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
89 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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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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3answers
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Could a 401k or IRA contribution switch my current taxable income to a lower tax bracket? Is this the same for traditional and Roth 401k?

In the case that your annual income is right in the limit between one tax bracket and the next tax bracket, can contributing to a 401k or IRA reduce your present income declaration in such a way that ...
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2answers
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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 ...
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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 ...
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10answers
7k views

Does the “15% into retirement” rule include employer contributions?

I keep seeing that you should be putting 15% of your income (link2, link3) into a retirement account. Does that include the employer match? For instance, if my employer has a 4% match, do I still put ...
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1answer
100 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
108 views

Last year I left excess 401k contributions in the account. Do I need to do anything this year?

In tax year 2018 I over-contributed to my 401k due to job change. Although I discovered the problem before the tax return filing deadline, the bank refused to return the excess funds. I've consulted a ...
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1answer
98 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 ...
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1answer
3k 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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1answer
145 views

Can a previous employer contribute to my closed 401k after termination

I was terminated in late January of 2020 by my previous employer. I had worked for them for 5 years and 2 months. I had over 5k in my 401k account and withdrew it all a couple days after termination (...
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6answers
138 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
63 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 ...
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1answer
755 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
209 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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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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2answers
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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 ...
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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 ...
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3answers
3k views

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
80 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 ...
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1answer
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Can excess 401K contributions returned with 1099-R be rolled over to a Traditional IRA?

I received a check in March 2011 along with a 2011 1099-R for excess 401K contribution made in Tax year 2010. I am a high-compensated employee, the excess was due to company 401(k) matching which was ...
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1answer
91 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. ...
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2answers
219 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 ...
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1answer
53 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 ...
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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 ...
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2answers
305 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 ...
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2answers
158 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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3answers
956 views

Can't withdraw from 401k because plan trustee can't be found

My previous employer (startup in Silicon Valley) was acquired by a foreign company about 2 years ago, and the parent company laid off pretty much everyone about 1 year ago, which I was a part of. I ...
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1answer
495 views

Missing 401(k) dividends

I have a 401(k) with a gigantic, global, US-based company. The funds available to me include a variety of non-tickered funds — meaning that there's no symbol I can independently research — such as ...
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0answers
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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: ...
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3answers
753 views

Why would an employer prevent their employees from investing in the employer's stock through the employer-sponsored 401(k) account?

Why would an employer prevent their employees from investing in the employer's stock through the employer-sponsored 401(k) account? I saw that restriction when reading the "Vanguard Brokerage Option (...
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3answers
324 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 ...
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3answers
1k views

Father retired a little early doesn't need 401k but should he move it to Roth IRA?

My father recently retired at 63. He has some money in his 401k (the provider is ADP) and they keep emailing him with an advertisement telling him the ramifications of withdrawing any money out early ...
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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
156 views

When is a 401(k) better than a pension?

There are tons of comparisons between 401(k) and pensions, with the most obvious being the concept of "defined contribution" vs. "defined benefit". This makes them a sort of apples to oranges ...
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2answers
49 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
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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. ...
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2answers
166 views

Can an ill-advised 401k withdrawal be undone?

A friend of mine purchased a home last year after renting for a while. She is approximately 60 years of age. When considering how to finance the purchase, she considered two options: Taking out a ...
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2answers
56 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 ...
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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 ...
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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 ...
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1answer
463 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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8answers
11k views

The “Cares act” allows $100,000 of 401k withdrawal without penalty. What are the reasons not to do this?

From this website , we can pull out $100,000 from our 401k without penalty. Distributions taken from qualified retirement plans received during 2020 of up to $100,000 for COVID-19 related ...
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4answers
325 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?
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2answers
84 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 ...
10
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2answers
3k views

Does cashing out 401k interfere in unemployment

If I cash in my 401k do I have to log that as earned income on my weekly unemployment filing in Arizona. I had no choice since $160 per week does not pay my bills. I used it to pay off my car and a ...
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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 ...
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1answer
136 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 ...
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3answers
1k views

Rollover IRA vs traditional IRA (can I make contributions to the rollover IRA?)

I am single and used to contribute to a Roth IRA (my last contribution was years ago), but now my AGI is over the limit to contribute to the Roth. I have a "rollover IRA" that I opened a few years ...

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