tends to give bigger companies more influence over outcomes. Equal-weight investing is a smart beta strategy that may appeal to certain types of investors more than others.

Key Points

• An equal-weighted index assigns the same weight to each component, regardless of market capitalization.

• Calculation involves dividing the total number of components into 100 to find the weight per component.

• Rebalancing is necessary to maintain equal weighting, typically done quarterly or annually.

• Performance can differ significantly from market-cap weighted indexes due to equal representation.

• Potential benefits include increased diversification and reduced concentration risk in larger stocks.

What Is an Equal-Weighted Index?

A stock market index tracks the performance of a specific group of stocks or a particular sector of the market. For example, the S&P 500 Composite Stock Price Index tracks the movements of 500 companies that are recognized as leaders within their respective industries.

Stock market indexes are often price-weighted or capitalization-weighted.

• In a price-weighted index, the stocks that have the highest share price carry the most weight. In a capitalization-weighted index, the stocks with the highest market capitalization carry the most weight.

• Market capitalization represents the value of a company as measured by multiplying the current share price by the total number of outstanding shares.

While some investors may wish to invest in stocks, others may be interested in mutual funds or index funds, which are like a container holding many stocks.

How Equal Weighting Works

An equal-weighted index is a stock market index that gives equal value to all the stocks that are included in it. In other words, each stock in the index has the same importance when determining the index’s value, regardless of whether the company is large or small, or how much shares are trading for.

An equally weighted index essentially puts all of the stocks included in the index on a level playing field when determining the value of the index. With a price-weighted or capitalization-weighted index, on the other hand, higher-priced stocks and larger companies tend to dominate the index’s makeup — and thereby dictate or influence the overall performance of that index.

This in turn influences the performance of corresponding index funds, which track that particular index. Because index funds mirror a benchmark index, they are considered a form of passive investing.

Most exchange-traded funds (ETFs) are passive funds that also track an index. Now there are a growing number of actively managed ETFs. While equal-weight ETFs are considered a smart beta strategy, they aren’t fully passive or active in the traditional sense. These funds do track an index, but some active management is required to rebalance the fund and keep the constituents equally weighted.

Examples of Equal-Weight Funds

Equal-weight exchange-traded funds (ETFs) have grown more common as an increasing number of investors show interest in equal-weight funds. Equal weight falls under the umbrella of smart-beta strategies, which refers to any non-market-capitalization strategy.

The term “smart beta” doesn’t mean a particular strategy is better or more effective than others.

Equal-weight funds, for example, are designed to shift the weight of an index and its corresponding funds away from big-cap players, which can unduly influence the performance of the index/fund. And while an equal-weight strategy may have improved fund performance in some instances, the results are not consistent.

Here is a list of some of the top five equal-weight ETFs by assets under management (AUM):

1. Invesco S&P 500 Equal Weight ETF (RSP )

2. SPDR S&P Biotech (XBI )

3. SPDR S&P Oil and Gas Exploration and Production (XOP )

4. SPDR S&P Global Natural Resources ETF (GNR )

5. First Trust Cloud Computing ETF (SKYY )

How to Calculate Equal-Weighted Index

To calculate equal weighted index, you need to know two things:

• The share price of each stock that’s included in the index

• Total number of stocks included in the index

If you’re calculating an equally weighted index value for an index that has five stocks in it, each one would be weighted 20%, regardless of its stock price or market capitalization. To find an equal-weighted index value, you would simply add the share price of each stock together, then multiply it by the weight.

So for example, say an index has five stocks priced at $100, $50, $75, $90 and $85. Each one would be weighted at 20%.

Following the formula, you would add each stock’s price together for a total of $400. You’d then multiply that by the 20% weighting to arrive at an equal-weighted value of 80.

As fund turnover occurs and new assets are exchanged for old ones, or as share prices fluctuate, the equally weighted index value must be recalculated.

The equally weighted index formula can be used to determine the value of a particular index. You may want to do this when determining which index ETF to invest in or whether it makes sense to keep a particular index mutual fund in your portfolio.

Advantages of Using an Equally Weighted Index

An index investing strategy might be preferable if you lean toward more conservative investments or you simply want exposure to a broad market index without concentrating on a handful of stocks. That’s something you’re less likely to get with mutual funds or ETFs that follow a price-weighted or capitalization-weighted index.

Here are some of the reasons to consider an equal-weighted index approach:

• An equal-weight strategy can increase diversification in your portfolio while potentially minimizing exposure to risk.

• It’s relatively easy to construct an equally weighted portfolio using index mutual funds and ETFs.

• It may appeal to value investors, since there’s less room for overpriced stocks to be overweighted and undervalued stocks to be underweighted.

• Equal-weighted index funds may potentially generate better or more incremental returns over time compared to price-weighted or capitalization-weighted index funds, but there are no guarantees.

Disadvantages of Using Equally Weighted Index

While there are some pros to using an equal weighted approach, it may not always be the best choice depending on your investment goals. In terms of potential drawbacks, there are two big considerations to keep in mind:

• Equal-weighted index funds or ETFs that have a higher turnover rate may carry higher expenses for investors.

There is typically a constant buying and selling of assets that goes on behind the scenes to keep an equal-weighted mutual fund or ETF in balance.

Higher turnover ratios, or, how often assets in the fund are swapped in and out, can lead to higher expense ratios if a fund requires more active management. The expense ratio is the price you pay to own a mutual fund or ETF annually, expressed as a percentage of the fund’s assets. The higher the expense ratio, the more of your returns you hand back each year to cover the cost of owning a particular fund.

• Equal-weighted indexes can also be problematic in bear market environments, which are characterized by an overall 20% decline in stock prices. During a recession, cap-weighted funds may outperform equal-weighted funds if the fund is being carried by a few stable, larger companies.

◦ Conversely, an equal-weighted index or fund may miss out on some of the gains when markets are strong and bigger companies outperform.

Advantages	Disadvantages
Can further diversify a portfolio	Will typically have higher costs
Constructing an equal-weight portfolio is straightforward	May see outsize declines in bear markets
Equal-weight strategies may appeal to value investors	May not realize full market gains
Equal-weight strategies may perform better than traditional strategies, but there are no guarantees

The Takeaway

In an equal-weight index, each stock counts equally toward the index’s value, regardless of whether the company is large or small, or what shares are currently trading for. The same is true of any corresponding fund.

There are advantages to investing in an equal-weight index fund over a capitalization-weighted index or price-weighted index. For example, equal-weighted indexes may generate better or more consistent returns. Investing in an equal-weight index may be appealing to investors who prefer a value investing strategy or who want to diversify their portfolio to minimize risk.

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

How do equal-weight ETFs work?

Like an equal-weight index, an equal-weight ETF holds the same proportion of each of its constituents, which in theory may equalize the impact of different companies’ performance.

When should you buy equal-weighted ETFs?

If you’d like to invest in a certain sector, but you don’t want to be riding the coattails of the biggest companies in that sector because you see the value in other players, you may want to consider an equal-weight ETF.

What is the equally weighted index return?

The return of an equally weighted index would be captured by the performance of an investment in a corresponding index fund or ETF. So if you invest $100 in Equal Weight Fund A, which tracks an equal weight index, and the fund goes up or down by 5%, you would see a 5% gain or loss.

About the author

Rebecca Lake

You may also be interested in:

SOIN-Q424-029

What Is a Dead Cat Bounce?

Knowing the Specifics

Why It Helps to Identify This Pattern

Example of a Dead Cat Bounce

Historical Dead Cat Bounce Pattern

What Causes a Dead Cat Bounce?

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, alternative investments, IRAs, and more. Get started in just a few minutes.

4 Signs of a Dead Cat Bounce

1. There is a gap down.

2. The security’s price steadily declines.

3. The price sees a monetary gain for a short time.

4. A security’s price begins to regress again.

Dead Cat Bounce vs. Other Patterns

Dead Cat Bounce or Rally?

Dead Cat Bounce or Lowest Price?

Dead Cat Bounce or Bear Market Bottom?

Investing Strategies to Avoid a Dead Cat Bounce

Limitations in Identifying a Dead Cat Bounce

The Takeaway

What Is an Inherited IRA?

Basic Rules About Withdrawals

Exceptions for Eligible Designated Beneficiaries

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1

What Are the RMD Rules for Inherited IRAs?

RMD Rules for Non-Spouses

Inherited IRA Examples

How Do I Avoid Taxes on an Inherited IRA?

Common Mistakes to Avoid with Inherited IRAs

Recent Changes and Updates to Inherited IRA Rules

The Takeaway

FAQ

Are RMDs required for inherited IRAs?

What are the disadvantages of an inherited IRA?

How do you calculate your required minimum distribution?

How should multiple beneficiaries handle an inherited IRA?

What are the options for a spouse inheriting an IRA?

Can a trust be a beneficiary of an IRA?

What Is an Indexed Annuity?

What Are Fixed Index Annuity Rates?

How Fixed Indexed Annuities Work

How Are Fixed Index Annuity Rates Set?

Cap Rate

Participation Rate

Margin/Spread Fees

Riders

What Is a Good Fixed Index Annuity Rate?

Is an Indexed Annuity Right for You?

The Takeaway

4 Ways to Track Down Lost or Forgotten 401(k) Accounts

1. Contact Former Employers

2. Track Down Old Statements

3. Check With Government Agencies

4. Search National Registries

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1

What Should I Do With Recovered Funds?

The Takeaway

FAQ

Is it possible to lose your 401(k)?

Do I need my social security number to find an old 401(k)?

What happens to an unclaimed 401(k)?

Can a financial advisor find old 401(k) accounts?

You may also be interested in:

What Is an Equal-Weighted Index?

How Equal Weighting Works

Examples of Equal-Weight Funds

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, alternative investments, IRAs, and more. Get started in just a few minutes.

How to Calculate Equal-Weighted Index

Advantages of Using an Equally Weighted Index

Disadvantages of Using Equally Weighted Index

The Takeaway

FAQ

How do equal-weight ETFs work?

When should you buy equal-weighted ETFs?

What is the equally weighted index return?

You may also be interested in:

JOIN THE COMMUNITY

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.¹

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.¹

Student Loan
Refinancing

Personal
Loans

Online
Investments