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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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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 ...
ErikE's user avatar
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401k strategy for non-resident Indian planning to return to india

Scenario is for L/H visa holder who is earning salary in USD. The person also has employee sponsored 401k plan. The visa expires in 5 years and person would like to return at that time to India ...
Anirudh Goel's user avatar
3 votes
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53 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,...
selfLearning96's user avatar
3 votes
0 answers
219 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 ...
davidbak's user avatar
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401K withdrawal while leaving the country

I see this question has been asked before but it seems not from this angle. I'm leaving the country soon and I will not be able to continue contributing to 401K here. While some may argue that it is ...
Lucas's user avatar
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3 votes
0 answers
206 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 ...
Bob's user avatar
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3 votes
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122 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 ...
Aravind T's user avatar
3 votes
0 answers
106 views

HCE Excess Refund on 401k Plan

This year, I received a letter from the company I worked for notifying me that they did not pass the 401k non discrimination test. As a highly-compensated employee, I received an excess refund check ...
user87652's user avatar
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219 views

Should a Canadian working in the USA, invest in a 401k, Roth IRA, Traditional IRA, and/or RRSP?

I have a cousin who is a Canadian citizen working in the USA, asking me about the Canadian RRSP. However being an American I am more familiar with 401k, Roth IRA, and Traditional IRA. 1) From ...
akyeung's user avatar
  • 153
3 votes
1 answer
191 views

How do I control how dividends are reinvested in my 401(k)?

I have a 401(k) through Ascensus. I would like to do tax loss harvesting with an index fund I hold in my taxable account and I want to make sure there is no possible wash sale in my 401(k). Therefore, ...
Craig W's user avatar
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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 ...
Abdullah Rahman's user avatar
2 votes
0 answers
57 views

Income taxes - Changing state of residence before moving out of the US

I'm an European citizen working for in the US with a 2 year contract; I was and will be a non resident alien for 2020 and 2021, but RA in 2022; I have to contribute to a retirement fund (it's a 401(a),...
Alberto Chiusole's user avatar
2 votes
0 answers
81 views

Utah state tax for 401K income of a part-time resident

We have about $48,000 Social Security income annually and will receive about $36,000 401K income by the end of next year. We will stay in Utah for the first 3 months next spring and then move to ...
D. L.'s user avatar
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2 votes
0 answers
69 views

What to do if company is not honoring vesting schedule in Pension Protection Act?

Let's say someone works for a company that lets employees contribute to a 401k, and the employer offers a match. Based on my read of the 2006 Pension Protection Act (beginning on p. 2 of the linked ...
Bort's user avatar
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85 views

correcting a W-2 showing 401k contribution as taxable

My employer made a profit-sharing contribution into my 401k, and they are including it in my taxable income. 1) Is this contribution taxable? I think it is not taxable. The IRS says: "Your employer'...
Matt F.'s user avatar
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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, ...
Franck Dernoncourt's user avatar
2 votes
0 answers
181 views

Reporting of form 1042-S

I am a US citizen living in Australia, 61 and made a small withdrawal from my 401K which they deducted 30% for tax. I received a 1042-S form from my 401k company for a withdrawal I made. DO I file ...
wayne b's user avatar
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2 votes
0 answers
159 views

20% pass through deduction + ~20% solo 401k deduction?

From what I hear none of the 401k stuff has been modified in the new tax bill This means SOLO 401ks would still have like 20+% profit contribution maxes, up to the $53k or so upper limit from entity ...
CQM's user avatar
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2 votes
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194 views

Using the rule of 55

If I wanted to withdraw $50k out of my 401(k) using the rule of 55, How much more will I have to pay to get that amount. Will I have to pay the 20% federal tax and the 10% early withdrawal penalty and ...
user61375's user avatar
2 votes
0 answers
42 views

Can S-corp have foreign national employee located overseas and give them a 401k?

I have two contractors located overseas. They are not US citizens. I have been paying them per job but want to make them permanent employees with some of those benefits such as access to a matched 401(...
Entre Preneur's user avatar
2 votes
0 answers
84 views

Make a SEP contribution to a traditional IRA

I have a traditional IRA with Vanguard that originated as a 401k rollover (so they call it a Rollover IRA). This year I have a lot of self-employment income, and I am qualified to make a SEP IRA ...
J T's user avatar
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1 vote
0 answers
361 views

Is this a viable strategy for avoiding the pro-rata rule for backdoor Roth while maintaining the superior investment options in my non-Roth IRA?

Assume that my 401(k) supports both reverse rollover from IRA and in-service rollover to an IRA. I am doing a backdoor Roth, and want to avoid the pro-rata rule. The general way to do this is to ...
asgallant's user avatar
  • 230
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122 views

Consolidating Multiple Solo 401k Plans into One

My spouse and I have separate solo 401k plans (let’s call them Plan A and Plan B), which we opened a few years ago when we undertook self-employed activities. This year, we opened an LLC as QJV and ...
illuminato's user avatar
1 vote
0 answers
38 views

Which field of W2 is compared with 130k threshold for NHCE/HCE classification?

I understand that many companies use the 125k/130k/etc fixed threshold for classification of NHCE/HCE employees (whereas others use the 20% rule), which field of W2 is used to determine this? For ...
cnst's user avatar
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1 vote
0 answers
61 views

401k refund if an HCE front-loads 19.5k, leaves on March 1, and the ADP test fails?

Let's say it's your third calendar year working for a company with no vested employer match; you're classified as HCE. You make a mistake of front-loading 90% of your income in the first two months, ...
cnst's user avatar
  • 495
1 vote
0 answers
82 views

Can there be different After-Tax contribution limits for HCE and NHCE in a Mega Backdoor Roth 401k?

Is it possible in a 401k plan with Mega Backdoor Roth to have different After-Tax contribution amount limits for each employee depending on whether they're part of the HCE or NHCE group? For example, ...
cnst's user avatar
  • 495
1 vote
0 answers
89 views

401k or Roth IRA for non treaty countries

This might be a bit complicated, so pretty please bear with me a little. I am currently living in USA on a E2 visa. My employer offers both 401k and Roth IRA. I do not plan to neither retire nor ...
Eugene's user avatar
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1 vote
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20 views

What will the following year tax burden be on partial repay of an premature 401K withdrawal?

What will the following year tax burden be on partial repay of an premature 401K withdrawal? I quit my job. I have a 401K from the previous employer -- and took out a partial money due to COVID ...
Paul's user avatar
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1 vote
0 answers
89 views

Withdraw after-tax contributions from 401k without penalty

In my most recent payroll (which included bonuses), I messed up my contribution % for pre-tax and after-tax 401k. I ended up with $10k in pre-tax and $44k in after-tax (+4k in employer matches), when ...
contributed too much's user avatar
1 vote
0 answers
45 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: ...
kp123's user avatar
  • 111
1 vote
0 answers
48 views

From unemployed to self-employed/freelancer, how is my 401K & IRA setup?

Recently lost my job and decided to try out the freelancer route. I am in my early 40s and I expect to make about $150k before tax. I have a few questions about setting up a my 401k and IRA. Already ...
Important_Apricot_28's user avatar
1 vote
1 answer
468 views

Retirement benefits vs. better salary/health insurance

I'm a research scientist and postdoctoral fellow in a US government lab. Currently, my position is funded through a DOE-run organization as an educational/training position. The salary is good for my ...
MikeyC's user avatar
  • 232
1 vote
0 answers
31 views

Excess 401k deferral: which account?

I switched jobs in the middle of 2019 and hence have multiple pretax 401k accounts (traditional). I have excessive deferral when I combine my contributions to both accounts (14k to each account) and I ...
Avgworker's user avatar
1 vote
0 answers
45 views

convert 401k after tax contribution to roth 401k

My company recently introduced a Roth 401K option to the traditional 401k retirement account. I have some existing after-tax contributions (~ $80,000 or so). If I convert this to a Roth 401K, my ...
John John's user avatar
1 vote
0 answers
220 views

Transfer from US 401k fund to Australian Superannuation fund

I worked in the USA for a number of years and have now relocated to Australia. I have balances in both US 401k fund (+ IRAs) and Australian superannuation fund. It seems that the Australian ...
Kirk Broadhurst's user avatar
1 vote
0 answers
185 views

What recourse do I have if I was auto-enrolled into an employer's 401k plan despite opting out?

I started my new job on April 1, 2019 and at the first meeting with my manager I asked my new manager how I could dis-enroll or un-enroll from the 401K plan rather than be auto-enrolled @ 4%. He didn'...
HowardP's user avatar
  • 21
1 vote
0 answers
621 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. (...
Charles Thomas's user avatar
1 vote
0 answers
48 views

Working in the USA moving back to Canada

I am a Canadian currently working in the US for a company that offers a 401K. If I move back to Canada let's say half way through the year, is my 401K contribution limit prorated from $18500 to $9250? ...
user141998's user avatar
1 vote
0 answers
78 views

How do I learn about the retirement benefits arrangements when moving to the US?

I live in the Netherlands and before that I live in Israel/Palestine. I have a pretty good knowledge of the retirement(+severance) benefits system back home, and a mediocre knowledge of how it works ...
einpoklum's user avatar
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1 vote
0 answers
87 views

How to avoid fees on 401k account when employer owes funds

My previous employer did not deposit 401k funds that were taken out of my paycheck over a 5 month period. I have left the company and I am fighting at get that money paid, with the help of the EBSA. ...
user39056's user avatar
1 vote
1 answer
150 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 ...
arcyqwerty's user avatar
  • 1,271
1 vote
1 answer
225 views

Do I need to fill state taxes from Puerto Rico for a forfeited 401(k)?

Around August last year, one of my 401(k) plans that I had with a previous employer was forfeited, and I received a check in the mail with the balance. I decided just to go and deposit the check on my ...
scubaFun's user avatar
  • 875
1 vote
1 answer
67 views

Single employer 401k excess contribution

I maxed out my pre-tax 401(k) earlier this year. I had already used up my entire employer match, so the remaining money flowing into the account was after-tax. When I looked at my most recent ...
extramuros's user avatar
0 votes
1 answer
83 views

401K Rollover Tax Question

I recently rolled over my employee 401k to an IRA at a different financial institution. In that 401k, I had made both taxable and nontaxable contributions. Since retiring, I’ve been receiving required ...
Kalliekaykat 's user avatar
0 votes
0 answers
71 views

What is my best option to reduce Tax Liability on an unpaid 401K Loan from a previous employer?

I lost my job in June 2023 and I had 2 outstanding 401K loans. Unfortunately I could not secure a job until 2 months later and had to use severance to pay bills instead of paying these loans back. ...
Vince D.'s user avatar
0 votes
1 answer
80 views

Excess deferrals to after-tax, non-Roth 401k (just happened this paycheck) – just ask the plan for a reversal? Tax implications? MBDR implications?

It’s hard to google this/find this specific situation for advice. My last paycheck deferral on to my 401k (on 12/8/2023) resulted in exceeding the yearly maximum employer + employee = $66K limit. (2 ...
dbugg's user avatar
  • 1
0 votes
0 answers
129 views

401k benefits meaning: 10% of salary deferral subject to first 0.6% of compensation as elective contribution

From the benefits package of a prospective employer: CompanyX contribution: 10% of salary deferral subject to first 0.6% of compensation as elective contribution What does this mean?
The Gilbert Arenas Dagger's user avatar
0 votes
0 answers
184 views

Am I on the right track? Feedback welcome!

Here's my situation: 43 y/o, married w/ two kids under 10. I'm in a defined benefit program and I have a formula where I can retire at 60 with 2% of my highest salary times the number of service ...
jayinla's user avatar
0 votes
0 answers
238 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....
Franck Dernoncourt's user avatar
0 votes
0 answers
150 views

401k plan employee rights?

Is it legal for my employer to know what I'm doing with my money that is in the 401k, that comes from my employer, without my consent? Is the financial services company that manages my 401k permitted ...
webb's user avatar
  • 1