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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 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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Have I saved too much for retirement so far?

I currently have a roth ira as well as a 401k from fidelity. I have around 350k in my 401k and another 10k in my Roth IRA. I just turned 40 recently. Am I saving too much for retirement and should I ...
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5answers
6k views

Should I stop contributing to retirement accounts?

My wife and I are in our later 30s and make about $100,000 per year from salary. We also net about $40,000 from rental properties that we have purchased over the past several years. Our essential ...
2
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2answers
84 views

401(k) distribution tax calculation

Wanting to receive $25k distribution from my fully vested 401k w/former employer. Figuring required 20% withdrawal penalty to be $5k (25,000 x20%), so my account balance would be reduced by a total ...
2
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4answers
268 views

Former employer deposited money in my 401K by accident

Former employer put about $3K in my 401K after I had left the company for 1 year. A year later they discovered it and are asking for the money back. Do I legally owe this to them?
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1answer
50 views

Are 401k withdrawals included in income for Medicare premiums?

How do I report 401k withdrawals to Medicare if the IRS does not report it?
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0answers
71 views

Where do I report 1042-S income on 1040 form?

US citizen living in Puerto Rico. For 2018 will receive a 1042-S instead of a 1099 R for 401 K withdrawals because tax rule changes. My address is Puerto Rico outside 50 states and no W-9 on file. (...
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1answer
68 views

Why doesn't Vanguard allow to pay fees pertaining to 401(k) accounts using resources located outside the 401(k) accounts?

Why doesn't Vanguard allow to pay fees pertaining to 401(k) accounts using resources located outside the 401(k) accounts? Is that due to some law, some other constraint, or is that just some arbitrary ...
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2answers
246 views

Why would an employer prevent their employees from investing in the employer's stock through the employer-sponsored 401(k) account?

Why would an employer prevent their employees from investing in the employer's stock through the employer-sponsored 401(k) account? I saw that restriction when reading the "Vanguard Brokerage Option (...
2
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1answer
85 views

How does the 401k work if i move from US to canada working for same company?

I have been working in USA from past 15 years and now planning to move to Canada for the same company. So is there a 401k equivalent in Canada where i can continue contributing ? Or i can still ...
4
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1answer
249 views

Why are the limits on 401k much higher than IRA?

I'm currently working in a contract position with no option to contribute to a 401k. For 2019, the contribution limit on a 401k is 19,000 vs 6000 on an IRA. Why is there such a big difference? I could ...
3
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1answer
335 views

My 401k failed the nondiscrimination test — how to avoid taxable distribution?

As in this question, and this question, my ex-company's 401(k) failed the nondiscrimination test. I've recently received a letter from the company's HR to the effect that I will receive a corrective ...
0
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1answer
161 views

401(k) losing money, considering withdrawal to pay off mortgage

I left my job 13 years ago with $80,000 in a 401(k) plan and $500 a month pension. Two years ago the company told me that I had to get money for pension. I had already lost $45,000 of my 401(k) due ...
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2answers
201 views

Should I pay off my LOAN from my 401(k) ASAP?

I recently saw a ? on the Forum about "Should I pay off my Home LOAN from my 401(k) or continue to pay Interest to myself". Most responses seemed to think that paying it off ASAP was the best idea ...
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3answers
1k views

Vanguard Target Year retirement funds track record

Some personal finance "gurus" recommend funds with a track record of at least 10 years. Both my current and previous employer default to Vanguard target year retirement funds. These funds from 2015 ...
2
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1answer
149 views

401k Statistics

This article claims: In fact, the average 401(k) balance at Fidelity — which holds 16.2 million 401(k) accounts and is consistently ranked as the largest defined contribution record-keeper — ...
2
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2answers
538 views

Can I use my declining to put money into a 401k (for which they would match up to 5% if I did) to negotiate a higher salary?

I do not want to contribute to my 401k, however, my contracting company does offer a match of 5%. Can I use the declining of this 401k to negotiate a 5% higher (or a bit lower) salary? Is the company ...
2
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2answers
330 views

should I pay off 401k loan while the market is crashing?

I have an outstanding 401k loan for 33k at 5.5%. I wanted to pay it off so not to lose out on the investment opportunity. HOWEVER, the market is crashing and my last quarter 2018 401k statement ...
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2answers
131 views

What are the limits for 401k and Roth IRA contributions and if I can catch up for the years missed?

I know the basic difference between a 401k and a Roth IRA that one is pre-tax and another is post-tax. I've also learned that I can contribute towards both a 401k and Roth IRA. I would like to know if ...
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1answer
74 views

Old Employers 401k Automatically Rolled to IRA?

I switched jobs about 7 months ago and am afraid I put the rollover steps off for too long. I checked my old employers 401k website to see that my 401k account now shows $0.00, and does not show the ...
2
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1answer
63 views

Can Traditional and Roth 401k be withdrawn in a ratio to minimizes taxes in retirement?

I've seen posts claiming that if you have a mix of pre-tax and after-tax savings in a 401k, the pre-tax money can be withdrawn up to the threshold of the top of the current 12% tax bracket and after-...
2
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2answers
208 views

Two jobs two 401K both matches up to 6%

I have two jobs, both offer 401k matching up to 6%. Is there any advantage of splitting my 401 K contributions ( $9,250.00 each) between employers to take advantage of the 6% matching or it doesn't ...
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3answers
265 views

Take money out of paycheck into income producing asset(s)

My company has a 401k plan where they would take out money from my paycheck and match whatever I put into it. The concept of taking money out of my paycheck every two weeks and put it into a ...
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4answers
905 views

What are the advantages of a tax deferred investment account?

So, I suspect I am missing something huge about this. But I notice there is a lot of talk about retirement accounts recently such as 401-Ks and IRAs. I understand these come in two flavors, ...
4
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1answer
104 views

Options for non-US person outside US with 401(k)

This question is somewhat related to this one. I'm a non-US person (mid 30s) currently living and working in Europe. Previously, I lived and worked in the US (Massachusetts) for >3 years. In order to ...
2
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1answer
98 views

Are contributions to 401k outside of payroll pre-tax?

Between my payroll deductions for 401k and my employer's contribution, I don't get to my $18,500 + $6,000 catch-up limit for 2018. If I put money into the 401k account from my own funds/savings to ...
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1answer
70 views

I have a traditional IRA. Can I rollover my 401k into that account or do I need to make a new rollover-traditional-ira?

Basically that. I have a traditional IRA and have been contributing 5500 a year. I need to rollover a couple 401ks from previous jobs, can I move them to the same account? Or do I need to open a ...
2
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0answers
32 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 ...
0
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1answer
70 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 ...
2
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2answers
155 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 ...
3
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3answers
329 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
141 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 ...
4
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1answer
134 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 ...
2
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2answers
122 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
50 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 ...
4
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0answers
118 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 ...
2
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2answers
129 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
65 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 ...
4
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2answers
429 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
411 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 ...
2
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3answers
184 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
201 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
158 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
93 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
323 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’...
10
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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 ...
3
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2answers
155 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 ...
0
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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?
0
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1answer
79 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 ...