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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10
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1answer
508 views

Should I rollover my 401(k) into a Roth IRA in 2010, or wait until 2011?

After asking my previous question and reading about the different options available, I'm looking at rolling it over to a Roth IRA to avoid paying the taxes at retirement. Is it better to do this in ...
10
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1answer
17k views

What happens to the gains or losses made on the non-vested portion of a 401k after you leave your job?

If you leave a company that matched 401k contributions before the vesting schedule is complete, the non-vested money is returned to the employer. I'm curious what happens to the gains/losses on the ...
9
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2answers
3k views

Are you allowed to withdraw from 401k for no reason if leaving the company?

I've searched the internets extensively but I am finding it surprisingly difficult to find a straightforward answer to a very simple question. Assuming I leave the company, can I just withdraw all ...
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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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1answer
9k views

How can I find a lost 401K from a past employer?

I've been rather sloppy about keeping track of 401(k)s from previous employers. There are two that I've lost track of completely. One is from an employer that no longer seems to exist, and the other ...
7
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2answers
3k views

Withdraw from 401(k) after moving out of the U.S. with lower taxes?

I'm a resident for tax purposes (H1B Visa) at the moment. I have accumulated $35K in my traditional 401(k) account including employer contributions. I'm planning to permanently move out of the U.S., ...
7
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1answer
8k views

Is it a good idea to increase W4 allowance claim in order to fully fund 401k?

My company matches my 401k contributions, up to a limit, 6%. I don't currently contribute the max, but I would like to start. I know when I increase the W4 allowances, my take-home pay goes up, and ...
7
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1answer
3k views

Moving current employer 401(k) balance into self-directed solo 401k?

Let's say my employer offers a 401(k). In general, this means I can only pick from a basket of funds to invest in. I prefer self directing my investments, and my broker offers a no-fee solo 401k. I ...
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1answer
1k views

Can I contribute money to a 401k, 457b, and an IRA all at the same time?

I am a retiree who is returning to full time work. Can I contribute the maximum to my full time job's 401(k) and to my part time job's 457(b)? And then also contribute the maximum to an IRA?
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2answers
2k views

Non-qualified Savings Plan vs. 401(k) for Highly Compensated Employee

Late last year, I started a higher-paying job than I've ever had. Today I got a letter from my employer's benefits department and Fidelity telling me that I'm expected to pass $115,000 in ...
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1answer
1k views

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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2answers
639 views

Which should I prefer, traditional or Roth 401k? [duplicate]

Possible Duplicate: Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)? I'm just a few years out of college, and am starting to put aside some retirement savings. My employer ...
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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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1answer
6k views

What is the difference between 401(k) accounts in the U.S. and RRSPs in Canada?

What are the major differences between the two?
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2answers
7k views

My employer is switching 401k plan providers. How might this work in practice?

For instance, my company will be switching my 401k from Fidelity to Wells Fargo. When plan providers are changed like this, am I likely able to keep what I currently have invested with the previous ...
6
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3answers
1k views

Should I take a loan on my 401k to repay student loans?

I have a student loan that has 6.5% interest (highest rate of many) and would be able to repay it if I took a loan on my 401k. I know the basic trade-off is that my money may do better in the 401k ...
6
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1answer
703 views

If a non-citizen non-US-resident withdraws from their 401k, are they taxed based on their US income or worldwide income?

This is a follow-up to my previous question. Let's say you spend 10 years in the US as a non-US citizen and end up saving up $150k in your 401k fund. After 10 years you finish your employment and ...
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2answers
4k views

401k Catch up Provision - Limits on timing?

My girlfriend, a Highly Compensated Employee (HCE rules in effect), has her 401k contributions in check by her plan and HR. However, she is also 50+, thus eligible for the Catch Up provision for $5500 ...
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5answers
378 views

Is there any reason at all to have a traditional IRA if you already have a 401k and earn more than a certain amount?

I was not aware that if you have a work-sponsored retirement plan, then traditional IRA contributions are pre-tax only if your salary is low enough (according to this). Given that, is there any ...
5
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1answer
385 views

Does it make sense to max out contributions earlier in the year?

Let's say a person is making regular monthly contributions to his/her Roth IRA, HSA, and 401K with employer match, up to annual limits. All contributions are put into index funds. Assuming this person ...
5
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2answers
738 views

Too late to max-out my 401k but need an alternative to offset taxes?

I got 'double paid' for the first 7 month's of this year as my old job paid out severance and my new job paid me. My accountant has only just told me I will probably owe $15k in Federal taxes and ...
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3answers
27k views

I am not a U.S. citizen. What happens to my 401K if I have to go back to India?

I am not a U.S. citizen. What happens to my 401K if I have to go back to India? Can I distribute (withdraw) my money at that time without paying the penalty?
5
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1answer
296 views

Company Switched 401(k) Provider & Failing Highly Compensated Employee Test

My company switched 401(k) provider in Q3 of 2016 and at the time of the switch I've already contributed $15K Roth into the account for the 2016 calendar year. Then came the notice that I've failed ...
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2answers
362 views

How can I calculate my income for purposes of an IRA deduction when I have HSA/401k deductions?

This chart here has the income restrictions for IRA deduction income limits. It does not use your AGI but a modified AGI. I have been unable to find any resources detailing how this income ...
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4answers
448 views

Why are typical 401(k) plan fund choices so awful?

I don't expect a huge number of funds to choose from in a 401k plan, but all the plans I've ever seen are loaded with funds that have outrageously high management expense ratios (MERs) and they ...
4
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1answer
246 views

When should I contribute to my IRA over my 401(k)?

I know there are a few different factors to this, such as if you've reached the contribution limit for the year on your 401(k). With a 401(k) you can get employer contribution matching and a higher ...
4
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2answers
219 views

When borrowing from a 401k, is the 401k the source of the funds, or the collateral?

I understand that borrowing from a 401K is not a good idea. But I still want to be familiar with some of the mechanics. If someone takes out a $5,000 401K loan, is the money taken from the 401K ...
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2answers
574 views

Are 401(k) & IRA Contribution Limits Mutually Exclusive?

Are the $18,000 401(k) 2017 limit and the $5,500 IRA limit mutually exclusive for a combined limit of $23,500 (under 50)? Or are they inclusive, meaning $5,500 in an IRA, would limit a 401(k) to $12,...
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2answers
4k views

Why doesn't a mutual fund in my 401(k) have a ticker symbol?

For my 401(k), I am trying to diversify while avoiding high expense ratios. Luckily among my investment choices are the Vanguard Target Retirement date funds which have fairly low expense ratios (≤0....
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1answer
7k views

Are FICA taxes applied before or after contributions to a pre tax 401k?

When I make contributions to my employer's pre-tax 401k account, are FICA taxes applied before or after making the contributions?
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3answers
892 views

Should I take money out of an old 401(k) to put a down payment on a house?

My wife doesn't work anymore and she has a 401(k) of about $80,000 from an old job. I have been kicking around the idea of taking that money out or rolling into an IRA so that I can have better ...
4
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1answer
140 views

Should I do a Rollover 401k instead of a Rollover IRA because of the loan option?

Until now, I was pretty much convinced that rather than rolling over the 401k from my old company to the new company, it is a much better option to roll everything over to a Rollover IRA, and my ...
3
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1answer
204 views

Still invest in 401K with a high expense ratio?

I know that a low expense ratio is preferred. But what if the expense ratio is above the threshold limit (e.g 1.20%+), do you still invest in a 401K or not bother at all?
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2answers
4k views

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 ...
3
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1answer
305 views

Self Employed 401k: contributions vs more available deductions

I'm in a unique situation this year where I worked self-employed 1099 for a few months and am full time W-2 for the rest. My full time job does not offer a 401k, but I can open a self-employed 401k ...
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5answers
280 views

Investing in 401(k) and a Roth IRA

I am a senior in college and I have $3,000 dollars from my summer internship that I want to invest. I was thinking of investing it in a Roth IRA in an index mutual fund. However I am questioning my ...
3
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2answers
560 views

Ordering of backdoor Roth conversion and rolling over 401k?

I have two retirement accounts: Traditional IRA funded with non-deductible contributions 401k I left my job so I want to roll over my 401k into a Rollover IRA, but I've also heard about the benefits ...
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2answers
3k views

Are there any circumstances in which unvested employer 401(k) contributions revert to the employee?

Many companies (including a former employer of mine) have 401(k) vesting schedules. The idea is that the employee keeps all of his/her contributions, and the employer piece has a percentage that you ...
3
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4answers
230 views

Correctly Accounting for Inflation?

For the purpose of 401k retirement planning, suppose: An individual has 20 working years left. Upon retiring, the individual wants to withdraw $60k per year (in today's dollars) from a nest egg for ...
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1answer
2k views

IRA Deduction when changing from 401k offered job to non-401k job mid year

This is challenging one to figure out. I had a job that is ends 11/30/2014 that offered a 401k. I have a new job that doesn't offer a 401k. I'd like to max my IRA this year to avoid tripping ...
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 ...
2
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1answer
954 views

Would you liquidate your 401k to pay off debt in this situation?

I have a potentially complex situation that I am looking to resolve in the least painful way possible. I am going through a divorce. My income is nearly twice as much as my ex's, and I am going to ...
2
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1answer
1k views

401K participant for part of year - Can I contribute to an IRA?

I have participated in my previous employer's 401K plan (traditional and Roth) for three months of 2014. My new employer does not allow participation in their plan until one year of service. Can I ...
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2answers
732 views

IRS Form 5500-EZ (5500EZ). How to file late

I had an S-Corp that I closed down in 2013. I didn't realize I needed to file a form 5500-EZ because although the assets in the Self Managed Individual 401K were less than $250,000, you need to file ...
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2answers
337 views

How long do I have to pay back a 401(k) loan?

I have a loan taken out on my 401k through Fidelity. The loan originated on this date: 12/19/2017. I will be leaving my current workplace and moving to a new workplace that uses John Hancock 401k. ...
2
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3answers
309 views

Should I spread my 401k investments across more than one broker?

After many years contribution, my previous employment's 401K account has more than 500K now. I don't like its plans which have less returns comparing with plans from other broker companies. I am ...
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2answers
5k views

Can I roll my HSA into my 401K?

I am 66 years old and enrolled into Medicare Part A. I am no longer eligible to contribute to my company's HDHC (HSA type) healthcare plan. Can I roll my current HSA into my 401K?
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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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3answers
567 views

Should I contribute to my 401k with a high expense ratio and no matching?

This is similar to this question (I can't comment yet so that's why I'm making this new question. The OP didn't mention anything about not having matching etc..): Still invest in 401K with a high ...
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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 “...