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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256 views

Why might it be a bad idea to invest 100% of your 401(k) into a stock index fund?

Background: I'm a young 20-something, I won't be retiring for 40+ years, and the expense ratios for the funds offered in my company's 401(k) plan mostly suck. I understand that one of the reasons an ...
3
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1answer
87 views

Can I still deduct contributions to my Traditional IRA?

I worked as a consultant on W2 from January 2012 until October 2012. My company did not offer any 401k. In November 2012, I got a full time job and the new company offered a 401K and enrolled me in ...
3
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1answer
138 views

Grad student - Pull money from 401k, or get student loan?

I went back to school after a few years in industry. The PhD has a stipend, but it doesn't quite go far enough. I'm dipping into savings each month. I'm looking for a little extra cushion. I have a ...
2
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1answer
364 views

401k Option - Lifecycle or S&P Index - what are pros and cons?

When I set up a 401k a few years ago, my options were pretty limited, so I simply went with a lifecycle target retirement date fund (exp ratio of 0.12%). However, I now see I can choose a passively ...
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2answers
119 views

401k Catch up Provision - Limits on timing?

My girlfriend, a Highly Compensated Employee (HCE rules in effect), has her 401k contributions in check by her plan and HR. However, she is also 50+, thus eligible for the Catch Up provision for $5500 ...
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1answer
161 views

Is it a bad idea to have both pre-tax and Roth money in a 401k?

From reading this article, it seems extremely hard to "separate" the pre-tax and the Roth parts of 401(k)s -- you must always move them together. But moving them together is often not efficient; e.g. ...
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1answer
2k views

Transferring money from 403B to 401K?

I worked for an employer with a 403b and contributed, but my new employer only does 401k. Can I put the money from the 403b into the 401k? How?
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3answers
369 views

How should I calculate the opportunity cost of using a 401(k) loan?

I've seen a number of financial articles that discuss the "opportunity cost" of using a 401(k) loan; however, I don't seem to recall ever seeing a good formula or calculation that can be done to ...
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6k views

How to deal with my job change & 401k loan that I can't fully pay back?

It's been 60 days since I changed my job and I have an outstanding 401(k) loan of $30K(+30k non loan amount). I have only $20K to pay and my 401k plan won't accept the partial amount. I still didn't ...
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1answer
68 views

When can I start making contributions to a 401k

I'm moving to the US this year. When can I start making contributions to a 401(k)? Can I start as soon as I get my first pay check or do I need to wait until I file my taxes?
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521 views

Would any experienced individual balk at the idea of ignoring a 401k plan?

I would rather invest my money on my own how I see fit and plan my retirement custom-style. ASSUMING a person knows how to use and invest their money wisely, would it still be a bad idea to entirely ...
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2answers
753 views

Pre-tax 401k and post-tax Roth 401k contributions commingled into same account? Tax treatment of withdrawals?

My employer recently began offering Roth 401k contributions. I decided to switch my contributions to the Roth 401k, figuring that it is impossible to guess what my tax situation will be in 25 years ...
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2answers
8k views

What does Personal/Internal Rate of Return mean for a 401k?

My 401k statements show a "Personal Rate of Return" (also called Internal Rate of Return), and I am curious what this actually means. Does this indicate how my funds are performing in the market? Or ...
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5answers
272 views

Is there any reason at all to have a traditional IRA if you already have a 401k and earn more than a certain amount?

I was not aware that if you have a work-sponsored retirement plan, then traditional IRA contributions are pre-tax only if your salary is low enough (according to this). Given that, is there any ...
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4answers
209 views

Multiple accounts stagnant after quitting job.

So I made the move to quit my job of over 10 years a few months back and have never been happier. My one problem is that I now have some accounts that I feel that I could be doing more with. I had ...
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2answers
1k views

Optimal way for withdrawing vested company match from my 401k?

It's possible that I'll be laid off in a few months. Currently I have x + y in my 401k. x = my personal contribution y = my company match --> which is vested Soon I'll make a fairly big ...
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6answers
10k views

Can my employer limit my maximum 401k contribution amount (below the IRS limit)?

I contribute about 13% of my income to my company's 401k, which, at my salary, is well below the IRS limit of $17K/year (in 2012). However, with my raise this year, my benefits department told me that ...
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3answers
1k views

Employer overpaid 401k - what's my liability?

My employer overpaid into my 401k account (ie: deposited an extra paycheck's worth of money into the account). I notified the HR/payroll person of the mistake, and they said they'd "look into it", ...
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1answer
5k views

My bonus is taxed at a higher rate than my regular paychecks, so should I contribute 100% of my bonus to 401k?

Is there a tax advantage to putting 100% of my bonus into 401k? From looking at my pay stubs, my bonus gets taxed at a higher rate than my regular paychecks. And since traditional 401k contributions ...
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3answers
4k views

Could a 401k or IRA contribution switch my current taxable income to a lower tax bracket? is this the same for traditional and Roth 401k?

In the case that my annual income is right in the limit between one tax bracket and the next tax bracket. Can contributing to a 401k or IRA reduce your present income declaration in such a way that ...
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6answers
2k views

Why should one only contribute up to the employer's match in a 401(k)?

On a recent edition of Jim Cramer's Mad Money, he urgently (does he do things otherwise?) recommended that you ONLY contribute up to the employer's match in your 401(k) and put the rest of what you ...
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2answers
197 views

Should I open an individual 401k account?

I am looking for some advice on what to do with the Money from a previous employer 401k. I currently have the checks that were issued to the trust of my new employer's 401k service. I have not sent ...
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2answers
716 views

Non-qualified Savings Plan vs. 401(k) for Highly Compensated Employee

Late last year, I started a higher-paying job than I've ever had. Today I got a letter from my employer's benefits department and Fidelity telling me that I'm expected to pass $115,000 in ...
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1answer
140 views

Add $5000 to existing retirement account

I have an employer sponsored account(401k by Fidelity) which was opened in my first company. Now I am in another company. To reduce my tax liability, can I add $5000 to the account so the amount is ...
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2answers
83 views

Tax treatment for non-matched 401k vs. a Roth?

I've heard that you should invest for retirement in the following order: 401k with employee match Roth IRA, until you hit the max Rest of your 401k I was curious however. The money for a 401k ...
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1answer
135 views

Are 401(k) fees based on contribution amounts or total account balance? What's reasonable?

I have a good employer match of a straight 25%. Deposits are made weekly. My balance is roughly $150,000. I have contributed $17,800 YTD, and paid $817 in fees, or 4.6% of my contributions. Are ...
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1answer
190 views

Former 401(k) plan closed and check mailed to me. Can I roll over this money and avoid paying tax?

My former employer's 401(k) plan has been terminated and I was mailed a distribution check with 20% tax withheld. However, I wanted to move my money into my current employer's 401(k) and not pay tax. ...
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5answers
230 views

Advice on low-risk long-term strategy for extra cash?

Basics no debt; no dependents; early thirties 401K is maxed (5% company match) ESPP is maxed out 10% Roth IRA is maxed out salary is about 115K 100K cash in a checking account Question I am ...
3
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1answer
494 views

401k Contributions + Employer Match be greater than Maximum Contribution?

This year, 401k contributions are capped at $17,000 per person. So let's say somebody contributes this amount and is matched maybe 8% by their employer each contribution period. Can the total amount ...
5
votes
1answer
631 views

Moving current employer 401k balance into self-directed solo 401k?

Let's say my employer offers a 401k. In general, this means I can only pick from a basket of funds to invest in. I prefer self directing my investments, and my broker offers a no-fee solo 401k. I ...
3
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1answer
358 views

Does it make sense to get a 401k loan for land purchase?

Does it make sense to use a 401k loan as a downpayment on land that you intend to build a house on? I am currently in one house, however, I do not have much cash to make a downpayment on land that ...
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1answer
605 views

Are there any rules about when a former employer must release the funds for rollover from a 401K?

My company was recently acquired/merged with another company, and I won't go into the gritty details about the acquisition, but suffice it to say that all existing employees were effectively let go ...
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2answers
1k views

How do 401k handle rate of return

This question has quite a few parts but answers to any part is certainly welcome : ) I'm having trouble finding an answer to what I think should be a simple question. When I see my 401k is up 10% ...
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1answer
3k views

Do 401K contributions reduce MAGI as it pertains to Roth IRA income limits?

My wife and I are looking to make around 200K this year, putting us past the Roth IRA income limit. It may be possible for us to get under that limit if we both ratchet up our 401K contributions from ...
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0answers
37 views

Should I invest in 401(k) both pre and after tax? [duplicate]

Possible Duplicate: Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)? My employer offers both pre and after tax 401(k). Since I am in my mid 20s and I don't know what ...
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votes
4answers
124 views

What is a 401(k) Loan Provision?

I'm considering a few job offers for post-college, and I'm wondering how this (Roth) 401(k) plan stacks up against the average offering: After one year of service, [Company] will: ...
2
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1answer
102 views

Does a rollover IRA impact your basis for converting a traditional to Roth?

In the United States, does having a rollover IRA impact your basis for converting a traditional to Roth? I ask because I have a 401(k) with a former employer than I could rollover to an IRA and get ...
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2answers
366 views

I have access to a 401K at work but the fees are high. Should I contribute, or do otherwise?

I have a retirement plan 401K from work. The employer does NOT contribute anything. I just enrolled into account and got to know that there are fees associated with the account. The fees is ...
5
votes
2answers
160 views

Which should I prefer, traditional or Roth 401k? [duplicate]

Possible Duplicate: Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)? I'm just a few years out of college, and am starting to put aside some retirement savings. My ...
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vote
1answer
178 views

IRS letter about 401(k) rollover not shown on return

I got an IRS letter that states my return does not match the records they have from others. In particular, it shows I reported $0 but they were reported a non-zero amount for taxable retirement ...
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votes
1answer
101 views

What are the requirements for setting up a solo 401k?

I'm leaving a job that has a 401k for a startup that has no 401k. I can switch to using a traditional IRA but the max contribution per year is 5K, so that would cut my tax-deffered savings per year ...
9
votes
3answers
839 views

What happens to 401(k) money that isn't used by the time the account holder dies?

What happens to un-withdrawn 401(k) funds upon the death of the account holder? Can they be transferred to an heir? What are the tax implications (if any) of this?
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votes
2answers
910 views

Tax implications of 401k regular rebalancing vs a retirement target fund

This question is in the context of securities held within a 401k. As I understand it, one of the advantages of a retirement target date fund (like Fidelity's FFFHX, which I am in 100%) is that the ...
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1answer
3k views

401k withdrawal abroad and state taxation?

From what I know about 401k's, when it's time to retire, we take our 401k money and pay federal and state tax. Some states don't have taxes on 401k's — Florida is a good example. So many people move ...
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4answers
205 views

Is my first 401(k) fund allocation reasonable, and with respect to fees?

I just started my first job after school and am now being enrolled in my company's 401k plan, which is handled by Vanguard. By default, I was put into the Target Retirement 2050 Trust II fund, which ...
2
votes
1answer
145 views

What to do about the 401(k) account when leaving the employer? [duplicate]

Possible Duplicate: Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA? I have a 401(k) account with my last company. I contributed 6% and company matched up to ...
4
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3answers
209 views

Should I participate in a 401k if there is no company match?

The 401K program offered by my employer doesn't include a company match. Should I participate in the plan? What are the criteria one should use for estimating the worth of the situation?
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1k views

Safer investing (401k/savings) assuming there will be another banking crisis?

Assuming one or more of the big investment banks incurs unsustainable investment losses leading to another banking crisis, what is the safest place to invest my 401k?
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3answers
268 views

How to get started with savings, paying off debt, and retirement?

I am getting married soon and I am in grad school (I get paid a stipend and have a tuition scholarship). I have no retirement plans available to me. My fiancee will be starting her job soon and will ...
2
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1answer
178 views

Are IRAs and 401(k)s protected against lawsuits and garnishments?

There's as similar question about bankruptcy, but these protections apply to lawsuits or garnishments?