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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2answers
105 views

Self Directed IRA take over current mortgage?

My family and I currently live in a townhome. We are interested in buying a single family home which will be our primary residence. We would like to keep this home and rent it out as an investment ...
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2answers
175 views

Reduce salary in exchange for higher employer 401k contribution?

Would it be in my interest (assuming my employer agrees) to reduce my salary by x amount in exchange for an increase in employer 401k contribution for x amount? For example if I make $150,000/yr and ...
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2answers
499 views

If you sell stocks within a 401k but don't pull the money out of your account, is it taxed?

If I have say a 401k account, and say I sell some of my stocks in there, but I don't pull the money out of my account, is the only tax involved the capital gains tax? Or will I pay my income tax on it ...
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3answers
313 views

Is a company 401k better than a IRA?

Company is moving to a poorly rated 401k provider. If I keep the money in company 401k I can take advantage of dollar cost averaging with poor fund choices. If I rollover to an IRA I can invest as I ...
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1answer
64 views

Distribution of funds between pre-tax and ROTH for a under 30 years old

What is the usual contribution percentage for an under 30 years? I am trying to change mine but I am not sure how much what I should change it to. equal distribution between ROTH and pre-tax or more ...
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1answer
154 views

Do employers typically match the contributions you put in proportionally?

My employer goes through Transamerica for our retirement accounts, and it allows us to split up our contributions between a 401k and a Roth account. Since there is a limit to the Roth contributions ...
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1answer
174 views

Can an employer limit 401k participation for HCE’s?

I just received a notice from my employer that based on my 2021 income, I’m considered a highly compensated employee for 2022 and not eligible to participate in the company’s 401(k) program for 2022 (...
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2answers
224 views

Better to withdraw from 401k or take out home equity loan for investment opportunity?

There is a fast-approaching investment opportunity (January) that I very strongly believe will have significant short-term (2x - 5x within a matter of months) and long term returns. I need ...
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1answer
51 views

When 401K gets rolled over to a rollover IRA OR Traditional IRA gets rolled over to Roth IRA, do the stock units get preserved?

Consider a traditional 401K getting rolled over to a rollover IRA. When such a rollover happens, do the stocks and mutual funds get sold and the total sum gets transferred as cash into the new account ...
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1answer
33 views

Does Contributions To A Simple 401K Plan Count Toward The Yearly "Normal" 401K Contribution Limit?

I work two jobs and have a "normal" 401K plan from one of the two jobs. The contribution ceiling for a "normal" 401K plan in 2021 is $19,500. I know that contributing to a SEP ...
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4answers
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Am I losing money in my 401 K?

I have just switched my 401k plan over to the new company I work for. My rate of return is -5.13%. My payroll deduction is 8% and for some reason I guess my company is not matching at all as stated ...
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2answers
133 views

Is 401k contribution from non-salary sources allowed?

Scenario: I was unemployed from January through July 2021. I started new job at the end of July 2021. Employer allows me to join 401k plan after 90 days, which means I’m enrolled starting November 1, ...
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1answer
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Net unrealized appreciation only applies to pre-tax 401k?

I just want to confirm that NUA only applies to pre-tax 401k because a post-tax 401k/ira doesn't have any taxes for withdrawals. Or am I misunderstanding something?
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7answers
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What can we do when we are stuck in a conservative 401(k)?

Right now, I am working as a software contractor and my agency allows 401(k), but only in conservative investments, such as Vanguard Target Retirement 2030, 2035, or S&P 500 index fund, or at most ...
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1answer
85 views

How to invest in El Salvador bonds via fidelity

El Salvador bonds have gone down lately and I would like to invest in them. I use Fidelity to manage my 401k investment fund, but I can't find any symbol to invest in related to El Salvador bonds. Is ...
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2answers
442 views

Rolling Over a mixed 401k (Roth + Traditional) into a new 401k

If I have a 401k that has both Roth and Traditional contributions, then leave the job and want to roll it into another employer's 401k will that be possible? Will there be complications because of ...
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4answers
139 views

Should I separate a portion of my 401k into an annuity?

Bank financial planner thinks I have too much (dollar wise) in mutual funds in my 401k. I am 12 years from retirement. They suggest taking a portion of that and opening an annuity for some protection ...
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1answer
72 views

Rolling Traditional 401k Over then making Roth Contributions

I have a Traditional 401k that I want to rollover into my new 401k which I haven't made any contributions to yet. Can I roll my traditional 401k over to my new 401k, then make Roth contributions to my ...
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0answers
35 views

Starting/acquiring a business to minimize RMDs

Suppose an individual is 72 years of age and would like to minimize RMDs from a traditional 401k plan. They are willing to continue working in order to qualify for the still-working exception, as ...
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0answers
77 views

How do I find the 401(k) administrator of a long gone company?

I was recently informed by the Social Security Administration that I "may" be entitled to some retirement benefits from a company I worked for in ... 1996. The company (which was publicly ...
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1answer
105 views

Leaving US temporarily to pursue a Ph.D. what to do with my assets?

I am currently on an H1b working as a software engineer in the US. I am applying to a lot of Ph.D. positions in Europe & Asia. I have about 350k USD in Index funds(100k+ profits) and 150k USD in ...
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5answers
6k views

Company with high match for 401K vs IRA, which to choose?

I am fortunate to be at a company with a pretty high 401K match, 50% with no cap. Normally when I've saved in the past, I've done the 401K up to the amount matched, and then chose other savings ...
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1answer
56 views

Return of excess 401k contributions after rollover to IRA

Suppose the following: Contribute $50,000 to pre-tax 401k 401k grows by 5% 401k is rolled over to traditional IRA What is the proper course of action to return the excess 401k contribution? What ...
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1answer
594 views

What happens to investments inside a 401(k) when rolling it over?

Suppose a 401(k) contains mutual fund investments and is linked to a brokerage account holding various stocks, ETFs, mutual funds, etc. What happens to those investments should the 401(k) be rolled ...
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0answers
82 views

401k Matching: Why match 50 cents on a dollar up to 8% instead of dollar for dollar up to 4%? [duplicate]

What is the reason an employer would match 50 cents on every dollar up to 8% instead of matching 1 dollar on every dollar up to 4%? Is it the same or approximately the same thing?
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1answer
419 views

401K Loan - Company switched providers and rules

My company (a large health co) merged with a larger Pharm Co. In this process, we basically got all the Pharm Co benefits. When with the health co, I took out a 401k loan which had the provisions that ...
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1answer
123 views

How much of my 401(k) should I roll over to a Roth IRA to pay the least taxes?

I am 61 yrs old want and I want to start rolling over my 401K to a Roth-IRA account. How can I figure out how much money I should roll over in order to pay the least taxes? Through a google search, I ...
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1answer
137 views

Does a company allow its employees to roll over their 401K money to an external IRA account while being employed?

If a person want's to transfer his/her 401K money to an external traditional IRA account (say Chase) while he is still employed at the company, will his company permit that? The employee might wanna ...
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2answers
73 views

Will rolling over my 401K into a traditional IRA have any tax consequences if modified adjusted gross income (MAGI) is above the IRS income limits?

I currently have a 401K account from my employer. I have had this account for the past 4 years. I wish to have better control over my investments made in this retirement account, so I am considering ...
4
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1answer
112 views

401K balance while in foreign company branch

I have transferred from a US company to a branch in home country. I'm paid through local country payroll and have no ties with US or the US branch payroll any longer. When I requested a distribution ...
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2answers
101 views

What tax forms have to filed when doing a rollover from After-tax 401(k) to Roth IRA?

What tax forms have to filed when doing a rollover from After-tax 401(k) to Roth IRA? Examples appreciated.
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1answer
77 views

How do I manage 401K Contribution limits across multiple sources of income?

I have an employer sponsored 401K plan where my employer matches up to a certain limit. I max out at 19.5K and my employer pays about 7.5K which works out to be 27K total. Now I also perform ...
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1answer
80 views

Are there IRS limits for 401k to Roth IRA rollovers?

I am 61 years old and I have two 401k plans from former employers. I want to roll over these 401k plans into a single Roth IRA account over a period of time in several intervals. I would like to know ...
2
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1answer
38 views

Excess 401k Contribution Found After April 15th but before May 17th

Hoping for an answer ASAP. I just found out I have overcontributed to my 401k for 2020 (2 different employers). It's after April 15th so Fidelity can no longer withdraw the excess. However, I haven'...
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0answers
34 views

Which field of W2 is compared with 130k threshold for NHCE/HCE classification?

I understand that many companies use the 125k/130k/etc fixed threshold for classification of NHCE/HCE employees (whereas others use the 20% rule), which field of W2 is used to determine this? For ...
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0answers
46 views

401k refund if an HCE front-loads 19.5k, leaves on March 1, and the ADP test fails?

Let's say it's your third calendar year working for a company with no vested employer match; you're classified as HCE. You make a mistake of front-loading 90% of your income in the first two months, ...
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0answers
52 views

Can there be different After-Tax contribution limits for HCE and NHCE in a Mega Backdoor Roth 401k?

Is it possible in a 401k plan with Mega Backdoor Roth to have different After-Tax contribution amount limits for each employee depending on whether they're part of the HCE or NHCE group? For example, ...
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2answers
604 views

What is a 401k plan in some contracting agency that is 0% to 100% contribution and limited to 25 funds?

I have worked as a software contractor before, for a company and they didn't have 401(k) plan at all. And then I have worked at a different company, with something like, we can contribute, and for the ...
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2answers
184 views

At what age can I withdraw from my 401k

I am 61 years old and I don't want to withdraw money from my 401k too soon. I am wondering at what age can I take money from the 401K without being subject to penalty? Thanks
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1answer
80 views

If I don't plan to sell the stock until age 60 or 65 in USA, is it exactly the same in a regular account vs an IRA or 401k account?

With the limitations of how much money we can put in IRA, Roth IRA, or 401(k) account, I just thought, what if we plan to buy the stock and know we won't sell it until age 60 or 65, when our income ...
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0answers
50 views

401k or Roth IRA for non treaty countries

This might be a bit complicated, so pretty please bear with me a little. I am currently living in USA on a E2 visa. My employer offers both 401k and Roth IRA. I do not plan to neither retire nor ...
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3answers
139 views

Optimizing Savings Allocations

I am currently trying to decide the best way to allocate my savings, and I would appreciate your input. I am trying to budget roughly based on the idea of using 50% of my post tax income for ...
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3answers
97 views

Taxes on growth - Traditional vs Roth 401K

Let's say I can put $10K today in my 401K. Let's assume this investment theoretically grows to $100K by the time I retire. Putting aside income brackets for a moment, is it true that if my 401K ...
3
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1answer
51 views

Are employee (NOT employer) contributions to a 401(k) ERISA-protected?

Say you work for a business that offers 401(k) plan. Investopedia says: Under the Employment Retirement Income Security Act of 1974 (ERISA), the funds in your 401(k) only legally belong to you once ...
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2answers
134 views

Taking out a 401K Loan vs. Liquidating Investments - what's better?

Let's assume the following: I need $50K for various expenditures (aka simply spending, not paying off CC debt or putting the money somewhere else). I can either liquidate regular taxable investments ...
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0answers
45 views

IRA contributions income limit [duplicate]

I never calculated my MAGI, but I don't have any student loans, educational expenses or anything like that for that matter. I just claim standard deduction every year. My net income this year is going ...
2
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1answer
131 views

How does 401k loan default after you left your job?

I'm trying to find some basic answers here but having a very hard time. I have a job currently and I'm about to lose it. I have pulled out a 401k loan and paying it back through the payroll deduction. ...
6
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4answers
1k views

How should I split my contributions to Roth IRA and Roth 401k?

I am in my early 20s and currently contribute ~18% of my income to my retirement accounts, 7% to company sponsored Roth 401(k) (Popular Investment Company) and 11% into my Roth IRA (A "Big 3"...
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4answers
9k views

If I sold some stock by mistake and immediately bought it back, is that sale still subject to capital gain tax in USA?

Today I wanted to buy a few shares of Apple (AAPL), let's say 10 shares. When I handled the UI, there was the "By number of shares" and "By dollar amount" and then "Market&...
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1answer
56 views

Rolling over funds from a traditional IRA into an Individual 401(k) to avoid the pro-rata rule

I expect that in 2022, my income will exceed the deduction limits for a traditional IRA, so any contributions I make to it will be non-deductible. My understanding is that once I make a non-deductible ...

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