401k loans are required to be repaid unless the plan (that you took the loan from) has a provision about stopping them in the event of bankrupcy. Usually this only applies if tyou are still working for that plan sponsor. If you are no longer working for the plan sponsor, you are either having payments deducted from your checking/savings account or are sending coupons- ususally. Simply stop making the payments, and the loan will default. Default is simply a status change from "loan" to 'withdrawal". You will receive an IRS 1099 form at the end of the year so you can pay the income taxes owed and a probable 10% early withdrawal penalty tax (ask a tax preparer if you would be exempt, probably not). The loan "disappears", you have changed it to a withdrawal. It does not get reported to credit agencies, only to the IRS as regular income.
No. Never. It is exempt and protected.
all ERISA qualified retirement plans are protected from creditors in a BK.
Yes. You can roll a previous employer's 401k balance into a new employer's 401k. You can also roll a previous employer's 401k balance into an individual retirement account (IRA) if you wish to maintain control over the investments.
It's better to wait until your chapter 7 is closed, usually about 6 months after filing. The funds in the 401(k) are exempt from claims, but once you take money out of the 401(k), it is no longer exempt.
BK is a Federal thing...and 401k is exempt everywhere.
These assets should not be effected at all.
No...you must disclose it but it will be exempt.
401K money is protected from the bankruptcy trustee. So, I would not touch it at all. The only thing dumber financially than doing what your are suggesting is to take a loan against the account. YOU NEED PROFESSIONAL HELP WITH YOUR SITUATION IF YOU DON'T UNDERSTAND WHY!
NO. Absolutely fully protected...
No...your retirement in a qualified plan (like a 401k), is exempt from seizure up to any amount!
What are you possibly trying to say? (Your 401k is exempt from seizure and process in BK you know).
Your 401k plan administrator will automatically reimburse you when you make an over contribution. You will also receive a form for tax reporting.
Some benefits of filing a 401k retirement plan include Internet based plans are available, it can permit hardship withdrawals and loans, not to mention the emploter can receive some tax benefits for contributions. You can find more benefit information here: http://www.401khelpcenter.com/401k_defined.html
generally no. the only type of money that can be put into a 401k are payroll deductions, roll ins from other 401k's, traditional or Rollover IRA's and pensions. If the stock options are in one of these plans, call your plans service center to get your plans rules and procedures. It is rare for stock options to be in one of these plans. Also stock options have no real value until you exercise them (buy the stock).
Yes, there are specific comparison sites for comparing IRA and 401k plans. Some of them are: BankRate.com ; NationWide.com and MutualOfAmerica.com. For all of the previous there are online calculators that will help you with your plans.
No you can't it will be almost impossible to do so don't try to.
There is no right or wrong when it comes to when you should start saving in a 401k plan. But most of the people begun their 401k saving plan when they entered the work force. I also recommend you to save 10-15% of your income.
to get the money away from the previous employer and to continue tax-deferral
Previous Employer Total Compensation Refers to the total amount of money (Could include straight salary, bonus, value of benefits, 401k contributions) that was paid to you by your previous employer.
Your 401K account is exempt from creditors when you file BK. So leave the account alone. If you withdraw money and transfer it to another type of account, then the BK trustee can seize that money. Because of that, it is NEVER advisable to withdraw from your 401K when a BK is possible in the future.
Best chance: Make sure your 401k plan administrator files a claim as a secured creditor, which you of course won't protest.
In today’s workplace, employees have become very familair with the 401K retirement savings plan. As employer provided pensions are becoming a thing of the past, employees have to self fund their retirement savings. Saving for retirement via a 401K account is both quick and easy and signing up for your company 401K should be one of the first things done when starting a new job. In contrast to previous generations, employees now tend to be more nomadic and don’t stay with one employer for an entire career. This can lead to people having multiple 401K accounts from previous employers. Keeping up with the paperwork from the different accounts can be a nightmare. Assuming that the employee wants to keep the money in their previous 401K as tax deferred, there are two options when considering consolidating previous 401K retirement accounts. The first option is to rollover the previous employer’s 401K into your current company’s 401K plan. The second option is to convert the money from your previous employer’s 401K into an IRA. There are several reasons why converting your previous 401K money to an IRA may be the smarter decision. Research has shown that lower investment costs can lead to higher long term investment returns. This can mean extra money in your pocket at retirement time. Converting to an IRA allows you to pick an investment fund family that provides low cost investment options. Another reason to consider an IRA is not just costs, but investment options. Your current 401K might offer only a limited number of investment options. Choosing to convert to an IRA can allow you to select an investment fund family that has a wide variety of investment options including stock mutual funds, bond mutual funds, individual stocks, and ETFs or Exchange Traded Funds. Lastly, another option with an IRA that is not available with a 401K is a self directed IRA. Self directed IRA accounts allow the account holder to invest in nontraditional IRA investments, including investments in real estate, mortgage trust deeds, private equity, and tax liens. Self directed IRA accounts are not for novice investors, but they may be a reason to consider converting to an IRA versus a 401K with your retirement money.