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A 401k is a "profit sharing "plan or retirement account established by an employer to enable their employees to share in the company profits. You contribute to with pre-taxed dollars, but your employer must also contribute. Since no tax has been paid on the money when it is entered, it is subject to a income tax when it is withdrawn.
A Roth IRA is a similar retirement account, but you put dollars that have already been taxed (ie. income tax). Your contributions are not tax deductible, but the money grows tax free until the age of 59 1/2 when you can remove the amount. This account has a maximum limit you can contribute each year and a income cap. If you make more than say $150k you cannot participate that year, the income cap changes from year to year.
What else can I help you with?
How is the 401k different from the Roth ira?
There is one main difference between a 401k and a Roth IRA. The maximum contribution limit for a 401k is about three times that of an IRA.
Can you roll a Roth IRA into a 401k?
No, you cannot roll a Roth IRA into a 401k.
Can I roll my Roth IRA into a 401k?
No, you cannot roll your Roth IRA into a 401(k).
What is a cheap way to transfer my 401k to Roth ira?
First you need to do a 401k rollover to Roth account. You will need to open a Roth IRA account. Do a 401k rollover to a Roth IRA online with any brokerage firm online. If you do find a brokerage firm that wants to charge you a fee to do a 401k rollover to a Roth IRA then pick a different one. You can get more assistance or help with more information by visiting http://hubpages.com/hub/401k-rollover-to-roth-ira
Does a 401K or Roth IRA provide greater tax efficiency?
A 401k and a IRA are different. A 401k is a employer sponsored plan while a IRA is not. A Roth grows tax free, while a 401k is taxed when you withdrawl the funds.
How is the 401k different from the Roth ira?
There is one main difference between a 401k and a Roth IRA. The maximum contribution limit for a 401k is about three times that of an IRA.
Can you roll a Roth IRA into a 401k?
No, you cannot roll a Roth IRA into a 401k.
What's the difference between 401k accounts and Roth IRA accounts?
401K accounts are started through and employers. Roth IRA accounts can be started by an individual at a local bank.
Can I roll my Roth IRA into a 401k?
No, you cannot roll your Roth IRA into a 401(k).
What is a cheap way to transfer my 401k to Roth ira?
First you need to do a 401k rollover to Roth account. You will need to open a Roth IRA account. Do a 401k rollover to a Roth IRA online with any brokerage firm online. If you do find a brokerage firm that wants to charge you a fee to do a 401k rollover to a Roth IRA then pick a different one. You can get more assistance or help with more information by visiting http://hubpages.com/hub/401k-rollover-to-roth-ira
Does a 401K or Roth IRA provide greater tax efficiency?
A 401k and a IRA are different. A 401k is a employer sponsored plan while a IRA is not. A Roth grows tax free, while a 401k is taxed when you withdrawl the funds.
Can you roll over a 401k to a Roth IRA without incurring any penalties?
Yes, you can roll over a 401k to a Roth IRA without incurring penalties, but you will need to pay taxes on the amount converted from the traditional 401k to the Roth IRA.
What does IRA Roth IRA 401K and 403B have in common?
you tell me
Can you have a IRA and a Roth individial 401k?
Is your question can you have both a ROTH and Traditional IRA? If so, yes you can.
Can you roll over a 401K into a Roth IRA?
Not directly but you can roll it over to a Traditional IRA first then convert that IRA to a Roth.
Where might one find detailed information as to a Roth IRA vs a 401k?
One might find detailed information as to a Roth IRA vs a 401k at Schwab's website. Schwab offers a lot of pros and cons of having either a 401k or a Roth IRA.
Can I rollover my Roth 401k to a Roth IRA and then withdraw my contributions?
Yes, you can rollover your Roth 401k to a Roth IRA and then withdraw your contributions without penalty, as long as the account has been open for at least five years.
