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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1answer
66 views

Backdoor Roth Conversions with 401K Rollovers

In a related question to this one, I currently participate in backdoor Roth conversions (i.e., I contribute $5,500 annually to a Traditional IRA, then convert it to my Roth IRA prior to investing it ...
2
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1answer
260 views

Is it advisable to rollover multiple 401k accounts? [duplicate]

I left my fulltime job mid 2017. I am not earning since then (no pay roll being generated). Since many years I have changed many jobs. Each job had a 401k plan which I maxed out every year. So I have ...
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1answer
343 views

If I rollover a 401(k) to Roth IRA can I make investments and still withdraw them?

I am a grad student in the US. As an undergrad I managed to save about $20,000, I have no debt, and I have a 401(k) with about $12,000 to which I am no longer making contributions. I am breaking even ...
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1answer
3k 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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5answers
175 views

What are some 401K alternatives?

If your employer offers a 401K, but you do not like their investment options and fees, what are your alternatives? I know there are Traditional and Roth IRAs. But if your income is too high to ...
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1answer
655 views

Is there a way to undo 401k contributions?

I made a mistake... To give some context: for the first 3 months of 2018 I was working in Texas at a company that matched the first 4% 401k contribution. I had been looking for a different job and ...
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1answer
139 views

Restricted in service distribution at age 59-1/2

Is it legal for an employer to restrict 401K in service distribution to employees 59-1/2 years of age or older? Is the employer liable if this restriction was not clearly explained at the time of a ...
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1answer
141 views

Getting around discrimination clause on 401K contributions?

I would like to take advantage of the increased employer contribution limit. I realize that my employer cannot change our plan for just some people. But what if it was for all employees? How creative ...
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11answers
10k views

Is your future tax bracket the ONLY consideration for Roth vs Traditional 401(k) accounts?

I understand that Roth contributions get taxed on the way in. Income tax now at whatever tax brackets currently apply, no tax to pay when I take distributions at retirement. I understand regular pre-...
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1answer
87 views

Transfer 401k without fees

I had a 401k plan with my company that switched financial firms. The new firm said they had to close it, wait for a check to come from Nationwide and then reopen it up with them. Could this have been ...
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0answers
37 views

Working in the USA moving back to Canada

I am a Canadian currently working in the US for a company that offers a 401K. If I move back to Canada let's say half way through the year, is my 401K contribution limit prorated from $18500 to $9250? ...
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0answers
111 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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1answer
8k views

401k withdrawal leaving US, non citizen

Help me understand the taxes and penalty on 401K withdrawal. What is wrong in my understanding in the following? I am a non-US citizen and I plan to leave the US in 2 years. My company matches it ...
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1answer
127 views

What is the difference between 401k and Roth 401k?

New to the 401k stuff. I just saw Roth 401k; what is the difference from a 401k? I already have a Roth IRA from Fidelity. Is that the same?
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1answer
74 views

I don't have a 401K and I have a small business. Can I get one now before filing 2017 taxes and deduct what I put in?

I'm quite new to 401k and I have a small repair shop fixing computers. I haven't filed for 2017 taxes yet. I am a LLC where I file with my personal taxes. If I pay taxes of $5000 this year, can I ...
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10answers
15k views

How can I protect my 401(k) when the stock market is performing badly?

I just opened my 401(k) at the beginning of 2017. In 2017 it did great because of the bull market, but since 2018 I've lost about $1,000. All of my contributions this year have been a complete waste. ...
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1answer
239 views

Take a 401k loan for better investment options? [duplicate]

I recently got into an investment discussion with a coworker about what the best way forward would be if a "trade war" does break out between the US and China. He is older and has a considerable ...
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3answers
488 views

the annual limit for my 401k is $500 - what can i do?

Last year I was forced to take a withdrawal from my 401K because my company failed the highly compensated employee test. I had put in $18,000 into the 401K and got ~$10,000 back. After that incident ...
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0answers
111 views

Reporting of form 1042-S

I am a US citizen living in Australia, 61 and made a small withdrawal from my 401K which they deducted 30% for tax. I received a 1042-S form from my 401k company for a withdrawal I made. DO I file ...
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1answer
62 views

How to convert a Traditional IRA contribution from 2016

Here's some background information about Dave For 2016, Dave has Worked for a company (say, Employer A) that offered a 401k and he contributed to it. Say the balance of the 401k is $30k. Also ...
6
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1answer
2k views

Why does Voya use Vanguard fund names with different prices and no ticker symbols?

I have a Voya 401k account from employer. I've been investing in four funds, three of which (I thought) are "Vanguard" funds. The names are identical to Vanguard funds, but they aren't the same at ...
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1answer
103 views

How does having a 401(k) affect taxes on a Roth IRA?

I have a traditional 401(k) account from my employer and I'm thinking about opening a Roth IRA to start saving for my daughter's college. From a tax perspective, does having a 401(k) account impact ...
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2answers
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Special Needs Trust and Financial Planning

update: I may not have explained it clearly in my post below but I don't believe the intent is to close out the 401k or fund the life ins. policy using it. I will clarify with the consultant what the ...
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0answers
19 views

Rollover 401k to IRA or another 401k in the future [duplicate]

I have a 401k from my previous employer but currently working at a contract-to-hire position and have no 401k. Would it be a better idea to roll the 401k into an IRA or wait until I have another 401k ...
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2answers
345 views

Just left my job. Should I roll my 401k to a Roth IRA?

I recently left my job to go back to school. I have a 401k plan with my previous employer with an account balance of $12000, and a vested balance of $8000. The $4000 difference is the employer match ...
2
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1answer
113 views

Rollover of 401k funds into an IRA

I am a 65 year old NON-US citizen, with an existing 401k based in the US. I am wanting to draw a monthly income from my "pot". Purchasing an annuity from insurance companies does not seem likely 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 ...
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3answers
305 views

Is a “bookkeeping fee” normal for a 401k plan?

During my work years I had couple of 401 K plans with my employers. My current plan charges higher fees then any of previous plans. Recently there appeared one more so called "Bookkeeping fee" ...
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1answer
143 views

Refinance for renovation, use 401k? HELOC? Both?

We've decided to remodel our kitchen. For the sake of round numbers, assume I have about 20K in the emergency fund/savings right now. 20K in a stock portfolio, and a MUCH larger amount in the ...
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1answer
135 views

Locating my old 401k from previous employer after administrator changed

I am trying to locate my old 401k from a company I left 7 years ago. I know they changed plan administrators, but the current administrator has no record of it. The company is not returning my calls. ...
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1answer
241 views

Are unvested contributions from the employer counted towards the 401K contribution limits?

I believe the annual total 401K contribution limits is $55000 (employee + employer + after-tax). Do the unvested contribution from the employer count towards this limit?
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2answers
147 views

Is it really a good idea to put money in 401(k)? [duplicate]

Assuming your company doesn't have 401(k) match, is it really a good idea to put money in 401(k)? Everyone says it's a good idea but I don't think so. Why not save your money and buy a house/...
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2answers
170 views

How to mitigate 401k risk with bonds?

I’ve read that for 401k’s, you want to reduce risk as you get older and the primary means to do that is to move money out of stocks and into bonds. Assuming that principle is generally valid, then ...
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2answers
115 views

Purchasing a rental property: Should I get a 401k loan or a home equity loan?

I needed cash right away to help pay for the downpayment. I took out a loan from my 401k which I'm currently contributing to per paycheck through my employer. I only needed about $10k, but I ended up ...
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2answers
109 views

Should I switch from my 403b to an IRA

Would it would be wise to stop contributing to my current 403b retirement fund and switch to an IRA? Current Situation: 403b has no employer match . 403b is currently with Fidelity. I am young and a ...
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3answers
194 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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4answers
8k views

Is it true that you can have too much money in 401k?

I've been hearing stories about people who invested a lot into their 401k and when they retired, they couldn't use the money fast enough. They said that there's a limit in terms of how much they can ...
3
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1answer
189 views

Where to move money in 401k to reduce risk?

I have a 401k where about 75% consists of stock based mutual funds. I want to use the remaining 25% to help protect what I've earned, especially in case the stock market goes down significantly. To do ...
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1answer
1k views

W8BEN of Indian individual

I need help in filling W8BEN form. I will use this to reduce (or zero) my 401K withholding (whenever I withdraw money) as there is a treaty between India & US. I am not sure what should I fill in ...
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2answers
106 views

Retirement accounts - limits on asset contributions

If someone has appreciated assets like shares or equity of a privately held company and they want to transfer those into a tax-deferred retirement account like an IRA or 401k, is that possible? If ...
3
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1answer
152 views

Using 72(t) to avoid 10% penalty, how much can I withdraw from 401k per year? What are the main disadvantages for doing this?

Imagine this scenario, I'm 40 years old, unemployed, and have 1M in my 401k. If I want to use 72(t) to withdraw money from my 401k, to avoid 10% penalty. What is the maximum amount that I can ...
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2answers
1k views

Within the same calendar year: Current job does not offer a 401k. So I contributed to an IRA. Future job does. Can I still contribute to the new 401k?

Current job does not offer a 401k account. So I contributed yearly maximum to a Traditional IRA. My new job does offer a 401k plan. Can I still contribute to the new 401k for the year?
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1answer
82 views

If I have a 401k and a traditional IRA, am I at risk of paying double taxes if I convert to a Roth IRA?

I started with a traditional IRA that I contributed the maximum amount to for a few years. Then I get a 401k and started contributing to that. I also continued to contribute to my IRA, but it was no ...
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2answers
762 views

How does the IRS handle 401k excess contributions with employer match?

My situation is a bit complicated: Worked at company A, maxed out 401k in 2017 Left company A, rolled over 401k to IRA Started at company B. Told company B to not contribute to my 401k in their on ...
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3answers
3k views

If an employer matches 401k contributions, does each match have its own vesting schedule?

Consider the following example where an employer matches 50% of your 401k contributions, and there is a 5 year vesting schedule on the match. Your contribution Employer match Year 1 ...
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3answers
694 views

How do Financial advisors ( Wealth Management) make their commission?

My 401K is tied up through my Employer and through their financial institution. So your options are to buy what they are offering. Either I understood or not, i take what they are recommending. I ...
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1answer
144 views

Is a RMD required from a 401(k) if one is over 70 1/2 and still working full time and contributing to the 401K each week?

Is an RMD required from a 401(k) if one is over 70 1/2 and still working full time and contributing to the 401(k) each week? If so, can it be done online from the 401(k) site?
3
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2answers
572 views

Can an employer place a new employee's signing bonus as contribution to the employee 401(k) plan?

Can an employer place a new employee's signing bonus as contribution to the employee 401(k) plan? I read a forum thread on https://www.bogleheads.org/forum/viewtopic.php?t=136413 (mirror) on that ...
3
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1answer
79 views

Withdrawing from 401k - Report income from day requested or received?

I have not received any income in 2017, so I was hoping to withdraw from my 401k and report it in 2017 so that I pay less from the withdrawal being taxable income. But since it is almost the end of ...
2
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0answers
151 views

20% pass through deduction + ~20% solo 401k deduction?

From what I hear none of the 401k stuff has been modified in the new tax bill This means SOLO 401ks would still have like 20+% profit contribution maxes, up to the $53k or so upper limit from entity ...