A specific retirement plan in US. Related US specific retirement plan tags "Roth IRA" and "401K"

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20
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3answers
4k views

Laid off at age 54 1/2, am I eligible to withdraw my 401k money without penalty?

I will be turing 55 this year in November. I got laid off 2 weeks ago (April 4, 2016). I worked in New York City and live in NJ. Can I withdraw my 401k without penalty?
7
votes
1answer
341 views

Can I contribute to a 401k, Roth 401k and Roth IRA at the same time?

My company provides me access to 401k, and I am contributing the maximum allowed in that 401k. In addition I also have Roth IRA (I qualify for it because of income less than $193000). Recently, my ...
4
votes
2answers
251 views

How late is Roth (rather than pretax) still likely to help?

Given the choice, should one switch from Roth to traditional IRA/401k contributions as one approaches retirement, and if so is there any good way to decide when? If it affects the decision, I am ...
2
votes
1answer
55 views

Does a Roth 401(k) rolled into a Roth IRA count toward the annual contribution limit?

I am trying to max out my Roth IRA for the 2015 tax year, and am wondering if Roth 401(k) rollovers count as a contribution. Roth 401(k)'s are not offered by many employers, so I couldn't find much ...
0
votes
0answers
66 views

After-tax 401(k) conversion

I have some questions regarding converting my after-tax 401(k) to either my in-plan Roth 401(k) or an external Roth IRA: When I convert, can I transfer stocks/funds I own in my after-tax 401(k) ...
5
votes
1answer
119 views

Roth and Traditional 401k - Is it a valid strategy to withdraw from traditional for lower brackets, and then switch?

Given I am investing heavily in Roth 401k and also some in Traditional 401k... I was wondering if it is a valid retirement strategy [after retiring] to withdraw the first couple lower tax brackets ...
0
votes
3answers
171 views

disadvantages of saving for home down payment through 401k or 457k

I've been toying around with the idea of setting aside money via my 401k specifically for use as a down payment on a house. To be clear, I do currently put 9% into my Roth 401k option and my employer ...
0
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2answers
68 views

How long can I convert 401(k) to Roth 401(k)?

I understand that (simplified) 401(k) is pre-tax money, and Roth 401(k) is post-tax money. That means moving money from the former to the latter, I have to pay taxes on it, and those taxes might need ...
1
vote
2answers
122 views

Is it possible to have multiple retirement accounts?

Can an individual have separate traditional IRA, roth IRA, 401k, roth 401k etc...? Assuming they somehow have the income to put into them, and yet are still eligible to have such accounts? If not, ...
4
votes
1answer
130 views

5 year rule on Roth 401k to Roth IRA rollover containing converted amounts

Suppose In tax year t, I contribute 10000 to a Roth 401k and 10000 to an after tax 401k. By tax year t+1, both amounts have grown by 10000 to 20000. In tax year t+1, I convert the full 20000 from ...
2
votes
1answer
293 views

Will a Roth 401k rolling over to a Roth IRA allow the money to become penalty-free at withdrawl?

I'm aware that a Roth 401k and a Roth IRA are funded with pre-tax amounts, and no taxes are incurred upon withdrawal. However, I have stumbled upon a few articles that state a 10% penalty early ...
1
vote
2answers
79 views

Split Roth 401k Rollover between Traditional IRA and Roth IRA

Does the guidance in IRS Notice #2014-54 apply to Roth 401k rollovers? Specifically, is it possible to do a out-of-service rollover on a Roth 401k such that: The earnings are put in the Traditional ...
1
vote
1answer
99 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: ...
5
votes
2answers
227 views

Future viability of Roths

In the spirit of this question, now 4 years later, I'd like to know if there are any concerns with the future "security" of Roth accounts. I'm currently maxing out mine and my spouse's Roth and ...
5
votes
2answers
350 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
853 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
2answers
159 views

Roth 401(k) pre-mature withdrawal: Is company match subject to tax/penalty?

Question on 10% penalty and tax on earnings for a Roth plan: For example: My contribution is $10k, with company match of $10k as well. Total earnings of ~$2k. Will I have to pay 10% penalty and tax ...
1
vote
1answer
105 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 ...
4
votes
3answers
266 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 ...
5
votes
2answers
199 views

Withdrawing from regular vs Roth 401K

I work at a company that allows me to put my 401K into either a regular or Roth 401K. My understanding is that: For the regular 401K, I pay taxes when I withdraw money from the 401k. For the Roth, I ...
5
votes
1answer
181 views

Where should I take some money from after retirement? (IRA, 401K, Roth, Taxable)

I have three 401ks, each doing well. One has some pre-1987 money, another has some Roth money, and some has post tax, non Roth money. I also have several smaller IRAs and Roth IRAs, some of them ...
3
votes
1answer
86 views

Sole employee S-Corp 401k - Can Company portion also be made to be Roth?

I have an S-corp for which I recently established an Individual 401K plan with one of the top 4 plan administrators. I understand that the employee contribution can be either traditional or Roth. ...
1
vote
3answers
138 views

Are contributions to ROTH IRA/401k effectivly bigger then to IRA

I've just moved to US and I started considering savings/retirement options (I'm mid-20 but I don't think it unwise to start early). I'm trying to max the contributions. I started to think if the ROTH ...
0
votes
1answer
118 views

Are there limits on frequency of withdrawal from Roth 401K?

I understand that withdrawals from Roth 401K's are allowed up to your contribution without penalty since these are after tax dollars. Is there a limit on the frequency of such withdrawals? Presume ...
3
votes
2answers
266 views

Can I max out all retirement account types?

Hypothetically speaking, could I contribute the maximum to a 401k, a Roth 401k, an IRA, and a Roth IRA? That would be a total of 46k per year (17.5k + 17.5k + 5.5k + 5.5k).
2
votes
1answer
259 views

If you rollover a Roth 401k to Roth IRA and immediately withdraw it, is there any tax or penalty?

According to the accepted answer to this question, when you rollover a Roth 401k which contains contributions and earnings, to a Roth IRA, you don't pay any taxes. Suppose you then withdraw from the ...
2
votes
1answer
426 views

How much more can I contribute to my 401(k) this year after I made some Roth IRA, Roth 401k, and 401k contributions?

I've just started a new job, and would like to max out my pre-tax 401(k) contributions before year end. I have contributed to various other investment accounts earlier this year and am struggling to ...
5
votes
1answer
204 views

Roth 401k rollover into Roth IRA: How are earnings handled?

I have a Roth 401k from a prior employer and I want to roll it into a Roth IRA. For simplicity, let's assume there are no pre-tax employer match funds in the 401k, only my after tax contributions and ...
0
votes
2answers
51 views

Can I use a loan from a Roth 401K as a return option?

For the sake of this question presume that my Roth 401K is invested in low-risk bonds paying prime rate. Can I take a loan, put the money into a similarly low-risk investment paying the prime rate, ...
1
vote
0answers
299 views

401k strategy for NRI planning to return to india

Scenario is for L/H visa holder who is earning salary in USD. The person also has employee sponsored 401k plan. The visa expires in 5 years and person would like to return at that time to India ...
4
votes
2answers
740 views

Any downsides to having both 401k AND Roth 401k

So currently I have a 401k, I went ahead and added a Roth 401k while I'm eligible, beyond the fact I'll have to pay tax on the contributions now without the tax on withdrawal later in life you'd see ...
4
votes
3answers
354 views

Savings account vs Roth 401k

Is there any reason to have a savings account if you have a Roth 401(k), which allows early withdrawal of principal? If pooled together, couldn't you get the liquidity of a savings account and, if ...
5
votes
3answers
636 views

If my 401k plan allows for pretax and Roth contributions, why would I want to open an IRA?

My company is switching to a 401k plan provider that allows for both Roth and pretax contributions. If I can make either type of contribution to this plan, why would I want an IRA? The previous 401k ...
3
votes
1answer
104 views

401k rollovers (pre & post tax contributions)

I have a 401k from a former employer. This contains both pre & post tax contributions. Do I need to open both a Traditional IRA and a Roth IRA so the distributions are rolled over correctly? It ...
2
votes
1answer
173 views

What is the penalty for contributing to a Roth 401k when my AGI is over the limit?

Specifically, my wife has a Roth 401k and I have a traditional 401k; we married in the middle of last year, and our combined AGI for last year is well above the limit for contributions to a Roth ...
2
votes
1answer
83 views

Does non-taxable income apply before or after (not at all) taxable income for purposes of tax brackets?

The context of this question is looking at retirement and 401k/Roth. I am currently contributing to both. I was wondering when I start withdrawals of the traditional if these withdrawals are taxed at ...
0
votes
1answer
114 views

Employer changed my Roth 401k to a traditional 401k. Can they do that?

My HR lady changed my Roth 401K to the traditional 401K without asking me and told me to correct it on my login with ADP. I don't want the traditional 401K. Can they force me to do the ...
3
votes
1answer
119 views

Roth IRA contributions and Roth 401(k) rollover

My (potentially flawed) understanding of Roth IRAs is that you can take out contributions at any time without penalty. So if you put $5,000 in and it doubles in a year to $10,000, then you sell some ...
5
votes
2answers
323 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 ...
2
votes
1answer
943 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 ...
2
votes
2answers
1k views

How are employer matched contributions handled in rollover from Roth 401k to Roth IRA?

I recently asked this question: Can I do a Roth 401k rollover to Roth IRA and withdraw contributions I've made this year? In there, one of the answers pointed out that employer 401k contributions ...
4
votes
1answer
5k views

Can I do a Roth 401k rollover to Roth IRA and withdraw contributions I've made this year?

I am leaving my current job. Can I do a rollover from my existing Roth 401k, to a Roth IRA, and then withdraw my contributions and vested employer contributions from this year and stick them into a ...
3
votes
3answers
631 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 ...
2
votes
1answer
514 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 ...
10
votes
1answer
4k views

Should I use a Roth 401K rather than 529 to save for children's college?

I have set up a 529 for my child's college fund but the more I look at it the less useful it seems compared to alternatives. The 529 is quite restricted -- What if she doesn't go to college? What if ...
4
votes
1answer
198 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. ...
4
votes
4answers
1k 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 ...
10
votes
3answers
12k 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 ...
3
votes
4answers
178 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: ...
5
votes
2answers
255 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 ...