A 401(k) account is a tax-deferred retirement savings account setup by many employers for their employees in the United States. Employees can elect to contribute part of their earnings - either pre-tax or after-tax - to their 401k account and the employer will often make a matching contribution for ...

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48 views

Clarification on 2015 IRA Rollover Limits

I've run into an issue in my personal finance journey that many people now struggle with: having a collection of 401k and 403b accounts left over from previous employers, some of which have been ...
5
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1answer
64 views

Can assets be transferred from an existing employer 401k to an Individual 401k?

I've been considering opening an Individual 401k account with Vanguard. I chose this, opposed to a SEP IRA, because of the higher contribution limits and the dual contribution options (as employee and ...
12
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3answers
6k views

Want to retire at 55, but 401k starts paying at 59.5 years old

Right now, I am on my late 20's, and I have this plan on retiring at 55 years old, instead of the usual retirement age of 62. For this, I plan to save money enough to cover my expenses from the day of ...
3
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1answer
35 views

Can I deduct IRA contribution even though job offers a 401k which I don't contribute to?

My job offers a 401k, but I don't contribute to it (because it doesn't have a match). Instead, I would rather contribute to an IRA where I can control what I invest in exactly. Here's what the IRS ...
3
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0answers
85 views

Over-payment by ex-employer into 401k

I left my old employer on 3/10/2014, however, I left my 401k there. Today I received an email indicating that they over-paid into my account $500 and that i need to identify which funds I want to ...
2
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1answer
57 views

Clarification on maintaining 401 K Account with Ex-Employer? [duplicate]

A year ago, I changed my job and holding new 401K with my current Employer. I have not transferred my previous 401 K account to my new Employer. I still maintain my existing 401 K account with my ...
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1answer
45 views

Pre- & post-tax calculations for comparing contribution amounts for traditional 401k vs. Roth IRA?

I currently have a rollover IRA which I no longer contribute to and a 401k which I currently contribute to. I would like a Roth account to be more diversified from a tax perspective. I currently put ...
3
votes
1answer
37 views

401k Transfer After Business Closure

I worked at a company for 4 years; they had my 401k set up through paychex. My paychecks started bouncing and soon the business was closed (it was part of a franchise and individually owned). A few ...
14
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1answer
2k views

Is an employer within their rights to limit 401k contributions to 25% of compensation?

I would like to ask a specific question regarding employer limitations on 401k contributions. I have read other posts in the forum that explain that limitations often exist on highly compensated ...
6
votes
1answer
113 views

What happens when my 401K beneficiary is not my child, nor spouse?

I'm single and no child. My 401K beneficiary is my nephew. Should I pass away and he "inherits" my 401K, what will happen to it? How much will he be taxed for it? Is there a way to avoid any ...
0
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1answer
91 views

I received half of my ex-husband's 401k in 2014, paid penalty fee, no income in 2014, should i file federal income tax for 2014?

I got divorced in 2013,I got half of my ex_husband's 401k.The early withdrawal penalty was determined and prepaid by the settlement amount. no income for the year 2014, should i still file federal ...
4
votes
2answers
418 views

What penalties exist when moving from a Roth IRA into 401K?

The move from investing in a Roth IRA to having an employer-provided 401K is the only move that I can find information on. For the past fifteen years or so I've managed a Roth IRA for myself (and for ...
1
vote
1answer
99 views

Should I cash out retirement accounts to pay off student loan debt?

I have an opportunity to cash out my retirement. I have a student loan owing approx $180,000 for medical education. This loan acquires interest daily and I have been unable to get from under this ...
2
votes
1answer
683 views

401k unwanted auto enrollement

I haven't asked for this and my employer 'auto-enrolled' me to 401k. I called Fidelity to take me off but they didn't do it which make me angry. Today I got their Ad email saying Keep in mind ...
5
votes
2answers
225 views

If I'm eligible to max a Roth IRA, Do I ever considering putting money in both IRA types instead?

Age 28 (Turn 29 in November) Gross Income - 110,050 Retirement (At the start of 2015) - $12,000 in Roth IRA My current contribution for the year is aimed at: 9,000 in Roth 401k 9,000 in ...
2
votes
5answers
273 views

Are Roth 401(k) after-tax contributions at a disadvantage for maximizing employer match money?

I feel like there is a negative to Roth 401(k)s that I haven't seen mentioned anywhere after doing some major research. Assuming the employer match amount is a percentage of the after-tax amount that ...
1
vote
3answers
212 views

New 401(k) account, barely funded: can I withdraw penalty-free?

I established a new 401(k) account with my previous employer. I made a total of $600 in contributions ($100 x 6). I don't want to keep this 401(k). First, 401(k) is not my preferred investment ...
3
votes
2answers
731 views

Why shouldn't I consider a 401k loan to myself within my bond allocation?

I have seen broad advice against 401k loans. I question this. Why shouldn't I consider a 401k loan to myself within my bond allocation? Assuming I have trust in my employment cash flow and taxable ...
2
votes
3answers
280 views

Can I cash out my 401k every year (company match > withdrawal penalty)? [duplicate]

My company offers a 401k 50% match up to 6% of salary, but I'm restricted to picking one of a set of investment portfolios. My thinking is, could I max out the 6% every year, get the full 50% match, ...
3
votes
2answers
60 views

In a retirement account, is there any reason to purchase deferred annuities now instead of near retirement?

There are lots of sources online that talk about how if you are saving your retirement money within a tax-sheltered account (401k, 403b, etc), you are likely better off with mutual fund investments ...
4
votes
3answers
171 views

What are the down sides of maxing out the 401k?

Please advise me whether I understand this correctly: The benefits of maxing out the 401k: Your contributions are tax-deductible, so it lowers your income during tax filling As your money grows ...
4
votes
2answers
101 views

Capital gains tax: Retirement vehicle (IRA, 401k) vs. anything else?

I've had this question for a little while and I asked a professional about it today, but I don't think I worded it well. As such, I didn't get a good answer. Theoretically, given an equivalent amount ...
3
votes
1answer
106 views

Is 401k considered a retirement plan offered by an employer?

I am trying to brush up on traditional IRA offerings out there. Specifically, I want to know whether the IRA contribution is tax deductible. The rules state that I can deduct the full contribution ...
4
votes
1answer
269 views

How much total salary to allocate to defer $17,500 to 401(k)?

From my small business, I would like to contribute to my wife's retirement (which also reduces taxable income to the company). My question is about how much total salary should be allocated to her to ...
3
votes
1answer
86 views

How to decide for 401(k): Make Roth post-tax contributions, or traditional pre-tax contributions?

My company's plan will let me put funds into the 401k plan either pretax (traditional, with taxes taken at withdrawal) or Roth-style (post -tax nut no tax at withdrawal) or both. Any company match ...
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1answer
114 views

401k contributions explanation

I have a basic question on 401k investment. Below is what my company is matching: XYZCompany will match your contributions, up to 4% of your eligible compensation, to a maximum of $10,600. Now ...
4
votes
3answers
229 views

Advantage of Traditional 401k over Roth

I am trying to understand the differences and benefits of putting money in Traditional 401k over Roth 401k. If I have to still pay tax while withdrawing money from my Traditional (pre tax) 401K after ...
2
votes
2answers
201 views

Ray Dalio - All Weather Portfolio

I am in a difficult situation right now where I need some expert advice. I recently finished reading Tony Robbin's Money Master the Game book and he talks about Ray Dalio All Weather Portfolio ...
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1answer
78 views

401K or Indian CD

I am debating on contributing to 401k(which is being invested fully) va putting a sum (say $10k) in Indian CD. I am assuming investment in stocks would return about 6-8% where as Indian CD would ...
3
votes
2answers
285 views

Does a 401(k) contribution harm your Debt-to-Income ratio for a mortgage application?

If I contribute to a 401(k) at work, and thus have a lower W-2 income box 1 (Wages, tips, other compensation), will this hurt my debt-to-income (DTI) ratio on a mortgage application? I wouldn't think ...
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1answer
58 views

Contribute Federal and State withholdings to company 401k instead?

So I am attempting to devise a way to max my company retirement account. They offer 3% of my annual pay if I put in at least 6% of my annual pay. The problem is that I don't want to take a giant ...
3
votes
1answer
66 views

Multi-year delayed 401k payout check cash, which was originally a rollover into a new plan

Here's the chain of events, not all of which I was aware of before this week: In 2010, I started working for a company and diverting money into a 401k In 2012, the company was purchased, and I ...
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2answers
127 views

Maximize my 401K and IRA, or save more for home downpayment?

I graduated a year and a half ago, and for the past year I have been maximizing my 401K and Roth IRA contributions. I further save for a house downpayment. Due to a recent surge in house prices, I ...
6
votes
1answer
164 views

Do overall 401(k) contribution limits sum across employers?

Assume I have a day job that has a 401(k) with no matching and I am also self-employed. I'm considering structuring my side business as an S corp and setting up a solo 401(k) in addition to the 401(k) ...
0
votes
3answers
88 views

Should I contribute to my 401k with a high expense ratio and no matching?

This is similar to this question (I can't comment yet so that's why I'm making this new question. The OP didn't mention anything about not having matching etc..): Still invest in 401K with a high ...
0
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1answer
129 views

Are 401K loan repayments considered tax deductible?

I took out a 401k loan 1.5 years back for a home down payment. The loan had a 36 month term, and I was making payments thro' payroll deductions from my employer. I recently quit that job, and I am ...
2
votes
1answer
197 views

Would you liquidate your 401k to pay off debt in this situation?

I have a potentially complex situation that I am looking to resolve in the least painful way possible. I am going through a divorce. My income is nearly twice as much as my ex's, and I am going to ...
1
vote
1answer
46 views

Optimal balence of 401K and charitable savings

I'm trying to figure out the optimal manner to donate the most money to charity. I currently donate all excess income to charity, minus the money I keep for emergencies. Donating to charity is ...
1
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2answers
162 views

Why can't 401(k) statements be delivered electronically?

I called Schwab and they just said, "401(k) accounts are not eligible for paperless confirmations and statements. It's the law. Sorry." I can't find any reference to this law in the Google. The ...
0
votes
1answer
47 views

Self-Employed Individual 401k Contribution Tax Questions

If as an unincorporated self-employed person, one contributed x dollars to my individual 401(k) personally y dollars to my individual 401(k) as my own employer How are these two numbers reflected ...
2
votes
1answer
57 views

Still invest in 401K with a high expense ratio?

I know that a low expense ratio is preferred. But what if the expense ratio is above the threshold limit (e.g 1.20%+), do you still invest in a 401K or not bother at all?
3
votes
1answer
88 views

Including 401(k) contributions on Canadian tax return

I am a Canadian resident who made US income, and contributed to a 401k. I know I must include my 401k contributions on my foreign income, but what about my employer's contributions? Also, what are ...
0
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0answers
87 views

401k plan employee rights?

Is it legal for my employer to know what I'm doing with my money that is in the 401k, that comes from my employer, without my consent? Is the financial services company that manages my 401k permitted ...
4
votes
4answers
252 views

Could my employer give me a raise in terms of employer 401k contributions instead of salary?

Personal contributions to a 401(k) are capped at $18,000 per year, but personal + employer contributions are capped at $52,000 per year, and I'm already maxing out my 401k. Assuming I was eligible ...
7
votes
1answer
230 views

Can I contribute to a 401k for employer matching and then immediately withdraw it?

I have some friends who work at a company which offers 50% 401k matching up to some amount, but they don't take advantage of it because they want to use the money for non-retirement purposes. Ignoring ...
3
votes
1answer
91 views

What are the trading cost differences between stocks and mutual funds in 401k account?

I am confused about the mutual fund investment minimums and buying commission fees. I've been searching these question on the internet but no good answers. Hope someone can answer my questions below ...
2
votes
2answers
212 views

Am I investing properly for my future?

What should my next step be? I apologize in advance for the length of the post. I consider myself to be in a good standing, but I'm always looking for ways to improve. Student loans: I graduated ...
3
votes
3answers
1k views

Is it worth contributing to my 401k if I will only stay with the company a short time?

I have recently become eligible for my employer's 401k plan. For reasons that I will not discuss here, I do not intend to stay at my current employer for longer than another year or so at most, ...
0
votes
0answers
40 views

Xfer 401K after starting distribution to another 401K or alternate plan

Retired at end of 1st qtr 2013 - age 64. Started drawing monthly distribution from this plan right after retiring. Would it be possible to xfer the balance of this 401K to another 401K or some other ...
0
votes
4answers
278 views

Is it smart to only invest in mid- and small-cap stock equity funds in my 401(k)?

Historically, mid-cap and small-cap company stocks have outperformed the market. Correct? Since I'm not going to touch the money in my 401(k) in over 40 years, wouldn't it make sense to invest ...