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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 ...

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34 views

401k forfeiture account is Owner’s Capital?

I own a single-member LLC. In a previous year I over contributed to my company’s 401k. Per the rules I had to withdraw an amount to compensate for the over contribution. This money went into the 401k ...
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16 views

Small business multiperson LLC, tax sheltering (401K, SEP, etc); no salaries, but disbursements

I'm a bit confused on the language of 'compensation' for setting up a tax shelter (401K, SEP, etc.) for our LLC. We are three people (unrelated), and we get disbursements, not salaries (at the end of ...
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31 views

401(k) funds - taxes living abroad? [duplicate]

If you plan to retire overseas, are you going to be taxed from the US or from the country overseas? I was not able to find any rules that could answer that question for traditional 401k funds. I ...
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1answer
66 views

Rolling over Traditional IRA and timing

I have a 401k at work. I also have a Traditional IRA. Both have losses. However, the 401k at work has much fees and expenses. Also it has larger pool of funds to choose from. I want to consolidate ...
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1answer
1k views

Minimum Nest Egg in Today's Dollars? [closed]

As a follow-on to this question, if you wanted to have a $2.5 million nest egg in 20 years, what would the nest egg value have to be today (assuming no future contributions)? Assume: 20 years ...
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1answer
88 views

Can I reduce the tax penalty on a 401k loan default by making an additional contribution?

I changed jobs recently, not of my own volition. I'm now rolling over a 401k account with my previous employer to one with my current employer. Three years ago I took a 401k loan with a 10 year term ...
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2answers
231 views

Post Tax 401k or Taxable Brokerage Account?

I max out my pre-tax 401k, HSA, and do a roth IRA or backdoor Roth IRA. With my additional savings is there any reason i would want to do a post-tax 401k instead of keeping it in a regular taxable ...
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2answers
128 views

If your 401(k) doesn't match contributions, should you max out your IRA contributions before contributing to it?

I've seen described three main advantages of 401(k)'s over IRAs: Employers often match 401(k) contributions. If your employer offers a 401(k), then the deductability of contributions to a traditional ...
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1answer
123 views

Why are the investment options in a 401(k) so limited?

Why is it that with my IRA I can buy individual stocks, ETF's, mutual funds, etc yet in my 401(k) plan I am limited to select funds? Luckily the funds I have to choose from are decent but I can't ...
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2answers
113 views

How long do I have to pay back a 401(k) loan?

I have a loan taken out on my 401k through Fidelity. The loan originated on this date: 12/19/2017. I will be leaving my current workplace and moving to a new workplace that uses John Hancock 401k. ...
2
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1answer
47 views

Pay off loan with MESP 529?

I made a bad decision and took a 401k loan last year. I question whether I could pay off the loan with a 529 account I have through Michigan education savings plan. I would not be pulling any money ...
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96 views

IRA rolled over mistakenly to 401k

In a previous tax year I rolled over some money from a former employer's traditional IRA (TD Ameritrade) to a non-Roth 401k plan (Milliman). I didn't report this on my federal tax return at all ...
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2answers
124 views

How can I roll-over a 401(k) to a different person?

I have a friend who wants to roll-over their 401(k) after recently leaving their employer to an IRA or 529 plan for her grandkids (in their name, or their parents' name) instead of into an IRA in her ...
4
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1answer
62 views

Traditional IRA in addtition to other employer provided retirement plans

I have a 401(a) and contribute to a 403(b)(aka in private sector as 401k) at max rate. I read at educational tax site that one can contribute to both 403(b) and Traditional IRA as the contribution ...
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2answers
417 views

How do I calculate the benefit of contributing to 401K vs paying off consumer debt?

I have a ~$15,000 loan with a 6% interest rate. My company matches half of my 401K contributions up to 6%, and I am in a 25% tax bracket. I currently contribute 15% of my income to my 401K. How do ...
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1answer
349 views

Minimum Required Nest Egg Formula?

As a follow-up to this question, what is the minimum size of a nest egg to support 30 years of $5,583.33 monthly distributions? I want the $5,583.33 to increase with inflation each month. The ...
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3answers
178 views

Effective Tax Rate in Retirement

Suppose that I'd like to net $5k of monthly income ($60k per year after taxes) from my 401k when I retire in 20 years. For 2017, I would need $69.5k gross distributions from my 401k because my ...
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4answers
193 views

Correctly Accounting for Inflation?

For the purpose of 401k retirement planning, suppose: An individual has 20 working years left. Upon retiring, the individual wants to withdraw $60k per year (in today's dollars) from a nest egg for ...
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3answers
143 views

Process of 401k loan removal

I understand that me taking a 401k was not a good idea so please as much as I know people want to tell me that I already know. I made a mistake...and did take a 401k loan out of my current employer. ...
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4answers
3k views

401(k) loan and job transfer

Background I took a 401(k) loan to facilitate a move across state (My wife is a newly graduated physician who took a residency offer near our new home). I up and switched jobs in the same career ...
2
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1answer
90 views

Can I contribute deductible money to a traditional IRA if I left my job before maxing out my 401(k) for the year?

I've read these answers: Can I deduct a contribution to an IRA if I also contribute to a 401(k) in the same tax year? 401K participant for part of year - Can I contribute to an IRA? Can I contribute ...
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1answer
307 views

Prevented from Rolling Over 401k Due to Company Audit - Legal?

A few months back, the startup my wife works for was bought out by a big company. Everyone was thrilled, of course, and it was a great moment for the whole team. Soon after the logistics of the ...
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1answer
182 views

Haven’t been able to work since Oct 2017. Is there tax due for a 401k withdrawal while totally disabled?

I have had 14 hand surgeries, one each on my elbow, shoulder and hip. I had 2 knee surgeries and my right knee needs replacement. If the temperature is below 40 degrees, my hands go numb and I can’...
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1answer
2k views

If I have a 401k for a partial year can I still contribute the maximum amount?

I will only have a 401k for part of this year. Am I still able to contribute up to the maximum contribution limit ($18,500 in 2018 this year) even though I only will have the plan for part of the ...
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2answers
137 views

How are my 401(k) withdrawals taxed if I also withdraw from a Roth IRA?

Let’s say it’s time to retire and I have a $2,000,000 retirement fund. $1,000,000 was accumulated in a Roth IRA and the other $1,000,000 was accumulated in a traditional pre-tax 401(k). Let’s say I ...
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0answers
22 views

Clarification on contributing IRA [duplicate]

In an assumption, If i exceeded my 401K contribution limit. Can i start contributing to IRA Account? Will that be helpful by combining 401K and IRA for the year end Tax deduction?
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1answer
73 views

Best IRA investment strategy

Two questions here: What is the best investment strategy for low risk income-oriented investor? What is an acceptable fee for IRA money management? I have a 401k account I am looking to roll over ...
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3answers
349 views

How to intentionally overcontribute to 401(k) to maximize new employer's matching?

I knew that I was going to leave my former company for one of the Bay Area startups. Expecting that I would not have a 401(k) account there, I frontloaded my contributions and maxed out my 401(k) ...
2
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1answer
92 views

Help me understand this sentence on a 401(k) distribution / rollover form

In February I changed jobs. My former job provided a 401(k), and my new job also provides a 401(k). I am filling out the forms to do a direct rollover from one to the other, for the full amount. The ...
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8answers
6k views

I have $3500 in Rollover IRA. Should I withdraw it early and pay off my credit card debt?

I have been investing a healthy amount in my current 401k with no plan to withdraw it early. I have $3,500 in a rollover IRA which has been sitting in there for about 4 years and I have done nothing ...
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2answers
92 views

Roll Over High-Fee 401(k) but lose unvested employer contribution?

I'm still a student (2 more semesters), but recently completed an internship with GoodCompany that provided me a 401(k) matching plan. While I have about $1200 in it, I'm only vested in my ...
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3answers
105 views

When planning for retirement, should $18k plan be from employer and employee?

As the title states, if I am saving and my employer matches equals $18k or more, does that meet the intent of saving at least $18k a year for retirement? For example, hypothetically saving $3k and ...
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2answers
206 views

Can a “rehired retiree” contribute to the company's 401K plan?

I retired last year (early at 55), and was recently called back in to work at my old employer as a "rehired retiree" (hourly, part time for less than 1000 hours, no prior promise of employment, etc). ...
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2answers
204 views

Risks of selecting a pension plan in the USA

I am looking at a possible employment opportunity with a state-affiliated institution in the United States. They offer a couple of options for retirement plans, and one of them is a pension plan. Of ...
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1answer
47 views

Wash Sale Treatment Using Different Tax Advantaged Accounts [duplicate]

As a follow-up to this question: Wash sale rule impact on different scenarios between different types of accounts Do HSAs and 401k's fall under the same treatment as IRAs when computing tax losses? ...
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1answer
69 views

Calculating or estimating implicit fees from 401k

I'm looking at my most recent Account Statement from a previous employer's 401k. There's a lil table on the first page with the opening balance, the range of dates that pertain to the statement, how ...
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0answers
50 views

Is there any downside for an employer to place excess true-up contributions above the 401(k) contribution limit in a non qualified account?

Is there any downside for an employer to place excess true-up contributions above the 401(k) contribution limit (IRS 415(c)(1)(A) (mirror): 54kUSD in 2017, 55kUSD in 2018)) in a non qualified account, ...
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2answers
345 views

What is the source for the maximum total annual 401k contributions?

Not that it would make much sense to put all of your income into a retirement account but why could I not deposit say 100k into a 401k in one year? What exactly prevents me from doing such a thing if ...
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1answer
152 views

Cost/benefit of maxing out 401k using mega backdoor

Forgive me if I get the details wrong and if this needs to be split up into multiple posts, but I'm very new to all of this. I'm 22, have ~60k non-emergency money saved up, and got a new job with ~...
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2answers
227 views

401K contributions vs. saving for a house

I am 47 yrs old, married and I own a townhouse (paid off recently). I currently contribute 23% into my 401K with a company match of the first 6%. I have maxed out my 401K every year for the past 3 ...
3
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1answer
156 views

Can a year-end true-up employer match exceed the 401(k) maximum contribution, in which case the employee would past of their 401(k) contributions?

In some firms, the true-up employer match for year X is received the next year (i.e., year X + 1), but it counts toward the 401(k) contributions for year X. One of the main reasons why the employer ...
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1answer
47 views

For 401k (or IRA contributions), does it matter which part is catch-up?

When you are over 50, you get an additional allowance for the amount that you can contribute to 401k - in addition to the usual limit of $ 18500 (in 2018), you are allowed to contribute $ 6000 of '...
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9answers
5k views

23 Years Old, With No Debt. Invest into Rental Properties or 401K?

I am 23 years old and selling my Sports Car/Winter Car to gain economic freedom faster (Don't really need to do this, but I want to). Currently I make around 65K a year and bought a very cheap trailer ...
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3answers
238 views

Does a 401(k) year-end true-up employer match received in year X+1 for year X count toward the 401(k) max contributions for year X or year X + 1?

In some firms, the true-up employer match for year X is received the next year (i.e., year X + 1). Does a 401(k) year-end true-up employer match received in year X+1 for year X count toward the 401(k)...
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0answers
72 views

“TIAA traditional” rollover

I have moved some 401k funds into the TIAA traditional plan. Next day I called TIAA to move my money out of "TIAA traditional." They told me that the only way is this 10 year installment. The ...
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0answers
56 views

401K: advantages and disadvantages of TIAA-CREF [duplicate]

I now have 401K in TIAA-CREF. What will be the advantages and disadvantages of keeping it in TIAA-CREF?
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1answer
61 views

Is a year-end true-up employer match supposed to be received the next year?

I was browsing a 401(k) account, which has a year-end true-up employer match and is managed by Vanguard. The employee who owns the 401(k) account joined the firm in 2017, and frontloaded their 401(k) ...
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3answers
333 views

How to withdraw money without penalty from 401k when leaving USA

I am in my late 20s and a non-resident, working in the USA. My employer has a 401k plan to which I am contributing 6%. I might be leaving US with in 3-5 years from now. What I came to know regarding ...
3
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1answer
72 views

Retirement savings strategy for non-residents in the USA

My understanding based off reading a bunch of questions on this site, and elsewhere, is that the standard advice for an American citizen, working in, and planning to retire in the US, is as follows: ...
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0answers
49 views

Why would an employer 401(k) plan prevents Roth assets from being exchanged into the SDBO Self-Directed Brokerage Option (SDBO)?

A Self-Directed Brokerage Option (SDBO) allows 401(k) plan holders to invest their 401(k) money directly into U.S. Equities, ADRs, ETFs, Publicly-traded Limited Partnerships, Publicly-traded REITs, U....