401k??????
Q. what does this mean??? employer matching contribution One half of a participant's elective deferral amount up to 6% of eligible compensation that is deferred. The maximum matching contirbution, therefore is 3% of a participant's eligible compensation, Any deferrels over 6% of eligible compensation are not matched. so does that mean I can put in 3% and the company will match it 3% as well to make a maximum of 6%??? or can I make a contribution of 6% and they will match that 6% making a total of 12%??
Asked by yen - Fri Oct 13 16:55:43 2006 - - 7 Answers - 0 Comments
A. 401K is the best thing you can do to secure your financial future. It is esentially free money. Here is why: - You can put up to $15000 in for 2006 that is not taxed. That means your taxable income is reduced by the amount you put away into your 401, up to $15000. Reducing your income reduces how much taxes you pay - free money!. - Your employer is offering to "match". If you put away 1%, they out in half a %. If you put in 3%, they put in 1.5%. The most they are offering to match is 6% - you put in 6%, they put in 3%. More free money!!! These are fairly standard emplyer offerings - mine is the same. The thing is to start young. If you start when you are 25, and always put in your manximum contribution, you may very well have a… [cont.]
Answered by aaaltered468 - Fri Oct 13 17:09:06 2006
Q. what does this mean??? employer matching contribution One half of a participant's elective deferral amount up to 6% of eligible compensation that is deferred. The maximum matching contirbution, therefore is 3% of a participant's eligible compensation, Any deferrels over 6% of eligible compensation are not matched. so does that mean I can put in 3% and the company will match it 3% as well to make a maximum of 6%??? or can I make a contribution of 6% and they will match that 6% making a total of 12%??
Asked by yen - Fri Oct 13 16:55:43 2006 - - 7 Answers - 0 Comments
A. 401K is the best thing you can do to secure your financial future. It is esentially free money. Here is why: - You can put up to $15000 in for 2006 that is not taxed. That means your taxable income is reduced by the amount you put away into your 401, up to $15000. Reducing your income reduces how much taxes you pay - free money!. - Your employer is offering to "match". If you put away 1%, they out in half a %. If you put in 3%, they put in 1.5%. The most they are offering to match is 6% - you put in 6%, they put in 3%. More free money!!! These are fairly standard emplyer offerings - mine is the same. The thing is to start young. If you start when you are 25, and always put in your manximum contribution, you may very well have a… [cont.]
Answered by aaaltered468 - Fri Oct 13 17:09:06 2006
Generally speaking, do most 401k plans allow the participant to invest in individual stocks?
Q. And by individual stocks, I don't mean the company's stock. I'm talking about non-employer stocks traded on an exchange. In addition, do most 401k plans allow the participant invest in any mutual fund of his/her choice? Or do most 401k plans offer only a limited mutual fund selection? *I know plans vary. But, this is just a general question.
Asked by Yay Ah! - Sat Dec 5 16:38:55 2009 - - 5 Answers - 0 Comments
A. No, it's not always investing in stocks. It all depends on what your company offers.
Answered by Max M - Tue Dec 8 17:51:00 2009
Q. And by individual stocks, I don't mean the company's stock. I'm talking about non-employer stocks traded on an exchange. In addition, do most 401k plans allow the participant invest in any mutual fund of his/her choice? Or do most 401k plans offer only a limited mutual fund selection? *I know plans vary. But, this is just a general question.
Asked by Yay Ah! - Sat Dec 5 16:38:55 2009 - - 5 Answers - 0 Comments
A. No, it's not always investing in stocks. It all depends on what your company offers.
Answered by Max M - Tue Dec 8 17:51:00 2009
What happens to my 401k plan if I decide to leave USA and go back to Indonesia?
Q. What happens to my 401k plan if I decide to leave USA and go back to Indonesia. I have my 401k plan for about 5 yrs. What are the consequences and how should I save from getting penalised ? I am resident in USA and 35 yrs of age.
Asked by rainbow - Tue Dec 11 15:04:11 2007 - - 6 Answers - 0 Comments
A. uncle get his money up front -- if you take a payout the tax man get his the same time you get your payment!!!
Answered by mister ed - Sat Dec 15 09:37:27 2007
Q. What happens to my 401k plan if I decide to leave USA and go back to Indonesia. I have my 401k plan for about 5 yrs. What are the consequences and how should I save from getting penalised ? I am resident in USA and 35 yrs of age.
Asked by rainbow - Tue Dec 11 15:04:11 2007 - - 6 Answers - 0 Comments
A. uncle get his money up front -- if you take a payout the tax man get his the same time you get your payment!!!
Answered by mister ed - Sat Dec 15 09:37:27 2007
When your 401K fund prices are down is it good to keep putting money in?
Q. I have a target retirement fund for all my 401K money and it's down right now. If I keep adding money does it buy more shares of it so when the price goes up I do even better?
Asked by gallilea - Thu Jun 26 15:38:47 2008 - - 6 Answers - 0 Comments
A. 2008 contribution limits are $15,500 for age under 50 and $20,500 for age 50 and above. Increase your contribution as much as you can afford. Having said that you need at least 6 months of monthly expenses including any loan payments saved in cash before you put more money in your 401K. In my opinion, stock markets will stay down for next 3 years due to stagflation caused by oil crisis. So, you have time to increase your contributions gradually if you can not increase them immediately to the maximum.
Answered by jsmithlong - Thu Jun 26 21:30:04 2008
Q. I have a target retirement fund for all my 401K money and it's down right now. If I keep adding money does it buy more shares of it so when the price goes up I do even better?
Asked by gallilea - Thu Jun 26 15:38:47 2008 - - 6 Answers - 0 Comments
A. 2008 contribution limits are $15,500 for age under 50 and $20,500 for age 50 and above. Increase your contribution as much as you can afford. Having said that you need at least 6 months of monthly expenses including any loan payments saved in cash before you put more money in your 401K. In my opinion, stock markets will stay down for next 3 years due to stagflation caused by oil crisis. So, you have time to increase your contributions gradually if you can not increase them immediately to the maximum.
Answered by jsmithlong - Thu Jun 26 21:30:04 2008
401k, Can the government change the tax rate on 401k plans in the future?
Q. I know that the government has changed the distribution age several times in the past on 401k plans but I was told that the government could change the tax rate anytime and for any amount.
Asked by RJ - Mon Mar 5 11:29:47 2007 - - 7 Answers - 0 Comments
A. Tax rate? I must be missing something because 401K plans are non taxable till you withdraw the funds at 59 1/2.
Answered by Devdude - Mon Mar 5 11:35:14 2007
Q. I know that the government has changed the distribution age several times in the past on 401k plans but I was told that the government could change the tax rate anytime and for any amount.
Asked by RJ - Mon Mar 5 11:29:47 2007 - - 7 Answers - 0 Comments
A. Tax rate? I must be missing something because 401K plans are non taxable till you withdraw the funds at 59 1/2.
Answered by Devdude - Mon Mar 5 11:35:14 2007
What is the maximum yearly contribution to 401k plans?
Q. The limit for a Traditional 401k is $15,500/year, and the limit for a ROTH 401k is $4000/year. However, this year I put $3000 in my Traditional, and $1500 in my ROTH 401K, and Turbotax says I am over my legal limit. There seems to be a conflict in the tax code, so I must be misunderstanding something. Even my payroller and retirement account company are confused.
Asked by axiomflash - Mon Mar 24 18:32:29 2008 - - 3 Answers - 0 Comments
A. you are entering in your 3000 into Turbo Tax and you shouldn't. The 401k deduction is already accounted for in your net income. If you look at your w-2 you'll see that the social security income is at least $3,000 higher than the taxable amount. The difference is your 3k traditional 401k contribution. Little confused when you say $4k limit for Roth 401k. That's not true...the $4k limit is for all IRA's not 401k's. The limit for 401k's is $15.5k and can be split any way between ROTH and Traditional. Either way it's all accounted for in the w-2 and shouldn't be entered into TurboTax at all.
Answered by digdowndeepnseattle - Wed Mar 26 14:22:44 2008
Q. The limit for a Traditional 401k is $15,500/year, and the limit for a ROTH 401k is $4000/year. However, this year I put $3000 in my Traditional, and $1500 in my ROTH 401K, and Turbotax says I am over my legal limit. There seems to be a conflict in the tax code, so I must be misunderstanding something. Even my payroller and retirement account company are confused.
Asked by axiomflash - Mon Mar 24 18:32:29 2008 - - 3 Answers - 0 Comments
A. you are entering in your 3000 into Turbo Tax and you shouldn't. The 401k deduction is already accounted for in your net income. If you look at your w-2 you'll see that the social security income is at least $3,000 higher than the taxable amount. The difference is your 3k traditional 401k contribution. Little confused when you say $4k limit for Roth 401k. That's not true...the $4k limit is for all IRA's not 401k's. The limit for 401k's is $15.5k and can be split any way between ROTH and Traditional. Either way it's all accounted for in the w-2 and shouldn't be entered into TurboTax at all.
Answered by digdowndeepnseattle - Wed Mar 26 14:22:44 2008
If depleting your 401K while unemployed , any hardship criteria to offset taxes and penalties for early WD ?
Q. In order to avoid bankruptcy, during a 9 month period of unemployment, It was necessary to take early distribution monthly from 401K for income. Are there any hardship provisions for this type of "forced" early distribution?
Asked by nikkisdaddyo2000 - Wed Oct 10 12:31:47 2007 - - 4 Answers - 0 Comments
A. Early Withdrawal is subject to 10% penalty. Also the withdrawal will be taxed at your normal income tax rate. However, in some case there is no penalty on early withdrawals. *If distributions are not more than your qualified higher education expenses, *You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income. The distributions are not more than the cost of your medical insurance. *You are disabled. *You are the beneficiary of a deceased 401k owner. *You are receiving distributions in the form of an annuity. *You use the distributions to buy, build, or rebuild a first home. *The distribution is due to an IRS levy of the qualified plan. *The distribution is a qualified… [cont.]
Answered by MukatA - Wed Oct 10 13:04:55 2007
Q. In order to avoid bankruptcy, during a 9 month period of unemployment, It was necessary to take early distribution monthly from 401K for income. Are there any hardship provisions for this type of "forced" early distribution?
Asked by nikkisdaddyo2000 - Wed Oct 10 12:31:47 2007 - - 4 Answers - 0 Comments
A. Early Withdrawal is subject to 10% penalty. Also the withdrawal will be taxed at your normal income tax rate. However, in some case there is no penalty on early withdrawals. *If distributions are not more than your qualified higher education expenses, *You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income. The distributions are not more than the cost of your medical insurance. *You are disabled. *You are the beneficiary of a deceased 401k owner. *You are receiving distributions in the form of an annuity. *You use the distributions to buy, build, or rebuild a first home. *The distribution is due to an IRS levy of the qualified plan. *The distribution is a qualified… [cont.]
Answered by MukatA - Wed Oct 10 13:04:55 2007
How about a single 401k that is part of a sole proprietor business?
Q. Where do contributions for either the deductible portion or the 401k Roth portion get reported? Is there a place on the schedule C or somewhere else?
Asked by TheProfessor - Fri Oct 12 09:37:22 2007 - - 3 Answers - 0 Comments
A. Your deductible contributions go on the 1040 Line 28, not on Schedule C. Details are in IRS Pub 560 You may also be required to file Form 5500 or form 5500-EZ as a separate information return when your accumulation gets over $250,000.
Answered by ninasgramma - Fri Oct 12 14:33:27 2007
Q. Where do contributions for either the deductible portion or the 401k Roth portion get reported? Is there a place on the schedule C or somewhere else?
Asked by TheProfessor - Fri Oct 12 09:37:22 2007 - - 3 Answers - 0 Comments
A. Your deductible contributions go on the 1040 Line 28, not on Schedule C. Details are in IRS Pub 560 You may also be required to file Form 5500 or form 5500-EZ as a separate information return when your accumulation gets over $250,000.
Answered by ninasgramma - Fri Oct 12 14:33:27 2007
What is the procedure to use my 401k funds to pay for my college expenses ?
Q. I am planning to work in my current position for two years and then go to school for a full time MBA graduate degree. Can I contribute to my company's 401k plan now and then withdraw the amount after 2 years to fund my college expenses without being subjected to the additional 10% penalty ? For this to happen, do I have to roll over the 401k savings to an IRA first, and then make the withdrawal for college expenses ? Are there any expenses involved in this process ?
Asked by chemist - Tue Sep 16 00:52:09 2008 - - 1 Answers - 0 Comments
A. The easiest thing to do would be to roll over the 401(k) into an IRA. Not all 401(k)'s offer hardship withdrawals (all IRAs do) and you may still be subject to the 10% penalty under the 401(k) (but not under the IRA). Also, check your company's vesting schedule. If you are not vested within two years, there is no advantage to contributing to the 401(k) as your withdrawal will be taxed at ordinary income levels (though going full time may lower your tax bracket, saving you a little money) and you will not receive the employer match.
Answered by Steve D - Tue Sep 16 01:02:51 2008
Q. I am planning to work in my current position for two years and then go to school for a full time MBA graduate degree. Can I contribute to my company's 401k plan now and then withdraw the amount after 2 years to fund my college expenses without being subjected to the additional 10% penalty ? For this to happen, do I have to roll over the 401k savings to an IRA first, and then make the withdrawal for college expenses ? Are there any expenses involved in this process ?
Asked by chemist - Tue Sep 16 00:52:09 2008 - - 1 Answers - 0 Comments
A. The easiest thing to do would be to roll over the 401(k) into an IRA. Not all 401(k)'s offer hardship withdrawals (all IRAs do) and you may still be subject to the 10% penalty under the 401(k) (but not under the IRA). Also, check your company's vesting schedule. If you are not vested within two years, there is no advantage to contributing to the 401(k) as your withdrawal will be taxed at ordinary income levels (though going full time may lower your tax bracket, saving you a little money) and you will not receive the employer match.
Answered by Steve D - Tue Sep 16 01:02:51 2008
What's a good 401K allocation mix for these current times for a 45 year old person?
Q. We recently got a new 401K and need to decide our allocation mix between large caps, foreign and bonds. Not sure if I should take the current economic situation into consideration or just stay the course. Thanks!
Asked by Emily Dew - Mon Jan 28 20:05:18 2008 - - 4 Answers - 0 Comments
A. You should not take the current economic situation into consideration. A 401k is a long term investment. You still have about 20 years until retirement. Dont invest for the long term, with a short term view. You should have about the same percentage as your age invested in bonds, and the rest in equities, with about 20 percent or so in international equities. But the percentages depend on your other assets, other income you will have at retirement and your risk tolerance.
Answered by jeff410 - Mon Jan 28 20:14:08 2008
Q. We recently got a new 401K and need to decide our allocation mix between large caps, foreign and bonds. Not sure if I should take the current economic situation into consideration or just stay the course. Thanks!
Asked by Emily Dew - Mon Jan 28 20:05:18 2008 - - 4 Answers - 0 Comments
A. You should not take the current economic situation into consideration. A 401k is a long term investment. You still have about 20 years until retirement. Dont invest for the long term, with a short term view. You should have about the same percentage as your age invested in bonds, and the rest in equities, with about 20 percent or so in international equities. But the percentages depend on your other assets, other income you will have at retirement and your risk tolerance.
Answered by jeff410 - Mon Jan 28 20:14:08 2008
Can I xfer money from 401k with present employer to a IRA while still contributing to 401k?
Q. I am currently contributing to my 401k plan at my present job. I don't like the choices they give me and the brokerage plan charges $18 per trade and $100 a year maintenance fee. Can I continue to fund the 401k plan and transfer the moneys to a Roth IRA or similar plan at another brokerage?
Asked by 401help - Fri Nov 2 23:04:30 2007 - - 2 Answers - 0 Comments
A. No, you cannot. What you should do is get a group of employees together to complain to your human resources department. Explain why you think the choices in the current plan are not adequate and suggest changes they should make. Good luck.
Answered by The Professor - Fri Nov 2 23:44:36 2007
Q. I am currently contributing to my 401k plan at my present job. I don't like the choices they give me and the brokerage plan charges $18 per trade and $100 a year maintenance fee. Can I continue to fund the 401k plan and transfer the moneys to a Roth IRA or similar plan at another brokerage?
Asked by 401help - Fri Nov 2 23:04:30 2007 - - 2 Answers - 0 Comments
A. No, you cannot. What you should do is get a group of employees together to complain to your human resources department. Explain why you think the choices in the current plan are not adequate and suggest changes they should make. Good luck.
Answered by The Professor - Fri Nov 2 23:44:36 2007
Can I withdraw from my 401k without penalty to fund my college tuition?
Q. I am planning on working for a couple of years before going to school for a regular MBA. Can I contribute to my 401k plan now and withdraw it without penalty to fund my college tuition? Or is it better to take the tax hit now, rather than take the penalty later ?
Asked by chemist - Thu Sep 11 21:13:07 2008 - - 2 Answers - 0 Comments
A. If you leave your current job before going to school, and you do a direct rollover from your 401k to an IRA, you can use the proceeds for qualified higher education expenses. You will have to pay regular income tax but not the premature distribution penalty. If you anticipate that your income will be less while you're a student, then it is probably to your advantage to take the deduction now and pay regular income tax on the proceeds later when you might be in a lower tax bracket. MADMAN is incorrect regarding the premature distribution penalty. On page 53 of the IRS Publication 970, it states that you can withdraw from your IRA without the penalty if you use the proceeds for qualified higher education expenses in the year that you… [cont.]
Answered by doreen k - Thu Sep 11 21:27:30 2008
Q. I am planning on working for a couple of years before going to school for a regular MBA. Can I contribute to my 401k plan now and withdraw it without penalty to fund my college tuition? Or is it better to take the tax hit now, rather than take the penalty later ?
Asked by chemist - Thu Sep 11 21:13:07 2008 - - 2 Answers - 0 Comments
A. If you leave your current job before going to school, and you do a direct rollover from your 401k to an IRA, you can use the proceeds for qualified higher education expenses. You will have to pay regular income tax but not the premature distribution penalty. If you anticipate that your income will be less while you're a student, then it is probably to your advantage to take the deduction now and pay regular income tax on the proceeds later when you might be in a lower tax bracket. MADMAN is incorrect regarding the premature distribution penalty. On page 53 of the IRS Publication 970, it states that you can withdraw from your IRA without the penalty if you use the proceeds for qualified higher education expenses in the year that you… [cont.]
Answered by doreen k - Thu Sep 11 21:27:30 2008
How do you have your 401K currently invested among stocks, bonds, and cash?
Q. Please give your age as well as the percentage breakdown of stocks, bonds, and cash in your 401K. Myself, I am 31 years old and am 50% bonds and 50% cash and 0% stocks. I am trying to get a sampling of how others are investing their company retirement plans. Thanks.
Asked by Matthew Smit - Fri Jan 30 18:52:56 2009 - - 2 Answers - 0 Comments
A. I no longer have a 401k. It is all in IRA accounts now. 30% cash, 30% bonds, 40% equities. I am retired. At one time there was a higher % in equities, but that portion of the portfolio has suffered something of a relapse.
Answered by muncie birder - Fri Jan 30 20:05:32 2009
Q. Please give your age as well as the percentage breakdown of stocks, bonds, and cash in your 401K. Myself, I am 31 years old and am 50% bonds and 50% cash and 0% stocks. I am trying to get a sampling of how others are investing their company retirement plans. Thanks.
Asked by Matthew Smit - Fri Jan 30 18:52:56 2009 - - 2 Answers - 0 Comments
A. I no longer have a 401k. It is all in IRA accounts now. 30% cash, 30% bonds, 40% equities. I am retired. At one time there was a higher % in equities, but that portion of the portfolio has suffered something of a relapse.
Answered by muncie birder - Fri Jan 30 20:05:32 2009
How old must you be to enroll in a 401k within your company?
Q. Hi all! My son's girlfriend is only 19 and her company has a 401k program. She was told that she can not contribute until she is 21. They live in Illinois. Does anyone know if there are age restrictions on beginning a 401K? Thanks in advance for your answers!
Asked by zonagal43 - Tue Oct 21 13:55:32 2008 - - 7 Answers - 0 Comments
A. The statutory eligiblty set by the IRS for 401(k) plans is 1 year of service (defined as working more than 1000 hours) and age 21. The plan must also provide two entry dates, one at the the beginning of the plan year or six months following the completion of the requirements . From there companies can pick their own eligiblity requirements, as long as it does not exceed the IRS statutory.
Answered by Emo - Wed Oct 22 15:36:10 2008
Q. Hi all! My son's girlfriend is only 19 and her company has a 401k program. She was told that she can not contribute until she is 21. They live in Illinois. Does anyone know if there are age restrictions on beginning a 401K? Thanks in advance for your answers!
Asked by zonagal43 - Tue Oct 21 13:55:32 2008 - - 7 Answers - 0 Comments
A. The statutory eligiblty set by the IRS for 401(k) plans is 1 year of service (defined as working more than 1000 hours) and age 21. The plan must also provide two entry dates, one at the the beginning of the plan year or six months following the completion of the requirements . From there companies can pick their own eligiblity requirements, as long as it does not exceed the IRS statutory.
Answered by Emo - Wed Oct 22 15:36:10 2008
What do I do with a 401k from a job I'm leaving to go back to school?
Q. I'm already planning on opening an IRA at the maximum amount. So what do I do with my 401k if I'm leaving my job to go back to school and won't be able to roll it over to another employers plan?
Asked by Donkeyshane - Thu Jun 12 14:53:38 2008 - - 9 Answers - 0 Comments
A. Roll it over to a traditional IRA. It doesn't matter how much money you have in your 401k you can alway move it to an IRA, and still max-out you IRA. Never roll money over to another employers plan. Legally the money in your employer's retirement plan for as long as it stays in their retirement plan is their money not yours, and they are allowed take that money without your authorization (although very unlikely to happen).
Answered by Rigo C - Thu Jun 12 15:14:16 2008
Q. I'm already planning on opening an IRA at the maximum amount. So what do I do with my 401k if I'm leaving my job to go back to school and won't be able to roll it over to another employers plan?
Asked by Donkeyshane - Thu Jun 12 14:53:38 2008 - - 9 Answers - 0 Comments
A. Roll it over to a traditional IRA. It doesn't matter how much money you have in your 401k you can alway move it to an IRA, and still max-out you IRA. Never roll money over to another employers plan. Legally the money in your employer's retirement plan for as long as it stays in their retirement plan is their money not yours, and they are allowed take that money without your authorization (although very unlikely to happen).
Answered by Rigo C - Thu Jun 12 15:14:16 2008
What happens if you cash your 401K and run away forever?
Q. What if, in the hypothetical case, I cashed my 401K, paid nothing to the IRS and ran away to a foreign country to never come back to the US?
Asked by zaxxon - Sun Aug 19 18:33:14 2007 - - 3 Answers - 0 Comments
A. Probably not much, but if you ever did want to come back, you'd owe a ton of interest and penalties in addition to the original tax amount. Some countries do have treaties that would allow the IRS to track you down there, but it wouldn't be very likely to happen.
Answered by Judy - Sun Aug 19 20:40:23 2007
Q. What if, in the hypothetical case, I cashed my 401K, paid nothing to the IRS and ran away to a foreign country to never come back to the US?
Asked by zaxxon - Sun Aug 19 18:33:14 2007 - - 3 Answers - 0 Comments
A. Probably not much, but if you ever did want to come back, you'd owe a ton of interest and penalties in addition to the original tax amount. Some countries do have treaties that would allow the IRS to track you down there, but it wouldn't be very likely to happen.
Answered by Judy - Sun Aug 19 20:40:23 2007
How can I withdraw 401K with Penalty or taxes to purchase investment property?
Q. I would like to withdraw funds to purchase and investment property from my 401k. the 401K is with an old employer. What is the best way to get the funds without being penalized or paying taxes? Someone told me to transfer to an IRA account. Is that true? OK, I am 35 and married.
Asked by Pablo - Sat Aug 15 17:34:45 2009 - - 4 Answers - 0 Comments
Q. I would like to withdraw funds to purchase and investment property from my 401k. the 401K is with an old employer. What is the best way to get the funds without being penalized or paying taxes? Someone told me to transfer to an IRA account. Is that true? OK, I am 35 and married.
Asked by Pablo - Sat Aug 15 17:34:45 2009 - - 4 Answers - 0 Comments
Can I deduct from my 401K to pay taxes due to the IRS without a penalty?
Q. I owe the IRS 7K for taxes this year. The money I owe is for taking an early withdrawal from our 401K to fix the bathroom. I'm not sure it counts as a hardship, but the bathroom was mold infested and needed to be gutted everything replaced. Can i take more money out of my 401K to pay the taxes due and not have to incurr another penalty?
Asked by kimberly03051 - Mon Mar 3 10:51:20 2008 - - 8 Answers - 0 Comments
A. Taking money from your 401k means double tax. You get taxed everytime you borrow. Remember when you pay it back and take it during retirement, you get taxed again!
Answered by ediblues - Mon Mar 3 10:57:10 2008
Q. I owe the IRS 7K for taxes this year. The money I owe is for taking an early withdrawal from our 401K to fix the bathroom. I'm not sure it counts as a hardship, but the bathroom was mold infested and needed to be gutted everything replaced. Can i take more money out of my 401K to pay the taxes due and not have to incurr another penalty?
Asked by kimberly03051 - Mon Mar 3 10:51:20 2008 - - 8 Answers - 0 Comments
A. Taking money from your 401k means double tax. You get taxed everytime you borrow. Remember when you pay it back and take it during retirement, you get taxed again!
Answered by ediblues - Mon Mar 3 10:57:10 2008
Who should I go to rollover a 401K into a growth stock mutual fund?
Q. I am looking for an agency to take my 401K to but unsure of where to start but I know I want to put it into a growth stock mutual fund. Should I withdraw my funds first or contact (insert name here)? Thanks!
Asked by Angela C - Mon Feb 4 16:42:38 2008 - - 3 Answers - 0 Comments
A. If your money is in a company sponsored 401(k), then you should have access to a growth stock mutual fund. Just ask you sponsor to buy a growth fund.
Answered by William H - Mon Feb 4 17:22:34 2008
Q. I am looking for an agency to take my 401K to but unsure of where to start but I know I want to put it into a growth stock mutual fund. Should I withdraw my funds first or contact (insert name here)? Thanks!
Asked by Angela C - Mon Feb 4 16:42:38 2008 - - 3 Answers - 0 Comments
A. If your money is in a company sponsored 401(k), then you should have access to a growth stock mutual fund. Just ask you sponsor to buy a growth fund.
Answered by William H - Mon Feb 4 17:22:34 2008
How long does it take to get 401K disbursement for under 59 1/2 year old, hardship withdrawal once filed?
Q. My husband has been out of work and we have separate 401k plans but need to take a lump sum from his plan to help with the bills or we won't have a place to live. 1. How long does this process take? 2. We want to opt for the 10% and 20% tax and penalty to be taken out before the disbursement. Will we be taxed or penalized again on it when we file our taxes?
Asked by Concerned - Thu Apr 24 09:44:43 2008 - - 4 Answers - 0 Comments
A. Ask the trustee of the 401K plan how long it will take - each one is different. They should be able to give you a good idea on when you'll get the check. The amount taken out for tax is just withholding, like the amount taken out of your regular paychecks. If you have the 20% plus the 10% penalty taken out, and your tax bracket is less than 20%, you could end up getting some of it refunded to you since you'd owe less than what was withheld. If your tax bracket was more than 20%, then you could owe more Good luck.
Answered by Judy - Thu Apr 24 09:57:38 2008
Q. My husband has been out of work and we have separate 401k plans but need to take a lump sum from his plan to help with the bills or we won't have a place to live. 1. How long does this process take? 2. We want to opt for the 10% and 20% tax and penalty to be taken out before the disbursement. Will we be taxed or penalized again on it when we file our taxes?
Asked by Concerned - Thu Apr 24 09:44:43 2008 - - 4 Answers - 0 Comments
A. Ask the trustee of the 401K plan how long it will take - each one is different. They should be able to give you a good idea on when you'll get the check. The amount taken out for tax is just withholding, like the amount taken out of your regular paychecks. If you have the 20% plus the 10% penalty taken out, and your tax bracket is less than 20%, you could end up getting some of it refunded to you since you'd owe less than what was withheld. If your tax bracket was more than 20%, then you could owe more Good luck.
Answered by Judy - Thu Apr 24 09:57:38 2008
From Yahoo Answer Search: '401k'
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businessweek.com
Sat, 21 Aug 2010 05:26:14 GMT+00:00
BusinessWeek T. Rowe Price No-load mutual funds and 401k rollover. Get Started Now. Internet Marketing Master's Degree Learn Effective Internet Marketing Strategies ...
foxnews.com
Tue, 01 Jul 2008 00:00:00 PDT
Is it time to cut back on your contributions during a bear market?. foxnews.com.
savings.com
Kent_Thune
hu, 26 Aug 2010 05:09:36 GM
Taking withdrawals and borrowing money from employer-sponsored retirement plans, such as the . 401(k. ), made headlines last week when Fidelity (the leading retirement services provider) reported that employees withdrew money from their ...
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