Questions tagged [401k]

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 a portion of it. The before-tax and/or after-tax contributions are subject to yearly limits set by the IRS. Related to the 403b and Thrift Savings Plan (TSP)

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0answers
102 views

PRUDENTIAL OWLIFES [closed]

Every year I have auto enrollment thru my company. Even though I opt out of 401k, Prudential still sends me a letter saying you are having 4% taken out. I call them and then I get another letter ...
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1answer
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Fidelity 401(k) investment

I have started investing in a 401(k) recently. I have few questions on how Fidelity 401k investments work. Choosing Investments: Let's say I didn't choose any investment options, does that mean my ...
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Should I increase my 401(k) contributions, or increase my mortgage payments

I have about $150k remaining to pay on my mortgage. There are 7 years left at a 3% interest rate, then after that the rate goes variable and increases to about 10%+. There's no penalty for paying the ...
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HCE Excess Refund on 401k Plan

This year, I received a letter from the company I worked for notifying me that they did not pass the 401k non discrimination test. As a highly-compensated employee, I received an excess refund check ...
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2answers
101 views

Tax on IRA and 401K to Roth conversion

I have a 403b account with my employer, a simple IRA account, a SEP IRA account, and a Roth IRA account. My wife has a simple IRA account, a Roth IRA account and a rollover IRA account from a previous ...
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Why is my 401k manager recommending me to save more?

I am currently contributing enough to hit the limit (~$18000) per year and get a match of 100% for 4% of it. My 401k provider (Fidelity) just sent me a quarterly progress email and suggests that I ...
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3answers
5k views

Should I prioritize my 401(k) over my student loans?

Lately things have been a bit tight. Between student loan payments, my HSA, my 401(k) and bills my account balance isn't going up or down, its stagnant. I am wondering if I should decrease my savings ...
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152 views

What recourse do I have if I was auto-enrolled into an employer's 401k plan despite opting out?

I started my new job on April 1, 2019 and at the first meeting with my manager I asked my new manager how I could dis-enroll or un-enroll from the 401K plan rather than be auto-enrolled @ 4%. He didn'...
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Employer overpaid me by mistake and wants the gross pay back, including 401K contribution and taxes

My last week's pay at my former employer was paid out twice. They want their money back, which I will gladly do, but here is the problem: Part of the gross pay went to my 401K (no company match ...
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2answers
171 views

401(k) seems to be in 'limbo'?

I have worked for a large multinational in the US for many years and whilst working with them, I have built up a sum of money in a 401(k) with Fidelity. However, about 2 years ago, my division within ...
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64 views

Should a Canadian working in the USA, invest in a 401k, Roth IRA, Traditional IRA, and/or RRSP?

I have a cousin who is a Canadian citizen working in the USA, asking me about the Canadian RRSP. However being an American I am more familiar with 401k, Roth IRA, and Traditional IRA. 1) From ...
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188 views

Borrowing against 401k for first home - things to watch

There is a general advice that borrowing against 401k is to be avoided. When I was looking at related questions here in SE I found a few discussions where some experts challenged the generality. For ...
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1answer
72 views

401k / Foreign Tax Credit

I am resident in the UK. My Wife is also resident in the UK, but is a US citizen. I'm 40 years old. We file a joint US tax return each year, and we file 1116 against all of my UK earnings. I have ...
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3answers
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Is it wise to pay off mortgage with 401k?

I've been considering paying off my mortgage with my 401k balance. Some particulars, I'm in WA state in the US, and I'll turn 60 in about a week. I have enough in my 401k with my current employer to ...
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I'm attempting to understand my 401k and how much I need to contribute to maximize the match

I pretty much put the entire question in the title. My company's 401k is the following: Your employer matching contribution is equal to 100% of your employee deferrals up to 1% of eligible ...
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Should one save up to purchase a house/condo or maximize their 401(k) first?

On the one hand, it seems like 401k with employee matching is one of the best investments you could possibly make. On the other hand, paying rent to a landlord is an ongoing loss compared to living in ...
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1answer
136 views

If a non-citizen non-US-resident withdraws from their 401k, are they taxed based on their US income or worldwide income?

This is a follow-up to my previous question. Let's say you spend 10 years in the US as a non-US citizen and end up saving up $150k in your 401k fund. After 10 years you finish your employment and ...
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4answers
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Why is there a cap on 401k contributions?

In theory, the government wants everyone to save up as much as possible for retirement so that citizens don't end up starving when they're no longer able to work. But in practice there is a limit of ...
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4answers
543 views

Those retiring early - what other steps can I take to ensure retirement at 50?

I want to retire early (am 40 - want to retire by 50). For those who have done it in and around that time (without inheriting a ton of money from someone) what steps or things can I do to help make ...
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3answers
397 views

Does it make sense to start saving into a 401k, if you might move out of the US before retirement?

Contributions to 401k funds are subject to a 10% penalty if taken out before the age of 59.5. Presuming my employer has a 401k matching program, does it make sense to contribute to a 401k if I might ...
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1answer
74 views

401k catch up contributions for HCEs - can my company forbid these?

I am currently restricted to a 9.5% contribution rate to my 401k due to imposed limits by my company for HCEs (apparently we failed a test last year). My CFO is telling me that it is illegal for them ...
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725 views

Why do 401k up to company match, then fill Roth IRA, then finish filling 401k?

Places like NerdWallet and the FI/RE community on Reddit suggest contributing to a 401k up to the company match (if one is offered), then maxing out a Roth IRA, and then going back and continuing to ...
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Quitting working - where to put 401k money? [duplicate]

My spouse is considering becoming a stay-at-home parent. They currently work and have a 401k. If they do leave their job, and want to rollover the 401k, what's the best investment vehicle to choose? ...
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3answers
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401(k) cost basis

My first 401(k) started in the early 1990s with some employer matching funds. Since then, there have rollovers, more 401(k)s, and lost records. Aside from a really rough estimate, what happens when ...
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Can I roll over 401k without leaving job, into personal IRA [duplicate]

I am younger than 40. Can I move my current employer-sponsored 401k funds to a personal IRA, without penality, and without leaving the company?
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1answer
91 views

401(k) vesting when switching companies owned by same entity

Initially I worked for a company A. This company is owned by company B. A few years in, I transferred to company C, which is also owned by company B. I started a 401(k) with company A, ...
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1answer
51 views

401k Rollover with TSP

I have been researching what do with a an old 401k and there is a lot of information on the pros and cons of rolling it over into a new 401k plan versus an IRA. I also have a TSP account with a small ...
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3answers
108 views

Are most 401k providers comparable? [duplicate]

I will be needing to decide if I should roll my 401k from a previous job into the 401k at my current job. Are some companies which the employer has a 401k through much less appealing than others, or ...
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2answers
126 views

Can you fix a rollover that went into a Roth IRA and put it into a regular IRA?

If someone, in the process of leaving a job last summer, rolled over their 401K into a Roth IRA and is now looking at a several thousand dollar tax bill, is there any way to salvage that by ...
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36 views

Traditional vs Roth 401K [duplicate]

I just found out that the company I work for offers 401K Roth. I am thinking of switching to 401K Roth soon. Right now I only have traditional retirement fund and no Roth. I think I have been ...
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correcting a W-2 showing 401k contribution as taxable

My employer made a profit-sharing contribution into my 401k, and they are including it in my taxable income. 1) Is this contribution taxable? I think it is not taxable. The IRS says: "Your employer'...
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1answer
92 views

Withdrawing money from my 401k account outside of US?

So my visa expires next year and my employer has a 3 year vesting period for their contributions. When the contributions vest and I am no longer in the country, how can I withdraw from my 401k? Can I ...
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2answers
501 views

I'm self employed. Can I contribute to my previous employers 401k?

I have a 401(k) from my previous job. I left and was unemployed, but now I'm self-employed. Is it possible to contribute to that former 401(k)? Or do I have to create a Solo/Individual 401(k)?
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5answers
219 views

401K Market Timing

I was recently reading a question regarding protecting your 401K from stock market drops and I got me a bit more curious about timing the market. We know that at some point there will be a large ...
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4answers
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Have I saved too much for retirement so far?

I currently have a roth ira as well as a 401k from fidelity. I have around 350k in my 401k and another 10k in my Roth IRA. I just turned 40 recently. Am I saving too much for retirement and should I ...
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7answers
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Should I stop contributing to retirement accounts, and instead focus on expanding our real estate investments?

My wife and I are in our later 30s and make about $100,000 per year from salary. We also net about $40,000 from rental properties that we have purchased over the past several years. Our essential ...
2
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2answers
96 views

401(k) distribution tax calculation

Wanting to receive $25k distribution from my fully vested 401k w/former employer. Figuring required 20% withdrawal penalty to be $5k (25,000 x20%), so my account balance would be reduced by a total ...
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4answers
294 views

Former employer deposited money in my 401K by accident

Former employer put about $3K in my 401K after I had left the company for 1 year. A year later they discovered it and are asking for the money back. Do I legally owe this to them?
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1answer
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Are 401k withdrawals included in income for Medicare premiums?

How do I report 401k withdrawals to Medicare if the IRS does not report it?
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276 views

Where do I report 1042-S income on 1040 form?

US citizen living in Puerto Rico. For 2018 will receive a 1042-S instead of a 1099 R for 401 K withdrawals because tax rule changes. My address is Puerto Rico outside 50 states and no W-9 on file. (...
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1answer
72 views

Why doesn't Vanguard allow to pay fees pertaining to 401(k) accounts using resources located outside the 401(k) accounts?

Why doesn't Vanguard allow to pay fees pertaining to 401(k) accounts using resources located outside the 401(k) accounts? Is that due to some law, some other constraint, or is that just some arbitrary ...
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2answers
259 views

Why would an employer prevent their employees from investing in the employer's stock through the employer-sponsored 401(k) account?

Why would an employer prevent their employees from investing in the employer's stock through the employer-sponsored 401(k) account? I saw that restriction when reading the "Vanguard Brokerage Option (...
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1answer
115 views

How does the 401k work if i move from US to canada working for same company?

I have been working in USA from past 15 years and now planning to move to Canada for the same company. So is there a 401k equivalent in Canada where i can continue contributing ? Or i can still ...
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1answer
260 views

Why are the limits on 401k much higher than IRA?

I'm currently working in a contract position with no option to contribute to a 401k. For 2019, the contribution limit on a 401k is 19,000 vs 6000 on an IRA. Why is there such a big difference? I could ...
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1answer
354 views

My 401k failed the nondiscrimination test — how to avoid taxable distribution?

As in this question, and this question, my ex-company's 401(k) failed the nondiscrimination test. I've recently received a letter from the company's HR to the effect that I will receive a corrective ...
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1answer
179 views

401(k) losing money, considering withdrawal to pay off mortgage

I left my job 13 years ago with $80,000 in a 401(k) plan and $500 a month pension. Two years ago the company told me that I had to get money for pension. I had already lost $45,000 of my 401(k) due ...
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2answers
304 views

Should I pay off my 401(k) loan ASAP?

I recently saw a question on the forum about "Should I pay off my Home LOAN from my 401(k) or continue to pay Interest to myself". Most responses seemed to think that paying it off ASAP was the best ...
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3answers
1k views

Vanguard Target Year retirement funds track record

Some personal finance "gurus" recommend funds with a track record of at least 10 years. Both my current and previous employer default to Vanguard target year retirement funds. These funds from 2015 ...
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1answer
179 views

401k Statistics

This article claims: In fact, the average 401(k) balance at Fidelity — which holds 16.2 million 401(k) accounts and is consistently ranked as the largest defined contribution record-keeper — ...
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2answers
542 views

Can I use my declining to put money into a 401k (for which they would match up to 5% if I did) to negotiate a higher salary?

I do not want to contribute to my 401k, however, my contracting company does offer a match of 5%. Can I use the declining of this 401k to negotiate a 5% higher (or a bit lower) salary? Is the company ...