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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6
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4answers
51k views

Are 401k Employer Match amounts subject to FICA or any other tax?

When my employer makes a contribution to an employee 401k account, are any taxes payed by the employee (e.g. FICA)? And does the employer match amount show anywhere on the employee's W-2 or 1040?
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2answers
246 views

401k Taxes (USA) — Traditional vs Roth (not IRA)

Good afternoon, Looking for the 401k tax pros out there. I have four primary 401k tax related questions: 1) Income Tax Bracket at Retirement: When retiring and "cashing out" on a trad 401k: I ...
3
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1answer
62 views

Can I invest in both SEP IRA and IRA or solo 401(k) if i've worked in W2 for few months and as an independent contractor for the rest of the year?

I worked as a W-2 employee from Jan-Mar and became an independent contractor from Sep this year.My employer did not provide me 401(k) or any benefits. I received around 18K after tax from W2 and I'm ...
4
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1answer
406 views

Is the Thrift Savings Plan a 401k plan, a 403b plan, a 457 plan, or none of the above?

Is the Thrift Savings Plan a 401k plan, a 403b plan, a 457 plan, or none of the above? If it is none of the above, then where are the rules and regulations of the plan defined if not in the U.S. Code?
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3answers
225 views

When do we have to pay the tax for 401K withdrawals?

I am planning to withdraw money from my 401K to use it for down payment on a house. The question is, when do I have to pay the tax? If I withdraw it in 2020 after I file my tax return, would I pay the ...
2
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2answers
139 views

Am I eligible to be fully vested?

I have worked for a company in Illinois for a little more than 2 years and was layoff in 2016 in a "mass layoffs" of 37 employees. My 401K shows two balances: Vested balance: $25,651 and Current ...
4
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2answers
230 views

IRA limits with employer 401K

My wife and I both work and both our employers offer 401K plans. When I first started my job 4 years ago they had a policy that required you to work for 1 year before you could start making ...
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3answers
293 views

Are the fees on this 401k plan too much?

My employer uses a relatively new company called "Human Interest" for our 401(k)s. I have 401(k) accounts with Fidelity and TransAmerica from former employers, and I'm trying to decide which is best. ...
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0answers
174 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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2answers
130 views

Does your 401k provider stop you when you hit your max?

In general, I was wondering who is responsible for keeping track of when a normal, employer-sponsored 401k account has hit its pre-tax contribution limits for a year. I assume that, in the end, the ...
2
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3answers
332 views

In-kind transfer for a traditional 401(k) to IRA rollover

I'm rolling over a 401(k) that is holding only VIVLX, a Vanguard target date fund, to a brokerage. It's not proprietary but it is the institutional class of the fund, so my brokerage minimum for ...
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0answers
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 ...
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1answer
2k views

What will happen to my 401k money if I leave USA permanently?

I am 33 years old and currently employed in USA on a work visa. I am contributing to my employer provided 401k plan since 4 years. I might be moving back to my home country once I max out my current ...
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3answers
259 views

Reasons to invest in 401k vs pay off loan in 1 year?

I have ~$70k across 401k and Roth IRA. I have federal student loan at $17k with 3.8%. Thus, my NW is $53k. If I choose to invest $19k into my 401k and assume the average rate of return of 7%, my 401k ...
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1answer
136 views

What is “IRS compliance testing” for terminated 401k plans?

I have a 401k through a previous employer. That employer recently ceased operations, and as part of that, terminated their 401k plan. As such, the employer directed myself and other employees to fill ...
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2answers
134 views

basic retirement planning for someone middle-aged

I'm in my early 40s and haven't done anything for retirement yet. I do own some property which I plan to sell later this year, and I'm planning to use the proceeds to plan for retirement. The proceeds ...
3
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1answer
237 views

Is it typical to wait 19 months for first employer 401K contribution?

I want to understand if these policies would be considered typical, better than average, or below average. An employer offers a matching contribution to 401K, details are: 0% vested in employer ...
4
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1answer
245 views

Can my employer make me forfeit Safe Harbor match if I over contribute?

My employer 401k plan offers 'after tax non Roth' contributions, in addition to traditional pre-tax and Roth. I chose to max out my pre-tax contributions at $19,000 this year and then switch to '...
24
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5answers
16k views

401(k) investment after being fired. Do I own it?

A friend was released from their job after 4 years, not vested. I understand 5 years are required to be vested. Are they entitled to the contributions they made to the 401(k)?
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2answers
1k views

Does a 401(k) loan count as debt when calculating Debt-to-Income Ratio?

Does a regular 401(k) loan count as debt when calculating one's Debt-to-income ratio when applying for a mortgage? The loan is within the organization that manages the 401(k), and it does not show in ...
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0answers
79 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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0answers
808 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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2answers
393 views

Options for non-US person outside US with 401(k)

This question is somewhat related to this one. I'm a non-US person (mid 30s) currently living and working in Europe. Previously, I lived and worked in the US (Massachusetts) for >3 years. In order to ...
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5answers
8k views

Who gets the interest on a 401(k) loan?

I was looking at some information about my 401(k) and noticed that it's possible to take out a loan from your 401(k) - it was something like 6.5% interest, which probably isn't as good as a ...
13
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9answers
5k views

Should I increase my 401(k) contributions, or increase my mortgage payments

I have about $150k remaining to pay on my mortgage. There are 7 years left at a 3% interest rate, then after that the rate goes variable and increases to about 10%+. There's no penalty for paying the ...
2
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1answer
181 views

Fidelity 401(k) investment

I have started investing in a 401(k) recently. I have few questions on how Fidelity 401k investments work. Choosing Investments: Let's say I didn't choose any investment options, does that mean my ...
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2answers
525 views

Should I pay off my 401(k) loan ASAP?

I recently saw a question on the forum about "Should I pay off my Home LOAN from my 401(k) or continue to pay Interest to myself". Most responses seemed to think that paying it off ASAP was the best ...
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2answers
138 views

Tax on IRA and 401K to Roth conversion

I have a 403b account with my employer, a simple IRA account, a SEP IRA account, and a Roth IRA account. My wife has a simple IRA account, a Roth IRA account and a rollover IRA account from a previous ...
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4answers
4k views

Why is my 401k manager recommending me to save more?

I am currently contributing enough to hit the limit (~$18000) per year and get a match of 100% for 4% of it. My 401k provider (Fidelity) just sent me a quarterly progress email and suggests that I ...
4
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1answer
757 views

How do I move my 401(k) money to an overseas account?

I have lived in the United States and have a sizable amount of money in a 401(k) managed by MassMutual there. However, I'm looking at buying a home where I currently live, and the exchange rate is ...
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3answers
5k views

Should I prioritize my 401(k) over my student loans?

Lately things have been a bit tight. Between student loan payments, my HSA, my 401(k) and bills my account balance isn't going up or down, its stagnant. I am wondering if I should decrease my savings ...
3
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1answer
378 views

401(k) non resident alien -early withdrawal penalty 10%

I have a 401(k) with over 100 k in it . My question is if my former employer's 401(k) plan does not withhold the 10 % early withdrawal penalty, will I need to pay this with a US tax return ? ...
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0answers
157 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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3answers
789 views

Am I investing properly for my future?

What should my next step be? I apologize in advance for the length of the post. I consider myself to be in a good standing, but I'm always looking for ways to improve. Student loans: I graduated ...
5
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2answers
208 views

401(k) seems to be in 'limbo'?

I have worked for a large multinational in the US for many years and whilst working with them, I have built up a sum of money in a 401(k) with Fidelity. However, about 2 years ago, my division within ...
5
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2answers
568 views

Employer overpaid me by mistake and wants the gross pay back, including 401K contribution and taxes

My last week's pay at my former employer was paid out twice. They want their money back, which I will gladly do, but here is the problem: Part of the gross pay went to my 401K (no company match ...
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2answers
631 views

What are the 401(k) and IRA limits for next year?

Are 401(k) and IRA contribution limits increasing next year? If so, what are the new limits?
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4answers
2k views

Is it sensible to borrow from a 401K to fund an IRA (traditional or Roth)?

Is it sensible to borrow from a 401K to fund an IRA (traditional or Roth)? I am aware of the downsides to borrowing from a 401K plan but if the principal is low and the maturity short (and no other ...
6
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4answers
10k views

Can I be my own administrator for an Individual/Solo 401k?

I'm interested in creating a company and rolling my 401K into a Solo or Individual 401k so that I can have more control over my investments. From what I've seen so far, it looks like you need an "...
3
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0answers
153 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 ...
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2answers
921 views

found a 1994 uncashed profit sharing retirement plan check

I found an old un-cashed check dated 1994 for $487 from my Xerox Retirement plan with no expiration date. Can I still cash it?
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2answers
273 views

Borrowing against 401k for first home - things to watch

There is a general advice that borrowing against 401k is to be avoided. When I was looking at related questions here in SE I found a few discussions where some experts challenged the generality. For ...
3
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1answer
79 views

401k / Foreign Tax Credit

I am resident in the UK. My Wife is also resident in the UK, but is a US citizen. I'm 40 years old. We file a joint US tax return each year, and we file 1116 against all of my UK earnings. I have ...
13
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3answers
3k views

Is it wise to pay off mortgage with 401k?

I've been considering paying off my mortgage with my 401k balance. Some particulars, I'm in WA state in the US, and I'll turn 60 in about a week. I have enough in my 401k with my current employer to ...
3
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1answer
131 views

Contribution limit to 401k after changing job and rollover old 401k to traditional IRA

Let's say I contributed $8,000 to my 401(k) while working at company X in 2016. Later I quit company X. I am now working at company Y. I'm thinking of rolling over the 401(k) at company X to ...
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7answers
5k views

Should one save up to purchase a house/condo or maximize their 401(k) first?

On the one hand, it seems like 401k with employee matching is one of the best investments you could possibly make. On the other hand, paying rent to a landlord is an ongoing loss compared to living in ...
8
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3answers
2k views

I'm attempting to understand my 401k and how much I need to contribute to maximize the match

I pretty much put the entire question in the title. My company's 401k is the following: Your employer matching contribution is equal to 100% of your employee deferrals up to 1% of eligible ...
38
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4answers
10k views

Why is there a cap on 401k contributions?

In theory, the government wants everyone to save up as much as possible for retirement so that citizens don't end up starving when they're no longer able to work. But in practice there is a limit of ...
13
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2answers
1k views

Do Roth IRA contribution limits apply to Rollover IRAs?

My wife has already maxed out a Roth IRA for 2010. She just quit her job, and has a 401k from her former employer. Would I be able to roll it into a new Roth IRA even though she has already ...
9
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3answers
455 views

Does it make sense to start saving into a 401k, if you might move out of the US before retirement?

Contributions to 401k funds are subject to a 10% penalty if taken out before the age of 59.5. Presuming my employer has a 401k matching program, does it make sense to contribute to a 401k if I might ...

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