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I believe there is a simple answer to this question, but ultimately only you can decide it. From your point of view, assume you are in this position: I can individually contribute up to $57K into a traditional (pretax) 401k. How much should I contribute? Once you have your number, you have your answer. Now, the actual scenario you described is slightly ...


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I think this question really boils down to: If I over contribute to my 401k across multiple companies, can I choose which company to undo the excess contribution from? In your case, obviously you'd prefer to undo the contributions from the first company. This article suggests that you can choose: You can take the corrective distribution from any account. ....


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First off, the 6% excise tax only applies to IRAs, and also applies every year the over contribution is in the account, until you correct it. Since you're talking about a 401k, this does not apply. [Some sites mention 6% taxes for over contributing to a 401k but I can't find that in the IRS documents. The only mention I see is regarding IRAs. If someone ...


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No. Probably not. As far as losing your job is concerned - You get until tax day the following year to replace the amount — i.e., if you are laid off in April 2020, you get until April 15, 2021, to come up with the funds. Prior to major tax law changes that took effect in 2018, participants only had 60 days. Although most plans won’t let you continue paying ...


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Yes, in my opinion, you should be paying that loan off ASAP. One big reason is that if you leave your job for any reason, the loan will be due in full sometime within a year or so. If you cannot come up with the money, it will be treated as a 401(k) early withdrawal, with all the associated taxes and penalties. One thing that not everyone understands about ...


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Could it be that the board of directors wanted to have the ability to have more control over the company. Within my 401k I can not buy any more co. Stock after doing so after 20 years. I can move my shares out but can not buy them back. If the Board Was to trying to get you to diversify, why not limit the amount of shares you can own. Also, no one can buy ...


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100% Pretax. Even in the 12% bracket, a $10,000 deposit costs you $8800. When in grad school, with no income, you convert it to Roth and pay zero in tax to do so. Pretty simple. The fact that you say you will go to grad school is what makes the difference. The normal best answer to "I am starting out, and in the 12% bracket" is what D Stanley ...


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Is it worth to invest on either the 401k or the Roth? Yes (I'll discuss which you should invest in below) Will I lose that money? You won't lose what YOU contribute (other then the change in the value of whatever you invest in), but you may lose some or all of the matched funds if the company has a vesting period of more than 1 year. Most companies have a ...


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First and foremost, any money you put in, you won't lose. Any money your company puts in, you will have to check what the vesting structure is. Typical examples are: 100% at 3 years (which means unless you work for 3 full years, the company gets the money back) or 20% every year for 5 years (which means at 1 year anniversary you now get 20% of what the ...


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