401k and 403b Plans

Yes, this is legal. The company has previously established eligibility requirements for the account that have been approved by the Internal Revenue Service and the Department of Labor. Some companies may do this based open length of employment with the company or hours worked or both.

There is no minimum...It can be determined by the people who are managing your company's plan if they want to require one.

The penalty for an early withdrawal is 10% x 6500 would be 650 plus the federal income tax that may be due on the taxable amount of the distribution at your marginal tax rate.

Typically, you're able to withdrawal from a 401k if you're atleast Age 59 1/2 and older or if you're no longer employed with the Company that the 401k you were contributing to belongs to. However, some companies offer in-service withdrawals. Those are typically withdrawals from monies that you contributed on an after-tax basis, withdrawals from monies that your employer contributed on your behalf into the plan, and hardship withdrawals. Hardship withdrawals typically require you to complete a Hardship Withdrawal Application and send it in with proof of your hardship need. The qualifying reasons for a harship are typically: Prevention of eviction/foreclosure, Unreimbursed medical expenses, Post Secondary Education, Funeral/Burial expenses, Repair to your primary residence that qualifies as a casualty deduction expense for tax purposes, or Purchase of a primary residence. Some companies may honor other reasons as being a Qualified Hardship Reason. The best way to know if you're able to take a withdrawal from your 401k would be to contact your Plan Administrator or Reference your Summary Plan Description.

Custodian has passive control vs. a trustee who can invest, funds etc.

No.

If u don not contribute to 410K plan..can i still borrow money from what the company puts i

Yes. An individual may make IRA contributions to both a Roth and aTraditional IRA, providing the combined contribution total does not exceed the contribution limit for the year.

yes

if i am getting unemployment benefits in florida and take money from my 401k does that disqualify me from unemployment benefits

No. They can tax it if you withdraw from it, but borrow no.

You can have some income tax withheld from the distribution amount are you can choose to make some quartely estimated tax payments or you can wait until you file your income tax in the next year after the year that you receive the distribution amount by the due of your income tax for the previous year return and pay the full amount of taxes at that time.

A calender year taxpayer the due date for filing and paying any amount owed would be April 15 of the next year

I would say that there is more of a connection than you realize. A child?

Yes. One of the exclusions to the 10% penalty is if you're receiving these monies as a beneficiary or a QDRO recipient. (QDRO - Qualified Domestic Relations Order. Recieved from a divorce settlement.)

You should have $260,000 in when you are 40.

Some companies have what is called "Automatic enrollment." Basically, with in so many days of your hire date they automatically enroll you into the 401k plan and place you in a default investment. You have the option to opt out of the automatic enrollment but, you do not have the option to "forbid" an employer to enroll you. Typically, if you're automatically enrolled and you neglect to opt out, You are not able to withdrawal the funds in the account until you're 59 1/2 years old or terminated. Keep in mind that some companies do automatic enrollment annually and just because you opt out once does not mean that's final. They're required to send you notification in the mail to make you aware of the automatic enrollment, so be sure not to through anything away without reading it.

16500

Looks like the IRS just released the 401k max contributions for next year. Unfortunately they're staying the same at $16,500. Inflation is to blame, or rather lack thereof. Which is too bad for all us prodigious savers!

Yes. When you obtain the age of 70 1/2 years old, the IRS requires that you begin taking portions of your account balance depending on life expectancy. (This is referred to as your RMD or Required Minimum Distribution) Your plan's record keeper will typically send you notifications in the mail to let you know what you're required to take.

minimal assistance from gov

You would not want to do this in any way. The Roth would be taxed is as a distribution including penalties.

No - When you're completing a rollover to a new plan, whether it be an IRA, 403B, 457, or 401K, it is considered to be a "Lump Sum Distribution" of the account. When you take a "Lump Sum Distribution" it automatically defaults the loan on your 401K. "Default" means that it is reported to the IRS as a taxable distribution - So you will be subject to tax and possible penalties on the portion of money not payed back as well as accrued interest.

401K accounts are regulated by the IRS. Typically, you're not able to withdrawal the funds in the account unless you're 59 1/2 years old or terminated from the employer you established the 401K with. Some 401Ks allow you to take a hardship withdrawals. The criteria for the hardship withdrawal is typically, but not limited to, Eviction/Foreclosure, Medical Expenses, College Tuition, Funeral/ Burial Expenses and Purchase of a primary residence.

The standard withholding on all withdrawals for 401k plans is 20%. There are two exlcusions to this and that is Required Minimum Distributions and Hardship Withdrawals. In addition, some plans also allow you to choose your withholding amounts on installment payments. Therefore, you can elect to have less than 20% withheld on installments.