30
votes
What is the point of ATM transaction limits?
It's rather common for an ATM to only be stocked with $20s and lower (or even with nothing but $20s). That means your $200 transaction limit might actually be a more customer-friendly way of saying ...
- 2,416
25
votes
Accepted
What is the point of ATM transaction limits?
Likely only your bank can answer this for sure, but I think we can make an educated guess as to some reasons for this. All of these ideas assume that it's in the bank's best interest to limit the ...
- 47.1k
22
votes
Accepted
Why are there income limits for Roth IRAs?
Because Congress said so. Now, if you're asking for the legislators' rationale, it's something along the lines of:
We only create tax shelters when we "need" to; otherwise we just make our deficit ...
- 510
21
votes
How does one get the 401(k) max contribution of 57K?
I think the currently accepted answer misses the most typical way that larger contributions can be made. The $19.5k limit applies to employee pre-tax and Roth contributions. Employee after-tax ...
- 29.4k
20
votes
cosign a car loan, what is true $ risk
You asked:
In a unlikely case of my friend not paying the car, I suppose the bank
will use the lien and will sell the car first and will ask me to pay
any difference.
No. If your friend does ...
- 32.4k
18
votes
What is the point of ATM transaction limits?
i used to work for an institution that did this. it was because the per-transaction limit and the per-day limit were controlled in separate systems. they could raise the per-day limit on the card ...
- 2,992
17
votes
Does employer matching count toward the yearly 401(k) limit?
Employer contributions do not count toward the individual contribution limit, which for 2017 is, 18K.
However they do count toward the combined contribution limit, which for 2017, is 54K.
See this ...
- 75.7k
16
votes
Accepted
If I have a 401k for a partial year can I still contribute the maximum amount?
I moved from a job that did not have a 401k plan to a job that does
have a 401k plan. I have not contributed to any other IRA or 401k so
far this year.
Because you have not contributed any money ...
- 133k
14
votes
cosign a car loan, what is true $ risk
Your question seems to be based on an incomplete understanding of the mechanics of how banks pursue loans when things go poorly. I'm saying this because of they way you described the situation here:
...
- 17k
13
votes
Accepted
How does one get the 401(k) max contribution of 57K?
Employers can offer matches more than 100%, and can also offer contributions that are not tied to your contributions. This increases participation without forcing employees to contribute, which helps ...
- 129k
13
votes
Accepted
Why are excess HSA/IRA/401k/etc contributions allowed?
Some institutions enforce the limits, some don’t.
However, one aspect that you may not realize is that they really don’t know what your contribution limits are. Lots of things affect your contribution ...
- 115k
10
votes
Why are there income limits for Roth IRAs?
A Roth IRA is still a tax shelter. It allows for tax-free gains.
- 179
10
votes
Can I cosign a car loan up to a limited amount?
No. No lender is going to touch such a weird deal, because it breaks all their risk models.
Further, it doesn't work like that. The usual bad outcome is blam, suddenly there's a rather bad mark ...
9
votes
Accepted
When calculating Roth IRA contribution limit, is MAGI for previous or current year used?
The Roth IRA contribution income limit is based on the current year (2019)'s MAGI. If you are not sure whether you will be over the limit or not, you can 1) wait until January 1 - April 15 of 2020 to ...
- 16.9k
7
votes
Accepted
IRA yearly contribution limit
are you allowed to open multiple IRAs?
Yes - but the contribution limit applies to all IRAs in total, so you cannot go over that limit by contributing to multiple IRAs.
I was curious what people ...
- 129k
6
votes
Accepted
Closing credit card to increase limit on another
If the cards are with different banks, this is likely to make things worse instead of better, because it will cause your total card utilization to go up and alter the average age of open accounts.
...
- 2,905
6
votes
Accepted
Max Contribution to IRA, Roth, and Both
When they say your total contributions do they mean combined
traditional and Roth IRA, or do they mean traditional, separate, Roth
separate?
Yes, they mean that the amount you contribute to ...
- 16.9k
6
votes
Accepted
How are contribution limits enforced on Roth IRAs for people with high income?
It is enforced long before distribution time.
By May 31st of each year the trustee sends a copy of IRS form 5498 to you, they also send a copy to the IRS. This form tells the IRS that you made an ...
- 133k
6
votes
Can I cosign a car loan up to a limited amount?
My rule is very simple: If you have the money and want to give it to your friend, give him the money. If you don’t have the money, or don’t want to give it to your friend, don’t give him the money. ...
- 22.3k
6
votes
Accepted
Does your 401k provider stop you when you hit your max?
Does your 401k provider stop you when you hit your max?
Here is a bogleheads discussion on the topic. Apparently different employers do different things.
https://www.bogleheads.org/forum/viewtopic....
- 50.5k
5
votes
Why would someone want to contribute post tax to a 401k?
Back in the day when it wasn't possible to see your balance everyday or make changes every paycheck it was much more difficult to hit the max contribution exactly. We could only tell them what percent ...
- 133k
5
votes
Accepted
Why do employer contributions count against HSA limits?
am I comparing apples and oranges?
Yes - different purposes, different laws, different regulations. One rationale could be that HSA benefits are immediate while retirement benefits are deferred, so ...
- 129k
5
votes
Accepted
401(k) lump sum distribution limited because of highly compensated employees?
It's legal. In fact, they are required to do this, assuming you are in fact a HCE (highly compensated employee) to avoid getting in trouble with the IRS. I'm guessing they don't provide documentation ...
- 763
5
votes
Accepted
What are the limits for 401k and Roth IRA contributions and if I can catch up for the years missed?
While pretax 401k's and Roth IRAs are popular, there are also Roth 401k's and pretax (traditional) IRAs. Limits are separate for 401k's (up to $19k in 2019) and IRAs (up to $6k), but apply across ...
- 29.4k
5
votes
Accepted
Can I contribute to two different calendar years in an IRA?
Are you sure it's actually 2020 and 2021 instead of 2019 and 2020? If yes, then I would contact your broker because I believe it is a bug in their software and/or a misprint. Right now you should be ...
- 47.1k
5
votes
Accepted
Roth IRA conversion and income limit
No, the Roth IRA income limit for contributions is based on current year MAGI. The previous year's MAGI has no impact.
- 15.2k
5
votes
Why a relatively low limit for ACH transfers?
First off, ACH transfers can go from any person's account to any other person's account (well, within the US). So there is no guarantee that transfers are only going between accounts controlled by ...
- 25.7k
4
votes
Why are there income limits for Roth IRAs?
Roth contributions are after tax, but the earnings thereafter are tax-free. So, the government doesn't permit high earners to take advantage of this and shelter their earnings from taxes this way. ...
- 35.7k
4
votes
Why is the total 401(k) contribution limit (employee + employer) so high?
Some 401k plans allow you to make "supplemental post-tax contributions". basically, once you hit the pre-tax contribution limit (17.5k$ in 2014), you are then allowed to contribute funds on a post-tax ...
- 2,992
Only top scored, non community-wiki answers of a minimum length are eligible