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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35 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 ...
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What are the pros and cons of converting an after-tax 401(k) to a Roth 401(k)?

What are the pros and cons of converting an after-tax (a.k.a. post-tax) 401(k) to a Roth 401(k)? From what I can see: pro: in the Roth 401(k), earnings made on the contributions are tax-free, unlike ...
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1answer
202 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 ...
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Those retiring early - what other steps can I take to ensure retirement at 50?

I want to retire early (am 40 - want to retire by 50). For those who have done it in and around that time (without inheriting a ton of money from someone) what steps or things can I do to help make ...
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1answer
125 views

401k's from the employers side

Let's say you, as an employee, have $5,000 in 0% vested funds in a 401k. You don't get the money when you leave but what does happen to that money? Does that money get redistributed out to other 401k ...
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1answer
65 views

Can't see Balance in 401k account [closed]

I put about $400 into a 401k account, but the balance still says $0. Likewise, the vested balance is also $0. Why is this?
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1answer
224 views

Can you un-enroll from 401k at any time?

Can you un-enroll from 401k at any time? Or is it like health insurance where you are locked into it until open enrollment periods?
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77 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?
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1answer
209 views

How much should you put in a 401k plan?

I am making ~$145,000 per year and was wondering if it is wise to contribute 12% pre-tax to my 401k? Is this too much? Is there any disadvantage in contributing nothing? I am already well off (come ...
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1answer
42 views

Stock Reclassification to ESOP in 401k

In my current 401k, there are periodic conversions (looks like the beginning of each year) of the classification of company stock to ESOP shares. There is no change in quantity of traded shares and ...
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2answers
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What are the laws or rules on 401(k) loans and switching providers?

So here's the situation. My employer is switching 401(k) providers. I believe they outsource payroll and employee benefits to Benefits Company A. They want to switch to Benefits Company B. I ...
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2answers
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401k Match percentage - Does it include bonuses?

I'm the owner of a small business with one employee other than myself, and I'm looking at 401k plans for the business. A significant amount of this employees total compensation will end up coming ...
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1answer
174 views

Does purchasing a second home qualify for 401K hardship withdrawal?

I just asked Vanguard and they checked my withdrawal availability: Either Hardship withdrawal may only be taken for the following purposes: Purchase of a primary residence. Prevention ...
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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 ...
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1answer
95 views

Does an in-service rollover of a Roth 401(k) to an existing 15 year old Roth IRA incur any tax?

I have a Roth 401(k) and want to roll it over into my existing 15 year old Roth IRA while still employed. Vanguard is the fiduciary for both. Is any part of this rollover considered taxable? I am ...
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1answer
68 views

Can you roll a traditional IRA into a 401k and do a Backdoor Roth IRA same year?

The following is a situation a few of my friends are in: Significant assets in traditional IRA Income above Roth IRA limits Their 401k plan allows you to roll regular IRAs into it Now, the prorata ...
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Do employers receive any financial benefit from offering a RRSP/401K matching program? [duplicate]

I understand that companies that offer RRSP matching programs may be more attractive to work for/have better employee retention, and the employers may get warm fuzzies from offering it to their ...
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1answer
130 views

How should I distribute investment types between differently-taxed accounts?

Background: I'm 37 and work in the U.S. I have a gross income ~100k, a 401k funded to the legal limit, a Roth IRA funded to the legal limit, and a regular investment account. The 401k has most of the ...
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3answers
259 views

Best Way to minimize taxes on 401K distribution?

I recently retired at 57 after 36 years with the same employer. I live pretty frugally and my pension is $90K covers all my normal living expenses. I have approximately $2M in retirement savings most ...
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0answers
68 views

Return of excess employer contribution after transfer to IRA

A few years ago, I had an internship, and had to set up an account with the employer's retirement fund company. A couple of years after leaving the company, I was closing out old accounts, and ...
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2answers
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100% employee contribution to 401K, how to handle employee paid social security and medicare?

An employee earns $12,000 a year and wants to defer $12,000 as an employee contribution to 401K: Does the employee need to pay employer the employee portion of social security and medicare? Can ...
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1answer
199 views

Year of 401k contribution for last paycheck?

I am getting my next paycheck on Jan 2nd, 2020. The paycheck covers work performed in 2019. Will the paycheck go towards my 2019 or 2020 401K contribution limit?
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134 views

Salary deduction to contribute more to a 401K through the employer's match

If an employer is allowed to contribute up to 38K (57K-19K) to your 401K through a match, why don't we have an option to deduct the extra 38K from our salary and count it as the employer match in ...
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1answer
4k views

Does 401k on H-1b visa make sense when there is an employer match?

I am on H-1b visa in the U.S. I will stay between 2 and 5 years here. My employer is (almost) matching my 401k contribution. I am wondering if it makes sense for me to participate in the 401k. I have ...
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1answer
62 views

What is the time window to deposit IRA account to handle this year tax benefit?

I don't have a 401K account, but am considering opening an IRA account to save some taxes. How long the time window is available for me to have the IRA account? Also in my understanding in the later ...
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1answer
116 views

My 401(K) plan and form 5500

I live in the United States and have a small unincorporated business. I have no employees and I am single. I have a 401(K) and a Roth 401(K) through E*Trade. Between the two accounts I have a little ...
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2answers
218 views

Conflicting advice about what to do with my 401k / Roth IRA

I left a company that I was at for over 18 years about a year ago. The company I was at was using Fidelity and I had then opened a Roth IRA under Fidelity as well. My Roth only has around 15k and my ...
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1answer
415 views

Buy Land Using Old 401K?

I have a 401K from a job I left ~7 months ago. I'm looking to buy some land and do construction on it. I need to put about $40K down on the land, but I only have ~$30K in savings. What's the best way ...
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1answer
55 views

Variable Annuity Vs Roth IRA Vs 401K. Pros & Cons of Investment Plans

I'm trying to understand the pros and cons of Variable Annuity products like Mass Mutual Transitions Select. I worked for a few employers for a short term like 1 to 2 years and had 401K with them. ...
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1answer
240 views

I plan to cash out my entire 401k within 2 years, should I maximize my contributions or should I minimize them and invest in money market/index funds?

I have a serious medical issue that makes collecting my 401k benefit a near impossibility. I have about 20k saved up in my 401k and we’ll call it $60k in the market mostly in index funds/ETFs. I ...
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2answers
118 views

Taxes on 401k withdrawal

I’m a bit confused why my dad had so much in fees withheld when he pulled some money out of his 401k. He is 67 and his 401k is through ADP. He wanted to withdraw 5k dollars. We did all the paper work ...
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1answer
69 views

401k rollovers - pros & cons question [duplicate]

I have some 401k money in a former employer plan. It is doing really well, I like their funds and their Financial Engines program. I hesitate to touch it. My new employer has a good plan. The way ...
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1answer
108 views

Can an employer change a 401k plan to make it worse without notice?

I have been at my current employer for three years as of March 2020. As per my 401k I am to be 100% vested at year three. Today, 11/24/19 I received notice that the vesting schedule has changed to ...
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5answers
4k views

Why 401k contribution as % of salary vs. fixed amount per pay check?

I am wondering why some companies do not let their employee choose a fix amount per pay check as a 401K contribution. In my all jobs it has been always a % of my salary, so I will chose a percentage ...
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2answers
275 views

Why 401K contribution as whole % rather than in quarter percent resolution [duplicate]

I asked another question, and there are reasons for employers to keep it in percentage of salary instead of fix dollar amount. But what is harm in making it a fraction of a percent, like permitting ...
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2answers
188 views

Should I contribute more to my 401(k) or IRA?

I am trying to figure out a reasonable strategy for my situation. I make over the limit to write off traditional IRA contributions on my taxes starting in 2020. I currently contribute 8% to my 401k. ...
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3answers
129 views

will company match on 401K if employee exceed the limit [duplicate]

Suppose an employee has a yearly salary of $100K and his/her company matches "50 percent match up to the first 6 percent", and the employee is contributing at a rate of 40%. The employee will reach ...
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4answers
13k views

Why should I invest so much in 401(k)?

I am 24 yrs old and am making $60,000/yr while saving ~41% of that. 28% of which is going to my Roth 401(k) and the rest is going into a TD Ameritrade and a small amount into a Robinhood account (both ...
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2answers
244 views

I left my job after a few months. I was not fully vested. Why is the non-vested amount still on my 401K plan?

I left my job after a few months. I was not fully vested. Why is the non-vested amount ($1000) still on my 401K plan? Why doesn't the employer just take the non-vested money away and put it in their ...
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1answer
165 views

Is $50k in business income enough to consider hiring a pension specialist?

I am currently a full time software developer, and have a side business done under my own LLC (S corp). For the sake of having concrete numbers, lets say I make $100,000 through my full time job, and ...
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5answers
336 views

Refinancing student loans in the context of an impending recession

I am a 23 year old, employed, Software Engineer working for a startup in an inexpensive city in the United States. I make $71k/year plus stock options that incrementally vest over 3 years. I have no ...
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6answers
2k views

Will an administrator exceed the 401K limit?

Suppose a person has a single job with $80K salary for the year and chooses 30% contribution to their 401K. The limit for 2020 contributions is 19.5K. Will the employer or the administrator stop ...
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4answers
2k views

Post Tax 401k or Taxable Brokerage Account?

I max out my pre-tax 401k, HSA, and do a roth IRA or backdoor Roth IRA. With my additional savings is there any reason i would want to do a post-tax 401k instead of keeping it in a regular taxable ...
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1answer
136 views

over contributed after-tax 401K

I have had two employers in 2019. Through both employers, I made around $18K pre-tax 401K contribution combined in 2019 (which is less than $19K limit). However, through employer match and after-tax ...
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1answer
635 views

Where can I find a Third Party Administrator for a self-directed solo 401K?

Following up from my question here, can anyone recommend a good Third Party Administrator (TPA) that can create/amend a non-prototype plan for a solo 401k for a flat fee? Either that, or a site that ...
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1answer
115 views

Money type for dad's partial distribution from 401k?

My dad is 66, retired, and has around $75k in his 401k with ADP. He wants to pull $5k out of his account. ADP sent a form to fill out and I am helping him since he has some questions. On the form ...
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1answer
215 views

What is a Mega Backdoor Roth IRA?

The so-called "Mega Backdoor Roth IRA" was coined in the following article in 2014: I don’t hear about new ideas very often, but here is one that a few people might find very useful. I call it the “...
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2answers
86 views

401K loan repayment

401 K plan allows me to take a loan and repay it in monthly installments with 5% additional, which adjusts it for inflation, i.e., I do not have to pay any fees or interest rate for my loan. I know ...
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10answers
3k views

Any experience with maxing out 401(k)?

I'm 23 right now, and I'm currently contributing about 6% of my salary to a 401(k) with an employer that matches 20% of my contribution up to 6%. Based on various calculators, continuing at this rate ...
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6answers
13k views

Is putting money in a 401(k) plan risky?

I've been working for a company that offers me a MassMutual 401(k) plan as a benefit. The employer's match is 50% of my contribution. I've contributed 3% of my gross salary to the plan, and planning ...

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