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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2k views

What do I tell the payroll company so that I can put 100% of my salary into a pretax 401k?

My spouse works part-time and qualifies for a 401k. She will make less than the $18,000 plus $6,000 catch up limit. So we want to put 100% of her earnings into the 401k. We understand OASDI and ...
3
votes
1answer
114 views

What are the tax benefits when maxing out your 401k?

I would like to check if my understanding is correct. Let's say a person makes 100k and has an effective federal tax rate of 25% then: without contribution to 401k she would pay 25k in taxes. with ...
1
vote
1answer
443 views

What is the ticker symbol for “Vanguard Target Retirement 2045 Trust Plus”?

Hi I'm offered this plan through work but i can't find a ticker for it so that i can compare it to something else using tools like google finance. All I find is "Vanguard Target Retirement 2045 ...
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2answers
176 views

How to Start Investing

I am 26 years old and just won roughly $70,000 after taxes playing craps at a local casino. I have no idea what to do with my money. I have a student loan of 17k that I plan to pay off because the ...
2
votes
1answer
39 views

Old 401(k) Provider Change

I'll preface this with I shouldn't have procrastinated... My previous employer (I left several years ago) is changing their 401(k) provider from Company A to Company B and I never did anything with ...
37
votes
4answers
5k views

Justification for aggressive investment strategy when young?

I've frequently heard that the conventional wisdom is to be invested in an 'aggressive' investment strategy when young, and as you approach retirement age, migrate to a more conservative strategy. ...
4
votes
2answers
295 views

Undo 401k to IRA rollover?

After I left my employer I rolled my 401k over to a traditional and Roth IRA (Roth for after tax contributions, traditional for everything else), but am having second thoughts. Is there any way to "...
0
votes
1answer
62 views

Individual 401(k) and Contribution Limits [duplicate]

For an individual who was self-employed part of this year and contributed to an Solo 401(k). Now the individual is employed and covered under a standard 401(k). Does the solo 401(k) contribution ...
0
votes
1answer
211 views

Best way to maximize current income from stock market as a low income person

Due to some health problems it is quite difficult for me to work full time. I get my income from odd jobs and on-line surveys. I was wondering what the best way to maximize some of that income. ...
2
votes
1answer
1k views

30-year-old saved $30,000: what should I do with it?

I'm a 30-year-old living in NYC with a decent job, not married / no kids. I've now saved $30K and it's just sitting in a savings account, earning next to nothing. I have never invested in the stock ...
3
votes
1answer
113 views

Administrator vs Broker vs Custodian for a Solo 401(k)?

I'm planning to open a Solo 401(k) with Schwab. There are some provisions that are decided by the Plan Administrator, which I assumed would be me (my business, technically). However, doing research, I'...
5
votes
4answers
221 views

Should I scale down my 401k?

Today I met with my 401k provider at work. They tend to push certain plans and a schedule that is as follows: Aggressive Fund (100% stocks, 0% bonds) Moderate Fund (50% stocks, 50% bonds) ...
4
votes
1answer
588 views

Is this 401k statement odd or is it normal?

I'm trying to help someone compare benefits for two different companies. However, we have both interpreted the 401k match statement in the benefits summary differently for one of the companies. ...
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3answers
4k views

Is there any drawback in putting all my 401K into a money market fund?

As you may know, the stock market drops like crazy, I did sense that a couple weeks ago and transferred some of my fund to money market - well, at least to keep it as dollar value... However, I am ...
2
votes
1answer
112 views

Is it possible to add money to an existing rolled over IRA when I have a 401(k) from work?

I contribute about 12% of my income to 401(k) which comes to about 15000 a year or so. My employer doesn't match anything due to nature of the contract. I have been investing in 401(k) since 2012. I'...
3
votes
3answers
284 views

What are my options if my previous employer does not transfer my 401(k)?

I recently (1yr ago) changed jobs and my previous employer has not transferred my 401(k) contributions. I have sent them several emails regarding this. Their typical response is that they are working ...
10
votes
1answer
2k views

401(k) forfeited and check issued. What can I do to avoid penalty?

Recently, I checked the website of the last 401(k) plan that I contributed. I found that the account was "forfeited", which I assume it means that it was closed due to not being an employee of the ...
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votes
2answers
2k views

How does the “Rule of 55” work for avoiding early 401k withdrawal penalties?

How does the "Rule of 55" work for avoiding early withdrawal penalties from a 401k? What are the conditions around using the "Rule of 55"? Is it practical to use this rule?
3
votes
2answers
186 views

401k hardship withdrawal

I have a small 401k account from an employer I left a year ago. I would like to close the account and cash it out to simplify my financial profile as well as use the money for some home improvements. ...
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1answer
102 views

How much will I get from an early withdrawal from a 401k and Roth 401k with employee contributions after taxes and penalties?

I am planning to buy a house and want to maximize my cash available. In my 401k account, I have a distribution like this: (x+x1 gains)+(y+y1 gains)+(z+z1 gains) where x: 401k, y: roth 401k, z: ...
3
votes
2answers
104 views

Are tax-free investments still tax free when taking distributions?

If you read the 'Power of Zero', he talks about putting tax free investments into your traditional IRA. That way, you won't incur any taxes when you take distributions. Maybe I misunderstood what he ...
4
votes
1answer
102 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
votes
1answer
132 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
votes
3answers
6k views

Want to retire at 55, but 401(k) 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
votes
1answer
196 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 ...
4
votes
1answer
146 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
votes
1answer
63 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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vote
1answer
87 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
55 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 ...
15
votes
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
173 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
votes
1answer
141 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
459 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
422 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
943 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
393 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
1k 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
324 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
774 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
765 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
73 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
224 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
340 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
115 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 ...
5
votes
1answer
317 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 ...
1
vote
1answer
107 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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vote
1answer
185 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
270 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 ...
3
votes
2answers
2k 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
182 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 ...