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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2answers
521 views

What is a 401k plan in some contracting agency that is 0% to 100% contribution and limited to 25 funds?

I have worked as a software contractor before, for a company and they didn't have 401(k) plan at all. And then I have worked at a different company, with something like, we can contribute, and for the ...
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2answers
156 views

At what age can I withdraw from my 401k

I am 61 years old and I don't want to withdraw money from my 401k too soon. I am wondering at what age can I take money from the 401K without being subject to penalty? Thanks
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1answer
46 views

If I don't plan to sell the stock until age 60 or 65 in USA, is it exactly the same in a regular account vs an IRA or 401k account?

With the limitations of how much money we can put in IRA, Roth IRA, or 401(k) account, I just thought, what if we plan to buy the stock and know we won't sell it until age 60 or 65, when our income ...
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0answers
42 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 ...
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3answers
106 views

Optimizing Savings Allocations

I am currently trying to decide the best way to allocate my savings, and I would appreciate your input. I am trying to budget roughly based on the idea of using 50% of my post tax income for ...
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3answers
79 views

Taxes on growth - Traditional vs Roth 401K

Let's say I can put $10K today in my 401K. Let's assume this investment theoretically grows to $100K by the time I retire. Putting aside income brackets for a moment, is it true that if my 401K ...
3
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1answer
42 views

Are employee (NOT employer) contributions to a 401(k) ERISA-protected?

Say you work for a business that offers 401(k) plan. Investopedia says: Under the Employment Retirement Income Security Act of 1974 (ERISA), the funds in your 401(k) only legally belong to you once ...
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2answers
117 views

Taking out a 401K Loan vs. Liquidating Investments - what's better?

Let's assume the following: I need $50K for various expenditures (aka simply spending, not paying off CC debt or putting the money somewhere else). I can either liquidate regular taxable investments ...
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0answers
44 views

IRA contributions income limit [duplicate]

I never calculated my MAGI, but I don't have any student loans, educational expenses or anything like that for that matter. I just claim standard deduction every year. My net income this year is going ...
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1answer
120 views

How does 401k loan default after you left your job?

I'm trying to find some basic answers here but having a very hard time. I have a job currently and I'm about to lose it. I have pulled out a 401k loan and paying it back through the payroll deduction. ...
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4answers
885 views

How should I split my contributions to Roth IRA and Roth 401k?

I am in my early 20s and currently contribute ~18% of my income to my retirement accounts, 7% to company sponsored Roth 401(k) (Popular Investment Company) and 11% into my Roth IRA (A "Big 3"...
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4answers
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If I sold some stock by mistake and immediately bought it back, is that sale still subject to capital gain tax in USA?

Today I wanted to buy a few shares of Apple (AAPL), let's say 10 shares. When I handled the UI, there was the "By number of shares" and "By dollar amount" and then "Market&...
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1answer
36 views

Rolling over funds from a traditional IRA into an Individual 401(k) to avoid the pro-rata rule

I expect that in 2022, my income will exceed the deduction limits for a traditional IRA, so any contributions I make to it will be non-deductible. My understanding is that once I make a non-deductible ...
2
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1answer
40 views

Are 401k and IRA contributions reduced for new, part-year, US residents?

Suppose I move to the US partway through the year and start working. I will file a dual-status tax return. My employer offers a 401k plan and I want to contribute as much as I am permitted. I ...
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2answers
97 views

Is 401(k) plan without any matching like an IRA?

I might take a software contracting job, and the agency has a 401(k) plan, but just 0% matching. But it seems a little bit weird: what does it mean, is it a way for us to put more money in than an IRA ...
2
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1answer
72 views

Backdoor Roth vs Mega backdoor Roth contributions

I heard about Backdoor Roth IRA, and Mega backdoor Roth contributions. Are they one and the same? Or are they different? I ask because I know some folks who work for a big tech company in the US that ...
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2answers
68 views

Old company 401k was going to move to rollover ira but fidelity delaying me

I have done a lot of research on my old 401k. I do not want to withdraw any of it. I do not want to move it to my roth ira as I would owe taxes on it. I also do not want to move it to my new employers ...
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1answer
29 views

Overpayment at time of 401k withdrawal, during 2020

If, during 2020, one did an early withdrawal funds from a 401(k) and/or IRA, and one elected for extra withholding (above its final tax rate), when would that get returned? Is it handled with the tax ...
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0answers
36 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),...
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5answers
3k views

With tax-free earnings, isn't Roth 401(k) almost always better than 401(k) pre-tax for a young person? [duplicate]

I can start withdrawing from my 401(k) in 30 years. I'm currently in one of the the highest federal tax brackets and will likely be in the lowest tax brackets when I start withdrawing. That alone ...
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2answers
4k views

Could my employer match contribution have caused me to have an excess 401K contribution?

Could my employer's match have caused me to have an excess 401K contribution? For 2020, I contributed the maximum into my 401k-Roth, $19,500. I also made a catch-up contribution (I'm eligible) to my ...
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0answers
14 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 ...
2
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1answer
72 views

Can 401k beneficiaries be structured to pass through to children?

When you name multiple primary beneficiaries of a 401k, the assets can be divided proportionally among the beneficiaries, but the contingent beneficiaries don't kick in unless all primary ...
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1answer
35 views

How to determine state tax for 401(k) distribution as a part-year resident?

I'm trying to help my in-laws with their taxes and I just want to make sure about something before filing. They bought a home in Texas (no state tax) in the middle of 2020, still maintaining residency ...
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2answers
98 views

Paying Taxes on a Bonus Check

In this article, "How to Avoid Paying Taxes on a Bonus Check" it suggests the following: Strategies to manage the taxes you’ll have to pay on a bonus fall into two camps. First, you can ...
3
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1answer
617 views

Why is my former employer matching dividends in my 401k?

Here's a screenshot from the recent transaction history (this December) from the 401k from an employer that I haven't been employed by for many years. The index fund in question pays out a dividend ...
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2answers
1k views

Why are excess HSA/IRA/401k/etc contributions allowed?

I accidentally made an excess contribution to my HSA (or my employer or HSA custodian made a mistake, it's still not clear). I know what I need to do to correct it, but I'm curious, why is that ...
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1answer
35 views

Computed 401K RoR differs from broker's information

I have a 401k through Fidelity and have recently started being more active in the market. I was haphazardly selecting funds that seemed to do well but apparently wasn't the most advantageous due to ...
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0answers
70 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 ...
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3answers
884 views

Do Traditional 401(k), FSA, and HSA contributions reduce your tax liability even if you don't itemize?

I hope people will indulge me what may be a rather dumb question. If you take the standard deduction/don't itemize, does contributing to a Traditional 401(k), Health Savings Account, or flex medical ...
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0answers
37 views

What is the point of a retirement plan contribution limits (with after tax dollars)? [duplicate]

Based on the 2021 numbers: 401(k) elective deferrals are limited to 19,500. Limits here make sense as savings offer obvious advantages: pre-tax contributions in case of regular 401(k); non-taxed ...
2
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1answer
40 views

Paying taxes on a converted old retirement account to a Roth IRA from a 401K loan from current employer?

I have an old 403B plan, I am 47 years old and would like to convert part of it to a Roth. I would like to convert $100k to the Roth, but will then have to pay taxes on the conversion. Lets just say ...
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3answers
155 views

Is there any upside to contributing to the after-tax 401(k) instead of the Roth 401(k) via paycheck deduction?

In some 401(k) plans, one has the choice to configure one's paycheck deductions to go to pretax 401(k), after-tax 401(k) and Roth 401(k): Is there any upside to contributing to the after-tax 401(k) ...
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0answers
32 views

401k withdraw penalty free? [duplicate]

Can I withdraw 90% of my 401k funds (I'm under 59 years of age) under the new stimulus bill that was signed in December 2020? Even though the CARES act expired, according to this article https://www....
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1answer
46 views

Where can one view the split between pretax, after-tax and Roth money in one's Vanguard 401(k) account?

The best I could find is https://retirementplans.vanguard.com -> Retirement plan participants -> Manage my money -> Manage my brokerage option, which gives the split between Roth money and ...
2
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3answers
90 views

Can I rollover Roth/Traditional 401k into a Roth IRA?

My previous employer offered both a Roth and a Traditional 401k (unclear to me if these are technically separate accounts... as far as I was functionally aware, I had one 401k account, which could ...
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3answers
138 views

What might contribute to income during retirement?

I am reading about the differences between Roth and traditional 401k. The big deciding factor seems to be relative tax % between now and retirement. An example from this article: Imagine Sally and ...
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3answers
53 views

Are large and frequent moves via rebalancing within a 401k, without cost or penalty?

Example scenario: 300k vested in companies 401k Company provides 10 funds, from low to high risk Each fund has extensive details, that can be used to relate to current market volatility. Company ...
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1answer
54 views

If one makes some short-term capital gain within one's pretax 401(k), does it make any financial difference compared to making long-term capital gain?

If one makes some short-term capital gains/losses within one's pretax 401(k), can this make any financial difference now or anytime in the future compared to making long-term capital gains/losses?
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3answers
103 views

Should I rollover my Fidelity 401(k) to a Vanguard IRA?

I'm leaving a job where I have a Fidelity 401(k). I plan to rollover my Fidelity 401(k) into an IRA after I leave the job. I like Fidelity. But most of my portfolio is invested in Vanguard ETFs, and I ...
4
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6answers
462 views

Is 50K Salary Jump Worth No 401K Benefit

I currently make $75K and my employer offers a 3% match on my 401K. I have now been offered an exceptional job making $120K but there is no retirement plan offered. In CA by 2022 all employers will ...
3
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0answers
58 views

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 ...
2
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1answer
79 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 ...
4
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1answer
92 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
56 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
53 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
67 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
54 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 ...
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0answers
93 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 ...

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