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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7
votes
4answers
697 views

Advice on where to put money once I've hit the income limits on Roth IRA?

For the past few years I have been contributing to my company-sponsored 401k just enough to get all of their match, and contributing up-to-the-limit in a Roth IRA. I've now reached the income limits ...
3
votes
1answer
220 views

Should I cash out or rollover 401(k) securities?

I recently changed employment and have securities in my former employer's 401(k) plan. The cash component of the 401(k) I am rolling over into an SEP-IRA. What I need advice on is whether I should ...
7
votes
3answers
10k views

Employer doesn't offer a 401(k). Where can I invest pre-tax dollars?

My employer doesn't offer a 401k and it doesn't look like they will anytime soon. I already have a maxed out Roth IRA, so I would really like to do something with pre-tax dollars before I push my ...
4
votes
3answers
839 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 ...
3
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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?
7
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2answers
2k views

401k Rollover - on my own or through my financial advisor?

I recently changed jobs and have a sizable sum in my old employer's 401k plan. It's doing fine but there are quite a few fees and I would prefer to roll it over. I'm considering two options. First, ...
3
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4answers
274 views

What are your experiences with 'self directed' 401ks?

Some background: have no plans to leave current company anytime soon, so (short of borrowing against my 401k balance to invest outside the 401k) I can't get the funds out want to max out my 401k ...
4
votes
2answers
405 views

Rolled over husband's 401(k) to IRA after his death. Can I deduct a loss since?

When I rolled over my husband's 401(k) into an IRA after his death, the beginning balance was 100,000.00 and now the balance is around 10,000.00 If I sell the IRA, can I deduct the loss on my taxes?
5
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1answer
4k views

Foreign national currently working in U.S. & investing in 401(k) plan: How will taxes apply?

I am a foreign national currently working in USA. I am considering contributing around 5K to a 401K plan (with no employer match). I intend to return to my country in a few years (when I am in my 40s)....
2
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3answers
7k views

Using bonus in a tax-efficient way with my 401k account? [duplicate]

Possible Duplicate: My bonus is taxed at a higher rate than my regular paychecks, so should I contribute 100% of my bonus to 401k? Is there any tax advantage that I can gain if I invest my bonus ...
1
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0answers
264 views

Are there important differences between a 401k and 403b plan? [duplicate]

Possible Duplicate: How are 401(k), 403(b), and 457(b) tax-advantaged retirement plans different? How are they alike? I work for a non profit and as such my retirement plan is a 403(b) rather ...
5
votes
4answers
421 views

Should a $150K mortgage @ 6% be paid off with $150K withdrawn from a 401K at retirement?

Should a $150K, 30 year mortgage @ 6% be paid off with $150K withdrawn from a 401K account at retirement?
5
votes
4answers
391 views

How do I determine how much money to put into pre-tax and post-tax retirement accounts?

Is there a good rule of thumb for determining how much money to put into each type of account? I'm not at a point where I can max both my 401k, my ROTH IRA, and my wife's ROTH IRA, so I'd like to know ...
9
votes
2answers
520 views

401(k) administration fees vs Rollover IRA fees?

I'm evaluating rolling over my old 401(k) into a self-administered IRA. I know the general costs and benefits (mostly benefits, in terms of increased flexibility, as stated here), but I'd like to see ...
6
votes
2answers
350 views

Best way to fund solo 401k account in cash crunch?

I'm Self-employed in the US. 2010 was a good year, and I am facing a big income tax bill. Will owe $18-20k in April. I can reduce that significantly if I max out my solo 401k at $45k. Haven't made any ...
13
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3answers
4k views

What is most time-efficient way to track portfolio asset allocation?

I've recently decided I wanted to track my investments over time so that I could accurately determine really cool financial things like: My actual asset allocation My actual rate of return over time ...
20
votes
4answers
3k views

Is it better to use a 401k loan to make a down payment or to put less than 20% down?

I'm about to buy a house and am considering two options: Make a 12% down payment and pay for mortgage insurance Take out a 401k loan and make a 20% down payment I'm having a hard time finding ...
10
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5answers
20k views

What is the difference between a Rollover IRA and a Roth IRA?

Previous Question. I have decided to roll my 401(k) into a Roth IRA. I use ThinkOrSwim as my broker currently, so I plan on opening an IRA with them. When opening the account I'm presented with the ...
10
votes
1answer
499 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 ...
5
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1answer
419 views

Are 401k and IRAs protected the same way during bankruptcy?

I've heard that IRAs offer a better protection during bankruptcy but i can't find any information about it.
18
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3answers
763 views

Quit my job: What can/should I do with funds in previous employer's 401(k) plan?

I recently changed jobs, and my previous employer offered a 401k. I know I can roll that money into an IRA. Before I do anything, I would like to understand what options I have, and which option is ...
2
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2answers
139 views

Rules and tax impact of rolling over my work 401(k) to a self-employed 401(k)?

Title pretty much says it all. I am trying to do some work on the side and I wanted to put my current job's 401k money (which 95% of it was rolled over from a previous 401k) into my on 401k that I ...
6
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1answer
5k 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?
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 ...
3
votes
1answer
454 views

Switched jobs & short on cash. Should I withdraw from 403(b) or borrow from 401(k)?

I switched employers a while back and obviously this resulted in a new place to throw my retirement money. Employer A was an academic institution so that money was in a 403(b), now I'm in your ...
5
votes
4answers
436 views

What happens to a tax deferred retirement account when you reach retirement age?

There always seem to be tons of articles about maximizing the amount money in your 401ks and your IRAs, but there doesn't seem to be much talk about what happens to those accounts when you get to 59.5....
24
votes
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 ...
9
votes
2answers
5k views

Comparing IRA vs 401K's rate-of-return with dollar cost averaging

I have both an IRA in Vanguard and an old employer's 401k with Fidelity management. I would like to compare the performance between the two accounts over time, in order to determine if I should ...
8
votes
1answer
8k views

How to calculate mandatory withdrawals for 401k? (Required Minimum Distribution)

I understand that 401(k)s have a mandatory withdrawal that can be triggered at some point. What triggers a 401(k) mandatory withdrawal, and how is the amount of the withdrawal calculated?
17
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4answers
3k views

Confusion about Roth 401K: Better for me to do pre-tax or Roth post-tax contributions?

My company offers a 401K and a Roth 401K. Given the income level of my family (married filing jointly status), IRAs aren't really an option. We're past the Roth IRA limits and get no deduction for a ...
7
votes
6answers
519 views

What factors should I take into account when deciding how much of my 401(k) contribution should go into my Roth 401(k)?

My employer allows new contributions to my 401(k) to go in as Roth (post-tax) or "regular" (pre-tax). What should I consider when deciding how to distribute my contributions between the two?
9
votes
2answers
918 views

When should I switch from after-tax to pre-tax retirement savings?

I am contributing to my employer's Roth 401(k). The consensus in this question is that when you're young you should make your retirement contributions after-tax so that they grow tax free, and that ...
11
votes
6answers
743 views

Is my company 401k okay or should I be using an IRA?

My company does not have a matching 401k. Instead it is a profit sharing 401k. How should I approach this? Should I consider investing primarily in an IRA instead? How much should I be ...
5
votes
5answers
560 views

Are age-related funds a good idea (Fidelity Freedom, T Rowe Price retirement etc.)

Just curious what the consenus is on just dumping 100% of your 401k into one of the age related mutual funds. My 401k is through Fidelity and they have "FreedomFunds" which retirement dates. So I ...
5
votes
2answers
275 views

What expenses do 401k funds charge?

What expenses do 401k funds charge? For example, do they charge front-end or back-end loads (commission when buying or selling funds)? Also how do I find out if the 401k administrator charges a fee?
14
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2answers
612 views

Pros, cons, & differences in investing in 401k vs. IRA?

What are some of the pros, cons, and differences of investing in a 401k vs. investing in an IRA (either Roth IRA or regular)?
19
votes
4answers
22k views

Can I roll over a 401(k) with my current employer into an IRA?

My wife has a 401(k) with her employer that she has been contributing to for years. They recently switched administrators for the 401k, and the new outfit is simply terrible - bad fund choices and ...
12
votes
5answers
7k views

Combining 401(k)'s from different past employers?

I have multiple 401(k)s from past employers. I know I can roll each of these over into new IRA accounts at my brokerage, but do the 401(k) rules allow me to combine these 401(k)'s into one IRA ...
11
votes
3answers
3k views

How much should I contribute to my 401(k)?

My employer allows me to contribute a certain percentage of my salary to my 401(k). My employer will also match a certain portion of my percentage. How much should I invest in my 401(k)? Should I ...
3
votes
1answer
47 views

401(k) Management

I have a 401k through my employer and I am wondering what good practices are for managing it. I know a lot of people set it and forget it for years and years. Is this a terrible thing to do? How do ...
21
votes
1answer
3k views

How to invest after 401k and Roth IRA are maxed?

I'm in my 20's. I'm a big saver and I think I've covered the basics, including: Paying off all high interest (>3%) debt. Getting the full company match out of my 401k. Maxing out my Roth IRA for the ...
5
votes
4answers
13k views

Can I move my 401k to another country without paying tax penalty?

I might want to move the money in my 401k from US to Canada. I do not work with my previous employer anymore, but now I am self-employed. Can I do this without incurring penalties?
7
votes
1answer
6k views

Are you allowed to have both a 401(k) and a SIMPLE IRA? If so, what about limits?

Are you allowed to have both a 401(k) and a SIMPLE IRA? And what would the limits be on the combined total? I have two employers but I am maxed out at one. My understanding is that I can't use a ...
49
votes
4answers
6k views

Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)?

I just graduated, and I'm starting a new job soon. My employer has pretty good policy for matching 401(k) contributions, so I want to invest as much as possible, especially during this first year. My ...
10
votes
5answers
597 views

Does my company's 401k plan provider matter to me?

My company is about to change the 401k provider it uses from one major provider to another. Does this matter to me, provided my company doesn't change any of it's benefits policies?
9
votes
2answers
8k views

TurboTax is telling me to open an IRA now, and get a $5K deduction this year, is this a smart thing to do?

I'm 21 years old, and 2009's total itemized deduction for me is $1,908. I'm going with the standard deduction, but next year seems like it has a lot of potential to save if I open up this IRA that ...
32
votes
4answers
3k views

Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA?

I recently started a new job and have a 401k from my previous employer that I don't know what to do with. Should I roll it into my new employer's 401k, a traditional IRA or a Roth IRA?
9
votes
2answers
1k views

How are 401(k), 403(b), and 457(b) tax-advantaged retirement plans different? How are they alike?

How are 401(k), 403(b), and 457(b) tax-deferred retirement plans different? How are they alike?
4
votes
1answer
193 views

What kind of traditional IRA should I use to hold funds from old employer 401K plans?

Further to another question I asked , if I am going to open a traditional IRA to hold funds consolidated from old 401K plans, what should I be looking at for the most flexibility? There are lots of ...
8
votes
3answers
389 views

What's the best way to manage all the 401K accounts I've accumulated from my past jobs?

I should be managing my retirement money better and one problem is the number of accounts I have (4). Would it be better for me to consolidate and what's involved in doing so?