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)

Filter by
Sorted by
Tagged with
3
votes
1answer
183 views

Should I request that my employer reduce my salary to fully max out my 401k?

Conventional personal finance wisdom often instructs one to make full use of tax-advantaged accounts before placing additional savings into other investments. I don't think this is bad advice in ...
4
votes
2answers
207 views

Intentionally paying tax on 401K excess contributions to take advantage of employer matching?

This is a little bit of a twist on another question that has been asked in this community. My wife started a new job in February, after which she had contributed about $2,000 through her previous ...
3
votes
2answers
150 views

Should I prioritize repaying my 401(k) loan over maxing out my 401k contributions?

I took out a $22,000 loan (over 7 years) against my 401(k) for the purchase of a new home. I currently owe $15,000 on that loan. While I make 401(k) contributions each paycheck, I am not making the ...
1
vote
0answers
23 views

Solo 401K with a Solo Roth 401K and MEGA Backdoor Roth

In 2020, I have worked as both a sole proprietor / individual contractor with no employees and as a W2 part-time employee. I am 41 yrs old (under 50) and will have multiple streams of income in 2020: ...
3
votes
3answers
316 views

Should I contribute to a 401k pre-tax or Roth after tax if I plan to work for a year and then go back to grad school?

I am completely new to investment for retirement, and just got my first job. My job offers a 401k pre-tax and a Roth after-tax. However I plan return to grad school after one year of working. Is it ...
11
votes
1answer
2k views

Moving a 401k balance to multiple FDIC-insured IRAs to protect my funds against being wiped out by a market crash?

My wife and I are living on our Social Security benefits. I've been very pleased with the growth of my Fidelity 401k in my former employer's retirement plan. As far as I know, I can leave my balance ...
1
vote
2answers
36 views

Principal 401k expense fees

I max out my IRA and HSA, so my next haven is my 401k which I also max out. However, the fees for the funds it offer seems absolutely crazy. In my IRA and HSA I don't have an ETF with an expense ratio ...
0
votes
0answers
20 views

Is there any downside to transferring 401k to a rollover IRA? [duplicate]

I have a 401k retirement savings account from a previous employer. I am considering transferring it to a rollover IRA, where it seems I would have access to a larger range of investment options. ...
1
vote
2answers
54 views

What is in a T. Rowe Price target date fund?

A target date fund is a great way to save for 401k retirement but what is the actual composition? I understand that they're split between bonds and stocks but how does somebody actually introspect the ...
3
votes
4answers
1k views

401(k) opt out Company matched funds allocated

Based on the current volatile climate unfavorably forecasting the future of brick and mortar retail stores facing continued lost revenue, the unprecedented growth of eCommerce, and to further damper ...
2
votes
1answer
72 views

Investment choices for 403(b) and 401(k): How to predict future performance?

My wife and I are in our 30s and live in the US. We have several retirement accounts, which include an old 401(k), her current 401(k), and my current 403(b). These 3 all allow us to choose our ...
0
votes
4answers
301 views

Is 401k matching unfair to lower-paid employees? [closed]

Let's say an employer matches "the first 4% of salary" an employee puts towards their 401k. Does that mean lower paid employees get less of a perk?
2
votes
2answers
78 views

401k direct rollover to existing IRA? [duplicate]

The instructions I'm looking at (on how to roll over a 401(k) to an IRA) say that I should open a new traditional IRA account. I have one that I've used for a rollover in the past (it was created to ...
9
votes
5answers
2k views

How does one get the 401(k) max contribution of 57K?

My understanding is that the max individual contribution for 2020 is $19,500. If employer match is 100%, that gets us to a total of $39,000. How does one max out the combined employer/employee ...
4
votes
1answer
103 views

CARES Act 401k withdrawal requirements - Is this a hardship?

From my understanding, financial hardships related to COVID-19 can qualify an individual to withdraw money from their 401k, with literally no penalty so long as it is repayed to a similar retirement ...
17
votes
5answers
8k views

My company is suspending its 401K match; what is the best thing to do with my money?

I am a 25 y/o US citizen working in the US for a US company. Given these days' hard times, my company has elected to suspend its 401k match. I make too much money to contribute to a Roth IRA. What is ...
1
vote
1answer
55 views

How can I tell if a target date fund has too many fees?

I've read that when investing in a target date fund (401k or IRA) there are often a lot more fees involved than other funds. These are an easy option though if you're not too sure what to invest in. ...
1
vote
1answer
34 views

Specifics on rolling over “late” 401k contributions

After I had to roll over my 401k recently, my former employer made 2 more small contributions to it for some reason so those checks have been mailed and made payable to me (minus the 20% withholding). ...
1
vote
3answers
159 views

401(k) which is better, more traditional or less ROTH

My company matches my 401(k) contributions, 4% to my 5%, so I'm contributing at least 5%. So I ran some numbers. If I switch from traditional contributions of 5% to ROTH contributions of 5%, my take-...
1
vote
0answers
23 views

Employee and employer 401k contribution limits [duplicate]

From my understanding, in 2020, the maximum an employee can contribute to their 401k is $19,500. The total contribution limit for an employee and employer combined in 2020 is $57,000. Now I understand ...
3
votes
2answers
143 views

Are funds mixed between 401k and Roth 401k?

If your employer offers a 401k and Roth 401k plan, are these considered two separate accounts? If I want to contribute the maximum funds allowed for 2020 ($19,500) equally between both, does that mean ...
0
votes
2answers
118 views

Employee provided 401k account has very limited options. Is there a way I can move to a better account?

My employer-provided 401k has very limited investment options. Mostly I see two options: (1) They have several target-date funds like this: LifePath® Index 2040 Non-Lendable Fund M which supposedly ...
3
votes
0answers
99 views

Withdrawing from after tax 401k rollovers to Roth IRA

I have after tax contribution. I have setup Roth in plan conversation. If I rollover that money to a Roth IRA, which I can do since it is after-tax money. Do I have to wait for 5 years to withdraw my ...
0
votes
2answers
195 views

Putting all 401k into stable value fund?

The stable value fund option in 401k offers capital preservation with some benefit like fixed income. The market is very volatile. Is it good idea to put all 401k to stable value? My 401k completely ...
3
votes
1answer
116 views

401k rollover being held up by former employer

I was terminated from my job on 5/15/20, on 6/12/20 I initiated a rollover of my 401k from my former employment into another 401k that I have, Principal Financial is the plan administrator, they have ...
0
votes
0answers
92 views

Pull money out of old pension and start a stock trading account? [duplicate]

I have 10k in an old pension plan with a company I no longer work for. I have a 401k currently with my present employer and would like to take the 5k and start an stock trading account. Would this be ...
2
votes
1answer
87 views

Last year I left excess 401k contributions in the account. Do I need to do anything this year?

In tax year 2018 I over-contributed to my 401k due to job change. Although I discovered the problem before the tax return filing deadline, the bank refused to return the excess funds. I've consulted a ...
0
votes
0answers
21 views

Untangle post-tax contributions to traditional 401k while staying in a 401k

I know you can untangle post-tax contributions to a traditional 401k by using rollover IRAs, but can you do the same by effecting a 401k transfer? That is, would it be permissible for you to instruct ...
2
votes
0answers
62 views

Utah state tax for 401K income of a part-time resident

We have about $48,000 Social Security income annually and will receive about $36,000 401K income by the end of next year. We will stay in Utah for the first 3 months next spring and then move to ...
0
votes
1answer
39 views

Rollover IRA question [duplicate]

I have a quick question. I had 401K from 2 different past employers - Employer A and Employer B. I opened 2 Rollover IRA accounts - one in Brokerage A and another one in Brokerage B in early 2020. I ...
1
vote
1answer
49 views

Calculating a combined savings percentage when saving pre- and after-tax money

This seems like a really simple and obvious question, but I can't find any previous questions on this site that directly address it. Perhaps it's so simple that people find it trivial. Almost all ...
1
vote
0answers
39 views

From unemployed to self-employed/freelancer, how is my 401K & IRA setup?

Recently lost my job and decided to try out the freelancer route. I am in my early 40s and I expect to make about $150k before tax. I have a few questions about setting up a my 401k and IRA. Already ...
4
votes
4answers
2k views

Understand 401k contribution

I decided to add 5% in the 401k from this month and thought it will reduce my tax income but I don't see the much difference in Tax. Can someone help me understand that. My FITW Tax reduced from $459....
20
votes
10answers
6k views

Does the “15% into retirement” rule include employer contributions?

I keep seeing that you should be putting 15% of your income (link2, link3) into a retirement account. Does that include the employer match? For instance, if my employer has a 4% match, do I still put ...
0
votes
2answers
142 views

Is it true that when we can contribute $60,000 into pre-tax or after-tax 401(k), it can be all after-tax so we never have to worry about the tax? [duplicate]

Some suggestion is that if we plan to have lower tax bracket when we retire, we can contribute into 401(k) pre-tax instead of after-tax. However, if some people may contribute $60,000 into either pre-...
3
votes
3answers
157 views

Can a client pay directly into an IRA/401K?

I have a leftover 401K from my previous employer (in fact I have two of them from two different employers). Currently, I am drawing some income as a sole proprietor of a management consulting company....
0
votes
2answers
100 views

When we retire and take out the 401(k) and IRA money to buy a house, are we subject to a big portion of tax?

Say, when we get to the age of 65 or 67, and retire, and we take out most of the 401(k) and IRA money, if luckily they can grow to $1,000,000 to buy a second house, all at once, will we be subject to ...
5
votes
3answers
532 views

Is there a point to contributing to a nondeductible traditional IRA?

I, 24 y/o US citizen employed in the US, make over the 137k cut off for making contributions towards a Roth IRA. As a result, I have considered contributing to a traditional IRA. However, I am not ...
0
votes
1answer
75 views

The 50% 401K matching and 100% 401K matching can make the total contribution to $29,250 and $39,000, respectively?

Since there is a max for our contribution of $19,500, so (1) if a company matches 50%, that means the total max out at $29,250? On the other hand, (2) if a company matches 100% but only for 4.5%, ...
1
vote
1answer
62 views

For the $19.5k limit for 401K contribution in US for 2020, does that include the company matching? [duplicate]

I thought it doesn't include the company's matching, or does the $19.5k actually include the part that the company will match?
0
votes
1answer
107 views

Is a 401k withdrawal considered “earned income?”

I left my job in 2018, where I earned $3000 that year. At that point I had $500 in a 401k plan, which was too small to do a rollover to an IRA, so I cashed it out (after 20% tax I received $400, and ...
2
votes
1answer
94 views

If I take a home equity loan out can it “add” PMI to my mortgage?

So ironically I took out a 401k loan to avoid PMI on a property we purchased. I've recently left the job where I had the loan and want to repay the balance, but will need to borrow in order to do so. ...
2
votes
1answer
129 views

401K Liquidation

I contributed to a 401(k) for the past three years and due to market volatility there is no gain in my contribution. Its hard earned money. Is it possible to sell all the stocks and bonds contributed?...
0
votes
1answer
113 views

Retirement benefits vs. better salary/health insurance

I'm a research scientist and postdoctoral fellow in a US government lab. Currently, my position is funded through a DOE-run organization as an educational/training position. The salary is good for my ...
1
vote
2answers
51 views

Contributing to a target fund after the date of the fund

If I contribute to a target fund that's targeting 2040 as a retirement date, but I don't end up retiring until 2043 what will happen after 2040? Will I still be able to contribute to the same plan ...
2
votes
2answers
155 views

When is a 401(k) better than a pension?

There are tons of comparisons between 401(k) and pensions, with the most obvious being the concept of "defined contribution" vs. "defined benefit". This makes them a sort of apples to oranges ...
1
vote
0answers
53 views

My company switched 401k Providers and the new provider re-amortized my loan and changed the payments

My company switched 401k providers a few years back. Recently I have been playing around with amortization tables in excel and realized that my payment should have been lower. After talking with ...
2
votes
2answers
165 views

Can an ill-advised 401k withdrawal be undone?

A friend of mine purchased a home last year after renting for a while. She is approximately 60 years of age. When considering how to finance the purchase, she considered two options: Taking out a ...
0
votes
0answers
90 views

w8ben for 401k withdrawal for Indian citizen

I need to withdrawal my 401k from US account.Normal penalty is around 30% for early withdrawal .Does filling w8ben form for Indian citizen help in reduced penalties.I am in individual who worked in US ...
0
votes
1answer
68 views

401K Enrollment Benefits

I have enrolled in my 401K plan from 2016 onward. While looing into the investment portal, right now I am having only 68K but I contributed for 69K. Is it still worth in enrolling 401K? If I invested ...

1
2 3 4 5
19