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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2
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1answer
68 views

Can a Roth 401(k) be transferred somehow to a Roth IRA if younger than 59.5-year-old and not leaving one's job?

I understand that: A Roth 401(k) may be rolled over to a Roth IRA if older than 59.5-year-old or if leaving one's job. It is possible to do in-service distributions from an after-tax 401(k) to a Roth ...
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1answer
75 views

After converting after-tax 401(k) into Roth IRA, can the 401(k) contributions be withdrawn from the IRA without penalties?

https://www.investopedia.com/articles/personal-finance/063015/roth-401k-vs-roth-ira-one-better.asp mentions this upside of Roth IRA regarding pre-retirement withdrawals: A final advantage is greater ...
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1answer
53 views

Error in 401K rollover to new platform. Same employer

My Company changed their 401K platform due to a partner split. Prior to this change I took out my portion and rolled it into an IRA. Two months later when they rolled all other employees amounts over ...
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5answers
1k views

Who owns the stock in a 401(k)?

I have a 401(k) through company X managed by investment firm Y. I give money to X, who give money to Y, who purchase some stocks. Who do those stocks belong to? Do they belong to I, and are managed ...
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1answer
49 views

If we can go to Europe, Northern Europe, Asia, to establish a corporation and invest in US stocks, then it is like IRA or 401(k)?

Because there are limitations of IRA and 401(k), such as $7000 or some people use somewhat complicated backdoor to do it "legally" have a higher amount, but also subject to penalties if the ...
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2answers
64 views

What incentives are there to move IRA money into a 401k?

I have both a traditional 401k with my employer and a traditional IRA I opened a few years ago. I opened the IRA since I didn't yet realize you could submit after-tax dollars to a 401k. Is there an ...
2
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0answers
50 views

401K Vesting Changed After Leaving Company

I left a prior employer back in 2012, but I made the mistake of leaving my 401K in the company plan, which is administered by T. Rowe Price. At the time I left, the balance showed I was 100% vested in ...
3
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0answers
87 views

Shutdown my Solo 401(K) plan and form 5310

I recently shutdown my Solo 401(K) plan at E*Trade. I plan to file form 5500EZ. I have distributed the money to a traditional IRA and a Roth IRA. None of the money went into another 401(K) plan. Do I ...
2
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2answers
55 views

Can I swap personal and 401k assets?

Is it possible to swap assets between personal accounts and retirement accounts? Say I have $100 worth of one fund in my 401k, and I think that fund is better as a short-term investment, and I also ...
1
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1answer
44 views

Do I have to invest my Solo 401k contributions to take advantage of tax deferral

Is simply contributing to my solo 401k account and keeping it in cash balance enough to take advantage of tax deferral, or do the funds need to be invested?
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1answer
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TIAA-CREF mailed me check — how do I roll this over into a Vanguard IRA?

I had $500 sitting in a TIAA-CREF account from over a decade ago. They liquidated all their older assets under $5K and mailed me a check for $400, deducting 20% for federal income tax. Can I roll this ...
5
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1answer
84 views

Can I use a gap year to convert traditional 401k money into a roth IRA to virtually avoid taxes?

My employer offers a 401(k) plan. I decide to leave the company to take a year off. During this year, I make no income. Using various types of tax deductions (mortgage interest, tuition, etc...), is ...
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1answer
96 views

I am on W2 making >$200K with a company the doesn't offer a 401K. What are my retirement contribution / tax reducing options?

I am an hourly employee on W2 making >$200K with a company the doesn't offer a 401K. I have been self employed in the past and have a Solo 401k as well as Traditional. For taxes I file jointly ...
12
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1answer
2k views

Do I endorse a direct rollover check?

I had a 401(k) from a previous employer at Fidelity. For some reason they won't send funds directly to another institution so they sent the check to me but made payable to ETrade FBO (My Name) Do I ...
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6answers
134 views

Should I reduce my 401k contribution to pay of car/house payments earlier?

It’s a little more complicated than the question (at least I think so). Basic Info: I’m 36 I have about $398K in 401k+Roth savings, 15% contribution per paycheck I have a mortgage worth $175K I have ...
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1answer
50 views

Pretax 401k and Roth 401k- additional take home pay not factored in, is it?

All the arguments in favour putting money in the Roth 401K emphasise that the withdrawals are tax free. So if you compare putting the same amount of money during your working career in a trad 401K vs ...
4
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1answer
751 views

Required Minimum Distribution Tax Rates

As I understand it, if one sells Apple Stock in a 401K and takes the cash proceeds as RMD, then it is taxed as ordinary income and not capital gains. If instead the stock was not sold and taken out of ...
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3answers
201 views

Was 50k loan limit always a part of the 401k program and are there any ways around it?

I got a loan from my 401k that I repaid a while back and I don't remember anything about a $50k limit. Now I am buying a new house before I sell mine and the $50k limit seems to be ridiculous since ...
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2answers
68 views

Can I open a Traditional IRA if I have a 401(k) and a Roth IRA?

I have a Roth IRA that I made and a 401(k) account through my employer. I realized that I will be above the income limit to contribute to Roth IRA and saw that I could do a backdoor by putting money ...
2
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3answers
160 views

Should I invest in 401(k) or is it better to invest by yourself in stocks? Or do both?

I'm still learning about investing and want to know if I should invest in 401(k) or is it better to invest by yourself in stocks? Or do both? Can you pick your own stocks with 401(k)?
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3answers
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When is it 'ok' to borrow from a 401k to purchase a house?

What market conditions would tip the scales for you to make borrowing from your own 401k a 'good' idea? The self-loan would help to increase the down payment and reduce PMI. Financially there is a lot ...
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2answers
122 views

Are there penalties for cashing out retirement accounts after a divorce?

I have two retirement accounts that will both get split after my divorce that just got finalized. One is a Roth IRA, the other a 401(k) account. Is it possible to cash out money because of the divorce ...
2
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2answers
51 views

Rolling over pre-tax employer contributions into my Roth 401(k)

If I have set my 401(k) up such that my contributions go to my Roth 401(k), my employer's matching contributions are still made pre-tax and go to my "traditional" 401(k). Can I roll these ...
2
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1answer
89 views

Should I increase the 401K loan payments or increase my 401K contributions

I have paid off all my debts except my mortgage and I have a 401K loan. I have a 15 year mortgage at 3% interest. I was thinking of increasing my 401K loan payments or increase my 401k contributions. ...
6
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2answers
218 views

Can I tax-deduct income for Traditional IRA during the time I am not covered by new employer's 401(k)?

The IRS states that Traditional IRA tax-deduction eligibly includes Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan ...
1
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1answer
52 views

Is there a best time to rollover 401k from previous employer to current employer?

I am in the process of doing this. I was wondering if there is a best time? Like, if I rollover when the stocks are on a high. I talked to Fidelity and they told me it's tax free as both my previous ...
18
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6answers
9k views

Can a small family retire early with 1.2M + a part time job?

Given: Married couple age 40 with one child under 5 $800K combined 401k $400K combined savings/investments No debt 90K average yearly expenses, includes mortgage Is it possible to retire now with ...
4
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1answer
281 views

Should I request that my employer reduce my salary to fully max out my 401k?

Conventional personal finance wisdom often instructs one to make full use of tax-advantaged accounts before placing additional savings into other investments. I don't think this is bad advice in ...
4
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2answers
237 views

Intentionally paying tax on 401K excess contributions to take advantage of employer matching?

This is a little bit of a twist on another question that has been asked in this community. My wife started a new job in February, after which she had contributed about $2,000 through her previous ...
3
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2answers
156 views

Should I prioritize repaying my 401(k) loan over maxing out my 401k contributions?

I took out a $22,000 loan (over 7 years) against my 401(k) for the purchase of a new home. I currently owe $15,000 on that loan. While I make 401(k) contributions each paycheck, I am not making the ...
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0answers
24 views

Solo 401K with a Solo Roth 401K and MEGA Backdoor Roth

In 2020, I have worked as both a sole proprietor / individual contractor with no employees and as a W2 part-time employee. I am 41 yrs old (under 50) and will have multiple streams of income in 2020: ...
3
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3answers
321 views

Should I contribute to a 401k pre-tax or Roth after tax if I plan to work for a year and then go back to grad school?

I am completely new to investment for retirement, and just got my first job. My job offers a 401k pre-tax and a Roth after-tax. However I plan return to grad school after one year of working. Is it ...
11
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1answer
2k views

Moving a 401k balance to multiple FDIC-insured IRAs to protect my funds against being wiped out by a market crash?

My wife and I are living on our Social Security benefits. I've been very pleased with the growth of my Fidelity 401k in my former employer's retirement plan. As far as I know, I can leave my balance ...
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2answers
39 views

Principal 401k expense fees

I max out my IRA and HSA, so my next haven is my 401k which I also max out. However, the fees for the funds it offer seems absolutely crazy. In my IRA and HSA I don't have an ETF with an expense ratio ...
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0answers
21 views

Is there any downside to transferring 401k to a rollover IRA? [duplicate]

I have a 401k retirement savings account from a previous employer. I am considering transferring it to a rollover IRA, where it seems I would have access to a larger range of investment options. ...
1
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2answers
55 views

What is in a T. Rowe Price target date fund?

A target date fund is a great way to save for 401k retirement but what is the actual composition? I understand that they're split between bonds and stocks but how does somebody actually introspect the ...
3
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4answers
1k views

401(k) opt out Company matched funds allocated

Based on the current volatile climate unfavorably forecasting the future of brick and mortar retail stores facing continued lost revenue, the unprecedented growth of eCommerce, and to further damper ...
2
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1answer
72 views

Investment choices for 403(b) and 401(k): How to predict future performance?

My wife and I are in our 30s and live in the US. We have several retirement accounts, which include an old 401(k), her current 401(k), and my current 403(b). These 3 all allow us to choose our ...
0
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4answers
307 views

Is 401k matching unfair to lower-paid employees? [closed]

Let's say an employer matches "the first 4% of salary" an employee puts towards their 401k. Does that mean lower paid employees get less of a perk?
2
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2answers
82 views

401k direct rollover to existing IRA? [duplicate]

The instructions I'm looking at (on how to roll over a 401(k) to an IRA) say that I should open a new traditional IRA account. I have one that I've used for a rollover in the past (it was created to ...
9
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5answers
2k views

How does one get the 401(k) max contribution of 57K?

My understanding is that the max individual contribution for 2020 is $19,500. If employer match is 100%, that gets us to a total of $39,000. How does one max out the combined employer/employee ...
4
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1answer
111 views

CARES Act 401k withdrawal requirements - Is this a hardship?

From my understanding, financial hardships related to COVID-19 can qualify an individual to withdraw money from their 401k, with literally no penalty so long as it is repayed to a similar retirement ...
17
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5answers
8k views

My company is suspending its 401K match; what is the best thing to do with my money?

I am a 25 y/o US citizen working in the US for a US company. Given these days' hard times, my company has elected to suspend its 401k match. I make too much money to contribute to a Roth IRA. What is ...
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1answer
58 views

How can I tell if a target date fund has too many fees?

I've read that when investing in a target date fund (401k or IRA) there are often a lot more fees involved than other funds. These are an easy option though if you're not too sure what to invest in. ...
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2answers
63 views

Specifics on rolling over “late” 401k contributions

After I had to roll over my 401k recently, my former employer made 2 more small contributions to it for some reason so those checks have been mailed and made payable to me (minus the 20% withholding). ...
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3answers
168 views

401(k) which is better, more traditional or less ROTH

My company matches my 401(k) contributions, 4% to my 5%, so I'm contributing at least 5%. So I ran some numbers. If I switch from traditional contributions of 5% to ROTH contributions of 5%, my take-...
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0answers
23 views

Employee and employer 401k contribution limits [duplicate]

From my understanding, in 2020, the maximum an employee can contribute to their 401k is $19,500. The total contribution limit for an employee and employer combined in 2020 is $57,000. Now I understand ...
3
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2answers
168 views

Are funds mixed between 401k and Roth 401k?

If your employer offers a 401k and Roth 401k plan, are these considered two separate accounts? If I want to contribute the maximum funds allowed for 2020 ($19,500) equally between both, does that mean ...
0
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2answers
126 views

Employee provided 401k account has very limited options. Is there a way I can move to a better account?

My employer-provided 401k has very limited investment options. Mostly I see two options: (1) They have several target-date funds like this: LifePath® Index 2040 Non-Lendable Fund M which supposedly ...
3
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0answers
102 views

Withdrawing from after tax 401k rollovers to Roth IRA

I have after tax contribution. I have setup Roth in plan conversation. If I rollover that money to a Roth IRA, which I can do since it is after-tax money. Do I have to wait for 5 years to withdraw my ...

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