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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5 votes
3 answers
254 views

Financial efficiency - purchasing a car with cash from retirement withdrawal vs. by financing

When someone in their retirement is purchasing a car, is it financially more efficient for them to take a lump sum of cash out of a deferred-tax retirement account (and pay income tax on it), or is it ...
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2 votes
1 answer
106 views

Borrow from 401k (and pay interest to myself) or take a loan from bank (and pay interest to the bank) to buy a car?

Should I borrow against my 401k at 6% interest rate (which I pay to myself) or take a loan through a bank at 3.5% interest rate (which is paid to the bank)? Buying a car for my kids and can't afford ...
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1 vote
2 answers
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Does Highly compensated employee designation for 401k plans consider total income from multiple jobs?

Looking for guidance on following situation: If someone works for two employers who both offer 401k. Is the HCE qualification based on the compensation from the EMPLOYER for which the employee chooses ...
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2 votes
1 answer
53 views

401k Matching Rules Regarding Losses when Match is Revoked

My employer matches my 401k but it is on a long vesting schedule and I will almost certainly leave before it finishes vesting. I know I will have to give it back but was wondering how to gains/losses ...
1 vote
1 answer
65 views

How do I reverse an excess 401K Contribution?

I contributed around 10K with no employer match. I changed jobs in the mid year, now the I have new 401K with Match. I want to max it out so I can get the match in full. How do I take out the ...
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0 votes
0 answers
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401K loan duration when purchasing primary residence

I'm considering taking out a 401K loan from my Solo 401K (I'm both the only participant and administrator) as part of financing the purchase of my primary residence. I know that you can borrow up to ...
1 vote
1 answer
43 views

Is there a penalty for rolling a 401(k) into new employer while the markets are down?

I have a 401(k) account with my old employer which I have not rolled over yet to my new employer. As I am no longer contributing to the old account or employed by them, I am wondering if there any ...
1 vote
1 answer
126 views

Can contributing to 401(k) make me eligible for Roth IRA?

In 2022, the Roth IRA contribution limit reduces from $6000 to $0 for as income increases from $129k to $144k (for a single filer). The 401(k) limit is $20,500. If my salary is $145k (too high for ...
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4 votes
1 answer
270 views

What are the Italian equivalents of 401K, Roth IRA and Savings account?

I am Italian and I consume a lot of internet content about saving and investing (that's why I am here too!). I often hear or read about: 401K Maxing out your 401K (and meeting your employer's match) ...
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0 votes
1 answer
179 views

Do you get any social security credits if you put 100% of your income in a 401(k)?

Scenario: Your spouse is the primary earner You had a 1099 side-job earning $15k You put all $15k in a solo-401(k) plan Would you earn any social security credits in this situation?
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1 vote
2 answers
273 views

Does 401k contribution to index fund pay dividends?

My 401k fund has an option for investment in S&P 500 index fund, however the investment doesn't come with any dividend yield. S&P 500 index funds such as VOO, SPY come with a dividend yield. ...
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0 votes
2 answers
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Why is the YTD return for my 401k contributions down 20% but the YTD return on S&P500 is 1.5%?

I imagined that my 401k investments must be going to some low-risk-stable-return type of financial investments. However, when I checked the YTD return on my 401k contributions for this year, it was ...
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1 answer
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How to contribute capital from 401k or IRA to a Series LLC?

I am new to this thread and I'm seeking some basic advice or comment for this matter. Please assume that any investment risks are taken into consideration. Objective: I would like to bootstrap an ...
0 votes
0 answers
21 views

Traditional 401k to Roth IRA - do employer contributions count as Roth IRA contributions or earnings? [duplicate]

I understand that Roth IRAs allow withdrawing your contributions before age 59 1/2 with no penalty. At my old job I had a Roth 401k, but my employer's match went to a Traditional 401k, and I'd like to ...
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0 votes
2 answers
57 views

If I have a Roth 401k, what would making after-tax contributions mean?

(To start, i know the Roth 401k uses after tax dollars, and i know that the IRS allows further “after-tax contributions.” This makes it seem kind of confusing, as it would appear I’m asking about ...
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3 votes
0 answers
50 views

Tax calculation question from Forbes article

From this article, When To Use Pre-Tax Vs Roth 401(k) Contributions, I'm confused on how the 31% difference was calculated from the given example: For example, if your household taxable income is $500,...
2 votes
1 answer
167 views

Can I roll over my Roth IRA into 401(k), and should I?

I have an Roth IRA through Wealthfront that I opened several years ago. I also have a company 401(k) through Fidelity NetBenefits. Since the Roth IRA is a personal account (no employer match, no ...
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4 votes
3 answers
907 views

What is the difference between a 401k rollover vs IRA?

I have a Fidelity account for my older company's 401k plan which will expire soon. They told me if I don't do anything, it will convert into an IRA automatically. Alternatively I can make a rollover ...
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12 votes
2 answers
3k views

Employer tax benefits of 401k matching vs salary increase

I was trying to understand why a company would offer 401k matching instead of higher salaries to employees. I read that some states require companies to offer retirement things which makes sense. One ...
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1 vote
2 answers
139 views

Can I put my raise into 401k without a change to my paycheck & taxes?

I received a 2.5% raise. My HR website says : per paycheck (13%) : (12% before tax + 1% Roth 401k) and Getting Full Company Match Yes If I take home $X/week, change my contribution to 15.5%, will ...
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2 votes
0 answers
108 views

Identity theft issue: Fidelity showing another person’s profile on my 401k, Fidelity closed the request

My employer provides 401k and I opened a 401k with Fidelity in September. I have been contributing to the 401k since. Recently, I logged into my account and my user profile on Fidelity is showing a ...
2 votes
1 answer
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How are 2nd year tax filing for coronavirus related early withdrawal entered?

I need help understanding how/where to enter the 2nd year's worth of the 3 year spread of tax on 2020's coronavirus 401k withdrawal. How do you file the 2nd and 3rd year? The first year I got 2 1099R'...
1 vote
2 answers
275 views

My Schwab 401k account has been emptied inexplicably, can I get my money back?

Today, while I was preparing my 2021 tax, I was checking my 401k account and shocked that my account is empty. Somebody sold my ETF holding and transferred out on Sep 01 2021. It's Saturday, nobody ...
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2 votes
2 answers
137 views

Should one max out one's 401(k) at the beginning of the year?

Assume that: The employers catch up on the missing match at the end of the year, via as year-end true-up contributions. Should one max out one's 401(k) at the beginning of the year? I have no idea ...
1 vote
1 answer
66 views

How do should I optimize my 401k employee contribution to maximize my employer's contribution?

I just want to maximize my employer's contribution. My current employer plan has the following constraints Company will provide a 100% (dollar-for- dollar) match on the first 5% of eligible W-2 ...
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2 votes
2 answers
214 views

Are the fees in my new 401k reasonable?

My employer has just moved from a Simple IRA to a 401k plan that I enrolled in. The fund in the 401k plan is the Vanguard VFORX 2040 target date plan. I felt pretty good about that expense ratio, but ...
2 votes
1 answer
153 views

What happens to the NOT vested balance when my former employer switches 401k companies?

I have a complicated 401k situation. I had a contract job and the contract I was on got cancelled. I did not voluntarily quit, and I was not fired with cause. My contract was cancelled due to a ...
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0 votes
2 answers
115 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 ...
2 votes
2 answers
222 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 ...
2 votes
2 answers
577 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 ...
3 votes
3 answers
325 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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1 vote
1 answer
66 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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3 votes
1 answer
160 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 ...
4 votes
2 answers
221 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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0 votes
2 answers
279 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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1 vote
1 answer
60 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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4 votes
1 answer
36 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 ...
8 votes
4 answers
4k views

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 ...
2 votes
2 answers
134 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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0 votes
1 answer
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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?
5 votes
7 answers
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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 ...
0 votes
1 answer
119 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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6 votes
2 answers
497 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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2 votes
4 answers
141 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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2 votes
1 answer
78 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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3 votes
0 answers
80 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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1 vote
1 answer
107 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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9 votes
5 answers
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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1 vote
1 answer
81 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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5 votes
1 answer
605 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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