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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363 views

Employer 401K thru Fidelity - Investment options

I originally picked FA FREEDOM 2040 I (FIFFX) for investment. After talking with a co-worker I learned this is a poor choice and only has 3 stars. The 10 YR performance 6.37%. Anyway, I have altered ...
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1answer
227 views

Does it make sense to max out contributions earlier in the year?

Let's say a person is making regular monthly contributions to his/her Roth IRA, HSA, and 401K with employer match, up to annual limits. All contributions are put into index funds. Assuming this person ...
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2answers
255 views

Confusion about 401k and Roth 401k

I just started working for company, and this is my first time doing anything with a 401(k) plan. I found out this from the brochure, and I am a little confused: 1) you can save up to 80% of your ...
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1answer
369 views

Why would I not rollover my 401k into an IRA when permitted?

Currently in the US there are circumstances which allow you to rollover your existing 401K into an IRA, such as when you change employers. You may also keep it in the existing employer's plan or roll ...
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1answer
1k views

Tax consequences for commingled money rolled over from 401k to Traditional IRA to Roth IRA

A 401k account with pre-tax and post-tax funds at Institution A is rolled over as one lump sum into a new Traditional IRA at Institution B. The funds are commingled at this point. The funds will ...
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1answer
495 views

Rolling over a mixed 401k (Traditional and Roth) to a Roth IRA

I am rolling over my old 401k to a new Roth IRA. My 401k contained my pre-tax contributions, post-tax contributions, employer match, and employer profit sharing. I am guessing my employer match and ...
3
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2answers
446 views

Former company acquired. Do I have to move my 401K investments, or can I leave them?

A broker called me to discuss my 401K investments that were made while I worked at a company that was recently acquired by another. The discussion is about rolling those investments from where they ...
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2answers
262 views

I have a loan with a 6.5% interest rate. Should I divert money into my 401(k) instead of prepaying?

I have a loan with a fixed 6.5% interest rate, with an absurdly low minimum payment, so I have been paying extra each month (about enough so that the loan will have a 10-year repayment lifetime ...
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1answer
154 views

401k tax advantage vs lower fees in taxable account

Is there a formula or rule of thumb to help determine when it's better to put money in a 401k, 403b etc. or a regular taxable account assuming similar investments and returns (for example the same ...
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1answer
1k views

My employer is switching 401k plan providers. How might this work in practice?

For instance, my company will be switching my 401k from Fidelity to Wells Fargo. When plan providers are changed like this, am I likely able to keep what I currently have invested with the previous ...
3
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1answer
208 views

100% Contribution to 401K / Payroll Taxes

This is actually a followup question to a previous post: Tax implications for a 100% 401k contribution limit I mistakenly posted it there first as an answer. I'm new here ... Sorry! My question ...
7
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1answer
301 views

Tax-advantaged retirement savings options for someone with no 401(k) and high income

I have read that Traditional IRA and Roth IRA benefits appear to phase out beyond certain income limits. Assuming the following: I don't have access to any 401k plans through my employer My income ...
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1answer
374 views

What are the time limits on a 401k direct rollover?

Is there a time limit from the date you request a direct rollover from your 401k until your former employer completes the transaction? When does the 60 day rollover clock for the IRS begin?
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1answer
569 views

Inflation rates to expect over the next 30 years, 401k planning

I am a recent college grad and now a new hire looking to choose 401k options. I am wondering what the general strategy behind choosing a 401k investment rate is. I have been reading Recent graduate ...
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2answers
4k views

401k early withdrawal impact on unemployment benefits

I'm helping my SO plan for the worst since being laid off from work two weeks ago. The unemployment office's (Illinois) documentation has lots of convoluted language that among other things seems to ...
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2answers
113 views

Which earnings can be withdrawn when making an in-service withdrawal from a 401k?

When making an in-service withdrawal from a 401k with your current employer at under age 59.5, which earnings are you allowed to include in the withdrawal? Are you allowed to withdraw earnings on ...
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2answers
438 views

Evaluating a Job Offer: Defined Benefit Retirement vs 401K is the salary increase enough to make the move

I am currently enrolled in the NYS Employee Retirement System and would get up to 66% of my highest three years as a retirement pension. My current employer also contributes $2800 a year to my private ...
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1answer
103 views

Does a non-vested company contribution count towards the annual 401(k) limit?

My company makes a significant match to my 401(k) contributions. Unfortunately, that match is not vested till the middle of next year. Would this contribution count against the annual 2013 ...
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2answers
532 views

Are there any circumstances in which employer vested 401k contributions revert to the employee?

Many companies (including a former employer of mine) have 401(k) vesting schedules. The idea is that the employee keeps all of his/her contributions, and the employer piece has a percentage that you ...
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1answer
238 views

Will I face withdrawal penalties if my payroll processing company reverses an incorrect 401K contribution?

In my last paycheck, the payroll processing made an error and deducted an extra amount for the 401K from the paycheck. I caught it as soon as I checked the paycheck, but by the time someone got to the ...
4
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1answer
975 views

Why can employees under 21 enroll in 401(k) plans?

There are certain requirements on 401(k) plans, namely that employees must be eligible if: At least age 21 and Have at least 1 year of service It looks like those under age 21 can be ...
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1answer
1k views

Tax implications for a 100% 401k contribution limit

My company permits a contribution of a 100% of the paycheck towards the 401k. My question is, if I were to pick a 100% contribution amount, would I be liable for any taxes in the number of paychecks ...
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2answers
6k views

Over contribution to 401K between two employers, and maximizing employer match? [duplicate]

I have a situation like this: I worked for an employer this year from January to May and contributed $14,500 to my 401K. There was no matching from this employer. In mid-May time frame, I changed ...
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2k views

Temporarily reduce 401k contributions to help save for a downpayment?

Question I am saving up for a downpayment on a house to be used in 1 year's time from now. I have $20K and I want to have $60K, I know I won't have all of it but I want to try. Even if I don't get to ...
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3answers
368 views

How to calculate tax amounts withheld on mixed pre-tax and Roth 401(k) contributions, and match?

My employer matches dollar for dollar up to 6% in our 401k. For simplicity's sake, I'll speak in round fictional numbers: So suppose my traditional 401k contribution has been $600/month, and the ...
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2answers
833 views

What is the difference between “withdrawal” and “distribution” from a 401(k)?

My 401(k) plan lists several fees associated with my account. One of the fees is "Final Distribution", which is "$50.00 per distribution". Another is "Withdrawal", which is "$50.00 per withdrawal". ...
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2answers
125 views

Former company didn't yet process my 401k rollover. What is considered timely, and are they obliged to process it?

I left my former company 3 years ago and I left my 401k under the management of their 401k company. Now I want to roll it over. I sent a certified letter to them last week, and they got it. Then I ...
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1answer
128 views

Calculate the after tax cost of 403(b) contributions?

How can I calculate the value of the pre-tax benefit of contributing to my 403(b) plan through my employer? I am considering leaving this employer and want a value for how much this is worth in case ...
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3answers
788 views

Why would you not want to rollover a previous employer's 401(k) when changing jobs?

Are there any valid reasons to not rollover a former 401(k) when changing jobs? I have several little ones that I never quite got around to rolling together - with an upcoming job change, should they ...
7
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3answers
361 views

Save a dollar for house downpayment or put it in an individual 401(k)?

I am a self-employed independent contractor. I'm trying to decide what to do with any extra income I earn over the near future, given that I have the eventual goal of purchasing a house (within 2-3 ...
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2answers
85 views

Can I get a tax deduction for excess post-tax 401k contributions?

I recently left my employer, with whom I had a 401k account. For the year to date date, I had some post- and some pre-tax contributions to that account coming out of my pay. Since my new employer ...
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510 views

401(k) plan/investment fees: Are they the expense ratios, or something else as well?

I have a naive question. 401(k) fees are a popular topic lately. I am very interested in this as I max out my 401(k) contribution every year, well past the employer match. I am not sure if the 401(k) ...
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5answers
175 views

Non-tax advantaged investing over 401k situation

Is it worth bypassing a 401k in favor of a normal taxable investing account if you can contribute while in the 15% tax bracket and plan to retire in that bracket as well? After crunching some ...
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2answers
112 views

Is it possible to take advantage of exceptions to early withdrawal penalties on a 401(k)?

As I understand, in addition to having to pay income tax on gains, early withdrawals from a 401(k) also incur a penalty. But, I also heard that there are exceptions to the penalty, e.g. if paying ...
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1answer
796 views

Why doesn't a mutual fund in my 401(k) have a ticker symbol?

For my 401(k), I am trying to diversify while avoiding high expense ratios. Luckily among my investment choices are the Vanguard Target Retirement date funds which have fairly low expense ratios ...
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1answer
133 views

Will I face complications when rolling my Roth 401K into a Roth IRA when I become a grad student?

I'm planning to leave my current employer in four years and attend grad school for several years, and I'm unsure what I should do with the funds in my Roth 401K. Based on my current salary and my ...
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1answer
212 views

Rolling over my 401k: Who is “New Plan Trustees of [insert name] Plan”?

On the form to initiate the rollover, I am prompted for "Name", "Rollover Account Number", and "New Plan Trustees of [blank field] Plan" (followed by address information and yadda yadda). What am I ...
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2answers
106 views

401(k) Investment stategies

I am a new grad and I just started working for a company. They offered me a 401(k) with a very good matching. So I decided to invest some of my income as I am single. I was taken by surprise by how I ...
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1answer
1k views

Is it a good idea to increase W4 allowance claim in order to fully fund 401k?

My company matches my 401k contributions, up to a limit, 6%. I don't currently contribute the max, but I would like to start. I know when I increase the W4 allowances, my take-home pay goes up, and ...
4
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1answer
212 views

Can I rollover some of my Roth 401(k) into my Roth IRA even if I'm still employed?

My 401(k) plan, to which I make after-tax contributions, has excellent choices for index funds. I have a plan to get Admiral shares of Vanguard Total US Stock Market (ER of 0.06%), then use the bond ...
4
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1answer
287 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 ...
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1answer
90 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
148 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
404 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
130 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
165 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
3k 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
430 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 ...
5
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3answers
8k 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 ...
2
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1answer
70 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?