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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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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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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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 ...
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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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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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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,...
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2 votes
1 answer
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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
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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
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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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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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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 ...
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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'...
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1 vote
2 answers
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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
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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 ...
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1 vote
1 answer
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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
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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 ...
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2 votes
1 answer
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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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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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2 votes
2 answers
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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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2 votes
2 answers
531 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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3 votes
3 answers
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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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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
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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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4 votes
2 answers
212 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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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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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
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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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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 ...
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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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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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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 ...
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0 votes
1 answer
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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
467 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
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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
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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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0 votes
0 answers
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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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3 votes
0 answers
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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
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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
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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
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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
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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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2 votes
0 answers
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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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4 votes
1 answer
422 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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-1 votes
1 answer
125 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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0 votes
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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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1 vote
2 answers
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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 ...
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4 votes
1 answer
129 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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1 vote
2 answers
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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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3 votes
1 answer
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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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2 votes
1 answer
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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 ...
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