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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4
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1answer
11k views

401k withdrawal abroad and state taxation?

From what I know about 401k's, when it's time to retire, we take our 401k money and pay federal and state tax. Some states don't have taxes on 401k's — Florida is a good example. So many people move ...
8
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4answers
389 views

Is my first 401(k) fund allocation reasonable, and with respect to fees?

I just started my first job after school and am now being enrolled in my company's 401k plan, which is handled by Vanguard. By default, I was put into the Target Retirement 2050 Trust II fund, which ...
2
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1answer
267 views

What to do about the 401(k) account when leaving the employer? [duplicate]

Possible Duplicate: Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA? I have a 401(k) account with my last company. I contributed 6% and company matched up to 6%. Now ...
6
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3answers
601 views

Should I participate in a 401k if there is no company match?

The 401K program offered by my employer doesn't include a company match. Should I participate in the plan? What are the criteria one should use for estimating the worth of the situation?
6
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3answers
2k views

Safer investing (401k/savings) assuming there will be another banking crisis?

Assuming one or more of the big investment banks incurs unsustainable investment losses leading to another banking crisis, what is the safest place to invest my 401k?
8
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4answers
985 views

How to get started with savings, paying off debt, and retirement?

I am getting married soon and I am in grad school (I get paid a stipend and have a tuition scholarship). I have no retirement plans available to me. My fiancee will be starting her job soon and will ...
2
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1answer
243 views

Are IRAs and 401(k)s protected against lawsuits and garnishments?

There's as similar question about bankruptcy, but these protections apply to lawsuits or garnishments?
7
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5answers
1k views

Should I contribute to a 401k with a vesting schedule?

I am looking for some advice as to how much I should contribute to a 401k. I am considering taking a job at a place that has a worse 401k plan than I currently have - 6%, half matching. The plan has ...
2
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4answers
443 views

Should I use retirement savings to reduce mortgage given the following:

I'm fatally ill and that diagnosis is final and there's no doubt I am going to die long before retirement age. I'm married and we have two young children. I have about one year's worth of salary ...
0
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1answer
164 views

Possible pro-rated division of asset strategies without a prenup?

Example: I have $100,000 in the bank. I get married. We start a joint account from scratch. All future salaries and bills from both of us come and go from here. Is there any way to keep the $100,00 ...
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2answers
7k views

Accidentally cashed out 401k instead of rolling it into an IRA. What do i do?

I've recently changed jobs (past two weeks) from an employer with a 401k to a new employer who does not offer any retirement accounts. I made a huge mistake and accidentally cashed out my 401k ...
4
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3answers
603 views

My employer does not offer a 401k for the first year. Should I bother with an IRA instead?

My new employer does not offer a 401k for the first year of employment. Should I bother with creating an IRA account given the max limit is 5k? Or should I just put the 5k in a savings account? What'...
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2answers
1k views

Toward which year would an end-of-the-year 401k contribution apply?

Hypothetically, if a person's pay period ends on Dec 31st 2012, and they get that paycheck the next week (as in, 2013), which year's contribution limit would any 401k contribution be applied toward?
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4answers
3k views

Could excess 401(k) contributions be used to game/maximize matches from different employers?

Suppose I max out my 401(k) really early. This avoids the risk that if I lose the job I would have lost the chance to contribute to it fully. However there is another risk. My company doesn't match. ...
4
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1answer
625 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 ...
3
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2answers
2k views

Mandatory 401k contributions when a company's plan provider changes?

My company is changing 401K providers. I know I must rollover my funds from the original co. to the new 401K provider, but I did not want to contribute any additional monthly monies to the new plan. ...
7
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4answers
460 views

Multiple 401(k) accounts

I had a 401(k) with a previous employer. When I left, I rolled the account over to ShareBuilder and it's been sitting there ever since. I am not making any contributions to this account. In the last ...
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 "...
6
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4answers
49k 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?
4
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2answers
7k views

How is my 'Personal Investment Performance' on my 401(k) calculated?

My 401(k) shows the following: my starting value at the beginning of the year personal contributions employer contributions investment gains/losses Closing value from Yesterday Total Change Personal ...
9
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3answers
541 views

How to find a good third-party, 401k management/advice service?

I have a 401k with my employer that offers a pretty good contribution matching benefit. I am young and I've had the plan for about 5 years and my money is starting to grow into a pool that is big ...
7
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3answers
483 views

How should I be contributing to my 401(k), traditional or Roth?

My company just started offering an 401k plan in place of a Simple IRA. I am able to contribute into my 401k two different ways, traditional or roth. From the way I understand it, traditional ...
7
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2answers
331 views

Company buyout & I don't qualify for the new company's 401k (too young!). What are my options?

I participated in my company's 401K plan for my length of employment as they offered a match program. Now, with the company being bought out, I no longer qualify for the new company's 401K plan due to ...
3
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1answer
336 views

What are some good next steps for the HENRY?

HENRY (High Earning Not Rich Yet) I'm 37, single, and only in the last two years have I really gotten serious about saving. Current 401k balance is $28,000 I'll probably make about $125,000 Gross ...
8
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2answers
753 views

How do 401(k) mutual fund expense ratios work?

Simple question - how do expense ratios work? Is there a fee that is calculated regularly, and the amount is taken out of my account? Is it subtracted from the funds earnings? Context: My work has ...
5
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1answer
303 views

What are the tax results of a 401k to Roth IRA rollover?

In 2011 I rolled over my (Traditional) 401(k) into a Roth IRA. I realize that I will need to pay taxes on the rollover, but I had a few questions. Do I pay taxes on the full amount, or only the ...
8
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2answers
14k views

When leaving job, is there a time limit to rollover a 401k into a Roth IRA?

My wife is leaving her job in the next month and going to a new one. She currently has a 401k that we would like to rollover into a Roth IRA ASAP. However we might be moving in a few months and ...
22
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3answers
821 views

Why is there such disparity of max contribution limits between 401K accounts and regular IRA accounts?

In 2011, regular IRA accounts allowed only $5,000 maximum contribution, while 401K accounts allowed up to $16,500. Why is there such a disparity? Why do tax advantages favor employees of large ...
6
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2answers
1k views

Are 401(k) contribution limits for employee & employer separate? What about hitting the limit?

I am 29 years old and have a 401(k) already with my company. I just started contributing 10% to my 401(k), up from my 8%. My company does not match but they do put 10% of my salary into my 401(k) as ...
2
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3answers
1k views

401k with paltry match or SPY ETF?

Summary: I read about the SPY ETF here on SE ( Where should my money go next: savings, investments, retirement, or my mortgage? ) and I am curious about JoeTaxpayer's comment specifically on the idea ...
5
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2answers
519 views

What is an appropriate level of 401k fees or expenses in a typical plan?

I am aware that there are fees involved in a company 401(k) plan. These can vary widely depending on where you work and the particulars of a plan. What would be an appropriate amount of fees and ...
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2answers
1k views

Is Unvested Money in a 401(k) counted as income?

I left my job during the middle of 2011. I had $5,000 from the company contributed to my Roth 401(k) as part of a profit-sharing plan in March 2011, but only $2,000 was vested. I am trying to figure ...
17
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8answers
960 views

Pay off credit card debt or earn employer 401(k) match?

Should a person with high credit card debt pay it off before contributing to a 401(k) with matching?
3
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1answer
1k views

Can I contribute to both a solo 401k and a regular 401k in the same year?

I was self employed during the first quarter of 2011, then switched to full time employment. I have a solo 401k that I haven't contributed to in tax year 2011. I have been contributing to my ...
7
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3answers
2k views

Best to roll over a 401(k) into a Roth IRA or traditional IRA?

I am rolling a 401(k) from a former employer to an IRA or Roth. I am trying to figure out the tax consequences of doing so. My understanding is, is that my contributions to the 401(k) were not taxed ...
2
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2answers
3k views

401(k) contribution limits & job change: How to prevent over-contributing at new employer?

My wife is changing jobs, and we are trying to figure out how to deal with her 401(k) contributions. She contributes the maximum allowed, and depends on her employer to stop deducting when the limit ...
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0answers
207 views

Switching Jobs - What should I do with 401k? Roll to IRA? Transfer to new 401k? Leave it? [duplicate]

Possible Duplicate: Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA? I'm leaving my current employer next week and have about $10k in a 401k plan. What is best to do ...
2
votes
1answer
194 views

Employer no longer withholds, how do I self administer 401k

My employer stopped withholding during some restructuring of the business entity, I already maxed out my 5k IRA contribution, I realize I can tax defer another 15k or so in a 401k... how do I simply ...
17
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6answers
14k views

Why do some companies offer 401k retirement plans?

Why do companies offer 401k (or other) retirement plans? Let me elaborate this... I understand that it could be part of an employee's benefits and that a retirement plan option might increase the ...
11
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3answers
6k views

Green Card holder (permanent resident): Should I contribute to my employer-matched 401(k), even if I might leave the U.S. later?

I am a Green Card holder (permanent residence card) and my company offers a matching 401(k). I plan to stay in the U.S. for a long time. However, I can't control the future. If there were a family ...
6
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1answer
2k views

As a Canadian Citizen, can I move a 401k into a RRSP in Canada?

I am a Canadian Citizen and was a resident of the US for 11 years. I moved back to Canada recently and am working in Canada. I want to move my 401k to RRSP in Canada. Is this possible? What costs or ...
9
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3answers
789 views

I have a horrible 401k plan, with high expenses. Should I stay with it or move my money elsewhere?

I'm in need of help choosing options for my 401k. Unfortunately, they are not very good. Nearly all of the expense costs are over 2%! But I have brought it up with my HR to see if there is any way to ...
4
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3answers
719 views

How do I choose 401k investment funds?

I recently opened up my 401k. I will admit, that I did not do much research in choosing my investment option distribution. Does anyone know of a good book (or other resource) to guide me in my 401k ...
57
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11answers
7k views

Should you always max out contributions to your 401k?

I am a year out of college, and therefore, i don't have any real retirement/investment plans kicked off. I was having a discussion with my boss, and he was making a few claims I would like to get ...
10
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2answers
300 views

What is the maximum I can have stored in a traditional 401(k) and a Roth 401(k)?

I know there are annual limits to how much can be contributed (both from the employee and from the employer). But what about over the lifetime of the investment? If I max-out every year (say $16500),...
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2answers
278 views

Should I move my 401k out of money market and into equities in a down market?

I haven't done a great job at managing my 401k. All of my contributions have gone into a money market (VMMXX). I'm 40 years from retirement, so I think I should take more risk and allocate a large ...
11
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2answers
4k views

How do loans against 401k / 403b accounts work?

I'm really clueless about these loans. Who gets the interest? Does the account fund the loan, or are they simply used as collateral? What are the tax implications?
9
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3answers
2k views

I'm 23 and new to investing. How should I diversify my 401(k) based on my plan's choices?

My employer matches 100% of up to 4% of my gross salary. I want to contribute at least what is matched. I'm 23 and have a gross salary of $70k, and I know very little about this. I was hoping someone ...
6
votes
1answer
765 views

Can I deduct a contribution to an IRA if I also contribute to a 401(k) in the same tax year?

Can I deduct a contribution to a traditional IRA if I am also contributing to a 401(k) in the same tax year?
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2answers
108 views

Which company to roll 401k over to

Should I roll over my 401k with existing company JPmorgan or swith company to Ameriprise financial. My husbands mutual fund is with ameriprise financial . is it better to have money with two different ...