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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Are there any assets you can invest your retirement accounts in that take advantage of the illiquidity premium?
I have various retirement accounts (e.g. Roth IRA, 401k) that I have no intention of withdrawing money from until I reach retirement age, which is multiple decades from now.
But it seems like the most ...
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Confused About the Use of Bond ETFs in Target Date Funds instead of Raw Bonds
I’ve been investing in my company’s 401(k) for a while now, and since I didn’t know much about the financial market when I started, I just went with the default option: a target retirement date fund ...
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Tax on Company Stock held in 401(k) plan when doing a Roth Conversion
I recently changed employers and I want to do remove some funds from the old employer's 401(k) plan and transfer it into a Roth IRA account with Fidelity that I also just opened. The thing is a ...
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In Service 401(k) Rollover
The IRS seems to allow one 401(K) rollover to IRA per 12 month period BUT does anyone reading this have a good feel for what percentage of 401(k) plan administrators allow "In Service" 401(k)...
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Is term or whole life better?
So this is all very confusing to me I don’t understand the difference and what I need. I am a 48 year old female of average health. One dependent child. Trust age is offering me 20k whole life for $47 ...
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does the 401k 12 month loan limit reset with a new plan
Thank you in advance for any advice!
Pretty simple question:
I have an existing plan with my previous employer, I am no longer with them.
I have a outstanding loan on that plan.
I am setting up a new ...
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Roth conversion as Canadian Resident
I am soon planning to move to Canada and take up a job in Canada for next 2-3 years. During my US journey of 10+ years, I have funded my 401k and Traditional IRA.
I would like to know can I do Roth ...
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Single employer 401k excess contribution
I maxed out my pre-tax 401(k) earlier this year. I had already used up my entire employer match, so the remaining money flowing into the account was after-tax. When I looked at my most recent ...
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401K Rollover Tax Question
I recently rolled over my employee 401k to an IRA at a different financial institution. In that 401k, I had made both taxable and nontaxable contributions. Since retiring, I’ve been receiving required ...
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I am 63 with a Heloc at 9%. Should I pull from my 401K to pay off this high interest Heloc
I am 63 with a $37,000 dollar Heloc at 9%. Should I pull from my 401K to pay down this high interest Heloc and start putting the extra money away to build my savings. We have $950,000.00 in our ...
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Minimizing or avoiding penalty for early withdrawl of IRA and 401k
A friend of mine came to US to work for few years and he is forever going back to his original country because of personal reasons. He contributed to IRA, 401k and would like to take the money with ...
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Can my employer reverse last year’s payroll and put the money towards my 401K
In January 2023, my salary was below $150K, so I bought a Tesla thinking that I can get the $7500 federal EV credit.
Fast forward 9 months and my landlord increased my rent by 25%, forcing me to buy a ...
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Cashing in personal retirement for real estate
I’m currently a 40 yr old military officer approaching 20 years of service, after which I will retire. My retirement income from my service will provide ~$60k per year for the rest of my life, plus ...
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Rollover former employe's 401k after backdoor Roth IRA conversion?
I am no longer at my former employer but I have an existing 401k plan with Vanguard through them.
30% of the contributions were pre-tax. (traditional 401k)
70% of the contributions were post-tax. (...
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Move money from former employer's 401k to Roth IRA and Rollover IRA
I am no longer at my former employer but I have an existing 401k plan with Vanguard through them.
30% of the contributions were pre-tax. (traditional 401k)
70% of the contributions were post-tax. (...
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Contributing over the 401(k) limit vs investing in an index fund?
I find myself in a lucky position. I have a stable, high-paying job that allows me to achieve nearly all my financial goals, including:
Maxing out the yearly contributions to my 401(k), including ...
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Employer has been acquired. Rollover 401(k) before plan changes?
I currently have a 401(k) plan from my employer at Institution A. I also have a rollover IRA at Institution A (with funds from prior employers' plans).
My employer has been acquired, and have ...
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Is it correct that I can have a 2023 deduction for 401k that is treated by the provider as a 2024 contribution?
My last paycheck from 2023 was dated Friday, 12/29. Every date in the payperiod is within 2023.
I noted my payroll explanation shows the deduction occurring for me in tax year 2023. Today, the 401k ...
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Can I take contributions out of traditional or roth 401(k) before 59 1/2 without penalty?
Can I take contributions out of a traditional or roth 401(k) before 59 1/2 without penalty?
I'm basically looking for this table and cannot find it anywhere, please let me know if any of the below is ...
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Roth 401k - Contributions are not going in as after tax?
So, I have a Roth 401k with my employer.
I always thought that the Roth meant that I am contributing after-tax dollars into the account.
I just realized the following:
For simplicity, let's assume:
I ...
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Can you self-direct a 401k to buy you a house?
So, this question came about because I was playing thought games. It is my understanding that a 401k isn't really an account type, but a thing with the tax code. Most employer sponsored 401k accounts ...
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Excess deferral to AFTER-TAX, NON-ROTH 401K bucket. Will I be double-taxed/penalized?
I recently went over the 66k limit for employer + employee contributions to 401k with my most recent paycheck (I have one paycheck left for the CY). I'm under the 22,500 pre-tax limit. I called ...
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Rolling over Traditional 401(k) affected by Pro Rata
I currently have three retirement accounts:
Account A: Traditional IRA with Pre-tax money
Account B: Traditional IRA with Post-tax money (used for backdoor Roth IRA)
Account C: Roth IRA
Account D: ...
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What is my best option to reduce Tax Liability on an unpaid 401K Loan from a previous employer?
I lost my job in June 2023 and I had 2 outstanding 401K loans. Unfortunately I could not secure a job until 2 months later and had to use severance to pay bills instead of paying these loans back. ...
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Excess deferrals to after-tax, non-Roth 401k (just happened this paycheck) – just ask the plan for a reversal? Tax implications? MBDR implications?
It’s hard to google this/find this specific situation for advice.
My last paycheck deferral on to my 401k (on 12/8/2023) resulted in exceeding the yearly maximum employer + employee = $66K limit. (2 ...
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Yearly 401k Contribution Limit Question
December 22 is the day of my last paycheck for the year. I'm trying to contribute the maximum allowed by the IRS for the year. Since this is the last paycheck I'll get for the year, would that be ...
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How is 401k basis calculated? (Warning, wrong question.)
Normally if you sell one equity and buy another with that money, any gains or losses are reflected in your taxes at the time you do that rebalancing and you have a new cost basis on the new investment....
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Is this a viable strategy for avoiding the pro-rata rule for backdoor Roth while maintaining the superior investment options in my non-Roth IRA?
Assume that my 401(k) supports both reverse rollover from IRA and in-service rollover to an IRA. I am doing a backdoor Roth, and want to avoid the pro-rata rule. The general way to do this is to ...
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Contribution from personal checking account to Solo 401k as Single-Member LLC
I have Single-Member LLC (file as a sole proprietor). Should I make contributions (Employee deferrals, Employee after-tax contributions, Employer contributions) to a solo 401k from my business ...
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Consolidating Multiple Solo 401k Plans into One
My spouse and I have separate solo 401k plans (let’s call them Plan A and Plan B), which we opened a few years ago when we undertook self-employed activities. This year, we opened an LLC as QJV and ...
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Converting some Pre-Tax 401k Contributions to Roth Contributions
Is it possible to convert some Pre-Tax 401k contributions to Roth contributions each year? Since I would have to pay taxes on the amount converted I wouldn't be able to do it all at one time.
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401k Contributions Guidance for Two-Member LLC in a Community Property State
We established an LLC at the beginning of this year, with just two members – my spouse and myself. We reside in a community property state and file our taxes jointly as a married couple.
Throughout ...
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Does taking a 401k loan have the same effect as a hedge against a down market?
I have a 401k balance in the low six figures.
I maximize my contributions every year to the IRS max and my employer has a 6% match. This results in about ~$35k of new money going into my account every ...
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Advice on 401k rollover to IRA
Basic question probably. I m looking for advice on rolling over a portion of amount in my 401k to an IRA.
My needs are: a) to eliminate tax on withdrawal from IRA
b) Have flexibility of withdrawal ...
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Roth vs Traditional 401K when paying income tax in two states
I graduated in May and got my first full-time job and would like to being contributing more to retirement. I live in New York State (not NYC) and work in Connecticut so I pay state income tax in both ...
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Tracking down old IRAs / 401(k)s
How does one go about tracking down 401(k)s from previous companies? Is there a more convenient method than trying to get in contact with HR from these past companies? I wouldn't mind paying for a ...
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After 4 yrs, new money shows up in closed 401K account
I separated from a company on 12/30/2015. Feb 2016 I paid $60 distribution fee to rollover the entire 401K balance to an IRA. Fast forward 4 yrs, in March of 2020 I get an email "your statement ...
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How to vet a potential financial advisor to avoid being scammed?
Most of my retirement funds are currently in an account at Fidelity. I was contacted about a year ago by one of the many wealth management services out there, and through a number of telecons and ...
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Considering current market situation is it wise to convert 401K account into IRA
This is what I know about 401k and IRA accounts:
401k accounts are employer-sponsored plans, which means that you can only participate in a 401k plan if your employer offers one. IRAs, on the other ...
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In the US, is post tax 401k different from Roth 401k?
I had a talk with the brokerage firm retirement planning team, and they told me that if I have money in 401k, it can be pre tax, post tax, or Roth 401k, and even post tax and Roth 401k are different.
...
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My employers "401(k) contribution" is cash, not an actual retirement account. What are my options?
I just took a job that I like, and the line in the offer letter turns out to be misleading (I think through inexperience, not manipulation).
This is it:
You will eligible to receive a 401(k) match of ...
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US rollover IRA for non-resident alien
I am not a US citizen, and I am currently not resident in the US. I lived and worked in the US between 2014 and 2016 and I have a 401(k) from that time. The 401(k) plan is being terminated and I am ...
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Do I need to keep/file "Distribution Statement" for Mega Backdoor Roth IRA?
My new employer offers the Mega Backdoor Roth option. After-tax contributions can be automatically & immediately converted to Roth within the 401(k), and can be rolled over to a Roth IRA at any ...
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Quotes for funds in my Fidelity-managed 401(k)?
I've had several employer-provided plans through Fidelity over the years.
Fortunately, they offered extremely low-cost passive investment options, like Vanguard Institutional Index Trust, which tracks ...
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Did I give the right advice to my father about his 401k being down?
My dad has seen recently that I have taken an interest in finance and he asked me what he could do about his 401k being down.
So I said the US is currently in a recession and now you should put in ...
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How to 'recession-proof' a 401k (least risky investments)?
A 401k can have risky and less risky investments.
What are recommended as the least risky investments within a 401k within the USA??
Presently most of the 401k is in conservative funds (PHYZX, MWTIX).
...
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pending recession: keep money in 401k or savings account?
Husband and I are on Social Security.
I have a 401k of about $225K, not a lot.
With the impending recession, probably during Q2 2023, husband wants me to withdraw $$$ (e.g. $8K) from 401k and put it ...
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Does the pro rate rule on taxes for backdoor Roth IRA conversion apply if you have multiple Roth NOT traditional IRAs?
This is a follow up of the question here about rolling over traditional IRAs to 401k.
The pro rata rule looks at the amounts in all your traditional IRAs when you do a backdoor Roth conversion. Does ...
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Can I regularly direct funds to a different retirement account?
I don't like my company's retirement plan sponsor. I feel their array of investment options are quite poor (poor because they don't have many options, their expense fees are high, and they don't offer ...
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What are the reasons to avoid rolling over IRA into 401k plans?
Are there reasons for and against doing this?
For
I can only think of having more options for what securities to buy in IRAs since 401k options are limited.
Against
The only reason to do the IRA ...
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