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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0answers
526 views

What are the appropriate forms to file when using a mega-backdoor?

For the backdoor (IRA -> Roth IRA, generally up to $5500 per year) conversion, we need to file Form 8606. Are there any equivalent forms that must be filed for mega-backdoor (After-tax 401k -> Roth ...
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135 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 ...
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0answers
64 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 ...
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144 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 ...
3
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1answer
378 views

401k Excess Contribution Refund - Notification

If my employer is required to return excess 401k pretax contributions due to not meeting the discrimination test, are they required to notify me BEFORE making the refund or selling funds/stock in my ...
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57 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 ...
2
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0answers
63 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'...
2
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54 views

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, ...
2
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0answers
111 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 ...
2
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151 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 ...
2
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0answers
188 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 ...
2
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0answers
40 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(...
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62 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 ...
2
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757 views

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 ...
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57 views

Double entry process for 401k account exchange

I'm entering journal entries for hledger for a 401k account and have questions about how it should work when an account goes through an exchange (I'm not sure what it is exactly; I guess the finance ...
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155 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'...
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300 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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37 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? ...
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0answers
111 views

Best use for after-tax dollars if you've already maxed your Roth IRA?

Recent market volatility has me fretting about my taxable account. I figure if I lock up my funds in some tax-efficient vehicle, then I won't even think about it, similar to my 401(k). I'm wondering ...
1
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1answer
1k views

W8BEN of Indian individual

I need help in filling W8BEN form. I will use this to reduce (or zero) my 401K withholding (whenever I withdraw money) as there is a treaty between India & US. I am not sure what should I fill in ...
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74 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 ...
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85 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. ...
1
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1answer
169 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 ...
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170 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 ...
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59 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....
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144 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 ...
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0answers
86 views

Setting up a tax deferring IRA

I work for a small company, so we have like no resources for helping us understanding benefits. My employer is willing to automatically give me 5% of my annual salary if I set up an IRA account. So ...
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419 views

Self employed 401k and traditional IRA

I've got a self-employed 401k that I use for a small side business, which supplements a full time income I also receive. The 401k contribution allowance is usually small because my business income is ...
0
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1answer
184 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 ...