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Before deciding to decrease your 401k contribution, consider your current financial situation, long-term goals, and any potential impact on your retirement savings. It's important to weigh the short-term benefits against the long-term consequences of reducing your contributions. Consulting with a financial advisor can help you make an informed decision based on your individual circumstances.
What else can I help you with?
What's the difference between Roth and a 401K?
The difference between a Roth 401k and a regular 401k is that the Roth 401K is a after-tax contribution and the regular 401K is a pre-tax contribution. You pay taxes on the Roth 401K now in order to avoid taxes at withdrawal. The regular 401 is a tax credit for the year deposited with taxes paid at the time of withdrawal.
Should I contribute to a pre-tax 401k or a Roth 401k for my retirement savings?
The decision to contribute to a pre-tax 401k or a Roth 401k depends on your current tax situation and future financial goals. A pre-tax 401k reduces your taxable income now, but you'll pay taxes on withdrawals in retirement. A Roth 401k is funded with after-tax money, so withdrawals in retirement are tax-free. Consider your tax bracket now and in retirement to decide which option may be more beneficial for you.
What is the 401k maximum contribution for 2009?
The 401(k) maximums for 2009 was established based on a cost of living adjustment. The 2009 Basic maximum 401K contribution amount is set at $16,500. Catch up contributions allow a maximum of an additional $5,500. Catch up contributions would bring the total to $22,000 but you must be 50 years old and above for the additional allowed contribution amount. The 401k Basic maximum contribution figure is also true for the 403b (used by non-profits and educational institutions). But with the 403b there is also a $40,000 "catch up" provision and a 15-year (same employer) "catch up" provision. These are a bit confusing and are best explained by to the employee by the Third Party Administrator (TPA). In 2009 the entire 403b administration rules changed, too. The basic rules are explained more thoroughly at other sites on the web, but beware of the ever changing nature of these regulations and that postings on the internet are often out-of-date. One site, money-zine, (http://www.money-zine.com/Financial-Planning/Retirement/403b-Contribution-Rules/), which came up on a search on 3-27-09 and it is fairly comprehensive, doesn't include the 401k or 403b Roth after-tax contributions that can now be made or the TPA rules. To get the 'right answer' regarding 403b contribution maximums, please do more than Google searches and reading internet information. The IRS.gov site is helpful and has specific rules, but it really takes a knowledgeable TPA to give the correct information for an individual's specific situation. Per the referenced article another important point to remember regarding your 401k maximum contribution limit - the combined total maximum contribution that you can make each year to ALL 401k plans in which you participate, including standard 401k plans and Roth 401k plans - is the lower of: (1) the maximum percentage contribution limit allowed under each of your employers' plans, or (2) the dollar limits shown in the table above. For example, if your employer's 401k plan allows you to contribute up to a maximum of 10% of your salary, and you earn $50,000, your maximum contribution limit is $5,000, not the $16,500 contribution limit in 2009 that applies only to higher-paid employees
What are the differences between contributing to a traditional 401k before tax vs a Roth 401k?
Contributing to a traditional 401k before tax means you don't pay taxes on the money you put in now, but you will pay taxes on the withdrawals in retirement. Contributing to a Roth 401k means you pay taxes on the money you put in now, but withdrawals in retirement are tax-free.
how do i get a loan against my 401k plan and pay back through my job ?
i am on long term dis-ability and would like to withdraw all my vested monies from my t rowe price 401k and i need it now i am very sick what are the steps i should take immediately thank you hi,im edna wilson i would like to borrow 400.oo my 401k pls.pay back with job.
What's the difference between Roth and a 401K?
The difference between a Roth 401k and a regular 401k is that the Roth 401K is a after-tax contribution and the regular 401K is a pre-tax contribution. You pay taxes on the Roth 401K now in order to avoid taxes at withdrawal. The regular 401 is a tax credit for the year deposited with taxes paid at the time of withdrawal.
Should I contribute to a pre-tax 401k or a Roth 401k for my retirement savings?
The decision to contribute to a pre-tax 401k or a Roth 401k depends on your current tax situation and future financial goals. A pre-tax 401k reduces your taxable income now, but you'll pay taxes on withdrawals in retirement. A Roth 401k is funded with after-tax money, so withdrawals in retirement are tax-free. Consider your tax bracket now and in retirement to decide which option may be more beneficial for you.
Where can i find a 401 k retirement plan?
Your friend should check with his employer to see if he is eligible to contribute into the company's 401k plan. If your friend is looking to retire right now, then he needs to have already contributed to a 401k plan.
What is the 401k maximum contribution for 2009?
The 401(k) maximums for 2009 was established based on a cost of living adjustment. The 2009 Basic maximum 401K contribution amount is set at $16,500. Catch up contributions allow a maximum of an additional $5,500. Catch up contributions would bring the total to $22,000 but you must be 50 years old and above for the additional allowed contribution amount. The 401k Basic maximum contribution figure is also true for the 403b (used by non-profits and educational institutions). But with the 403b there is also a $40,000 "catch up" provision and a 15-year (same employer) "catch up" provision. These are a bit confusing and are best explained by to the employee by the Third Party Administrator (TPA). In 2009 the entire 403b administration rules changed, too. The basic rules are explained more thoroughly at other sites on the web, but beware of the ever changing nature of these regulations and that postings on the internet are often out-of-date. One site, money-zine, (http://www.money-zine.com/Financial-Planning/Retirement/403b-Contribution-Rules/), which came up on a search on 3-27-09 and it is fairly comprehensive, doesn't include the 401k or 403b Roth after-tax contributions that can now be made or the TPA rules. To get the 'right answer' regarding 403b contribution maximums, please do more than Google searches and reading internet information. The IRS.gov site is helpful and has specific rules, but it really takes a knowledgeable TPA to give the correct information for an individual's specific situation. Per the referenced article another important point to remember regarding your 401k maximum contribution limit - the combined total maximum contribution that you can make each year to ALL 401k plans in which you participate, including standard 401k plans and Roth 401k plans - is the lower of: (1) the maximum percentage contribution limit allowed under each of your employers' plans, or (2) the dollar limits shown in the table above. For example, if your employer's 401k plan allows you to contribute up to a maximum of 10% of your salary, and you earn $50,000, your maximum contribution limit is $5,000, not the $16,500 contribution limit in 2009 that applies only to higher-paid employees
What are the differences between contributing to a traditional 401k before tax vs a Roth 401k?
Contributing to a traditional 401k before tax means you don't pay taxes on the money you put in now, but you will pay taxes on the withdrawals in retirement. Contributing to a Roth 401k means you pay taxes on the money you put in now, but withdrawals in retirement are tax-free.
How important is it to have a 401k?
It is more important to have ethics and a growing savings account. Now adays the 401k plans seem to be failing on people. Having 401k is a very effective way to save money for a future time.
was laid off in August of 2008I have just recently started selling insurance since I could not find other employment I am 61 and had my 401K rolled over into a traditional IRA with a local bank can I set up to draw monthly from my 401k?
You are above the age requirement of 59 1/2, so you should be able to start withdrawing from your 401k now, without incurring penalties. Talk with your 401k plan provider for more distinct information !
how do i get a loan against my 401k plan and pay back through my job ?
i am on long term dis-ability and would like to withdraw all my vested monies from my t rowe price 401k and i need it now i am very sick what are the steps i should take immediately thank you hi,im edna wilson i would like to borrow 400.oo my 401k pls.pay back with job.
Solita Collas-Monsod her contribution?
solita has any contribution but i cant tell you right now.
An object was 2.40 and is now 2.00 what is percentage decrease?
This is a 16.7% decrease.
What is the contribution of Marconi in the development of telecommunications?
is when you now
What are the differences between contributing to a pretax 401k and an after tax 401k, and how do these choices impact my retirement savings?
Contributing to a pretax 401k means you don't pay taxes on the money you put in now, but you will pay taxes on it when you withdraw it in retirement. Contributing to an after-tax 401k means you pay taxes on the money now, but won't pay taxes on it when you withdraw it in retirement. The choice impacts your retirement savings by affecting when you pay taxes on the money and how much you ultimately have available for retirement.
