401k and 403b Plans

$4,000

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Yes, you will receive a 1099-R for and IRA Rollover. Don't forget to attach to your taxes.

Generally withholdings for 401k's are tax deductible, and is already calculated on your W-2. Depending on your income level, you may receive a nonrefundable saver's credit for your retirement contributions.

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Call your 401k recordkeeper (Fidelity, Vanguard, etc). If you don't know who your recordkeeper is then call your Benefits Dept or HR Dept and they can tell you.

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Yes.as long as you do not contribute more than your annual limit.

The law (ERISA: see Dept of Labor) = within 15 days of payday. If you get a monthly salary, it should be paid in by 15th of the following month. If you get paid twice monthly, it should be paid by the date of your subsequent paycheck. Either which way, your employer is acting illegally. The whole point of an IRA is the power of dollar cost averaging. If it's not put in promptly, your employer is stiffing you on all the gains via that method - and it can be substantial!!! That's why the IRS changed this, and your employer is in non-compliance. However, if your Employer has sizeable assets, it MAY be that the money is in the Trust just not in your name yet. As its well over 180 days, the Employer is in effect getting a free loan from your paycheck. Please check with your Department of Labor in regard to this. Good luck!

Yes. But it is much better and no taxes will be withheld if you have the trustee do a direct transfer from the 401K trustee to the IRA trustee and you do not receive any of the funds in your hand.

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Employers (generally regarded as highly compensated employees) are often not eligible to participate in the plan until the "non-highly" compensated employees contribute.

To encourage the non-highly compensated employees to contribute to the plan, employers (or highly-compensated employees) will offer a match to induce participation.

This participation then allows folks with larger incomes to contribute (and obtain tax deductions thereby.)

The EIN number for Prudential is found on the tax forms. If it is not there, the accounting office for Prudential should be contacted as no one else is authorized to release that information.

You can not rollover your 401k to an IRA in your spouses name. Individual retirement accounts must stay in one person's name (yours), unless you were to pass away. At that time the monies would transfer to your named beneficiaries.

For more information on the in's and out's of rollover IRA's, please visit the link below for impartial advice and rollover guidelines.

Yes.

When an individual has front loaded his contributions to the 401k and has reached the maximum limits prior to the end of the calendar year. He has foregone the company matching on his contributions. The true-up feature, looks back to see how much the company should have matched had the employee not frontloaded his contributions and then "trues-up" the difference between what was matched and the maximum amount that could have been matched.

I have done this more than once. I believe it took me abt 2 weeks to get the check. But this will probably depend on whomever your 40lk is being managed by. There is also a 30% fed tax penalty if you don't meet the age requirement for withdrawl. 20% is taken up front and the rest you are resp for paying. Also need to ck state/local... If you are still employed with the company, you may not be able to do this. You need to check your company policy. Unless you are in complete dire straits, I don't recommend doing this.

The deferred contribution amounts will NOT be included in your the box 1 of your W-2 form as taxable income for the year that you do this.

The distributions amounts from the deferred compensation plan 401K will be subject to income in the future when you retirement at your normal retirement age and be subject to the federal income tax at your marginal tax rate.

IF you do take distributions from the 401K plan when you are under the age of 59 1/2 the taxable amount of the distribution will also be subject to the 10% early withdrawal penalty unless one of the exemption to the early withdrawal penalty is met.

401k's are not tax-deductible in the normal sense of the word.

However, since normal 401k contributions are made with pre-tax funds, taxable income is reduced. As taxable income is reduced, tax is then reduced as well.

YES the taxable amount of the distribution is added to all of your other gross worldwide income on your 1040 federal income tax return and taxed at your marginal tax rate.

If you are under the age of 59 1/2 and you do NOT meet any of the exemption form the 10% early withdrawal penalty then the 10% early withdrawal penalty will also apply to the taxable amount of the distribution.

You will get a credit for the 20% amount that was withheld from your distribution amount as an advance payment of any possible taxes that would be due. When your 1040 federal income tax return is completed correctly the withheld amount will be entered on page 2 of the 1040 income tax return line 61 Federal income tax withheld from Forms W-2 and 1099 line 61 $$$$ amount.

By withholding I will guess that you mean the amounts that you are contributing to your 401K BEFORE income taxes (deferred compensation amount) that will not be subject to the income taxes during the year and will reduce the amount of your taxable gross wage amount that is reported in box 1 of your W-2 form at the end of the tax year. The deferred contribution amounts will be subject to income tax in future years when you retire and start receiving distribution the taxable distribution amounts from your 401K plan and at that time the taxable amounts will added to all of your other gross worldwide income on your 1040 income tax return and subject to the federal income tax at your marginal tax rate.

You cannot transfer your UK pension to a 401K. However there are QROPS (Qualifying Recognised Overseas Pension Scheme - See related link below) available for residents of the USA. These Qrops meet the strict reporting requirements of the IRS and transfers to these schemes have the approval of the IRS.

Early withdrawal penalty of 10% on the taxable amount of the early withdrawal distribution amount when you are under the age of 59 1/2.

Unless you meet one of the exceptions to the early withdrawal penalty amount.

Distributions from your 401K after you reach your retirement age the taxable amount will be subject to federal income tax at your marginal tax rate and may be subject to some state income tax.