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401k and 403b Plans
Tax-deferred savings plans. In the case of Roth 401(k) plans, withdrawals are tax-free whereas contributions to standard 401(k) plans are pre-tax and profits are taxable at the time of withdrawal.
938 Questions
What is the 2010 max contribution rate for 401k?
There is a limit on the amount of elective deferrals that you can contribute to your traditional or safe harbor 401(k) plan.
- The limit is $16,500 for 2010.
- The limit is subject to cost-of-living increases after 2010.
Generally, all elective deferrals that you make to all plans in which you participate must be considered to determine if the dollar limits are exceeded.
Limits on the amount of elective deferrals that you can contribute to a SIMPLE 401(k) plan are different from those in a traditional or safe harbor 401(k).
- The limit is $11,500 for 2010.
- The limit is subject to cost-of-living increases after 2010.
Although, general rules for 401(k) plans provide for the dollar limit described above, that does not mean that you are entitled to defer that amount. Other limitations may come into play that would limit your elective deferrals to a lesser amount. For example, your plan document may provide a lower limit or the plan may need to further limit your elective deferrals in order to meet nondiscrimination requirements.
Catch-up contributions. For tax years beginning after 2001, a plan may permit participants who are age 50 or over at the end of the calendar year to make additional elective deferral contributions. These additional contributions (commonly referred to as catch-up contributions) are not subject to the general limits that apply to 401(k) plans. An employer is not required to provide for catch-up contributions in any of its plans. However, if your plan does allow catch-up contributions, it must allow all eligible participants to make the same election with respect to catch-up contributions.
If you participate in a traditional or safe harbor 401(k) plan and you are age 50 or older:
- The elective deferral limit increases by $5,500 for 2010.
- The limit is subject to cost-of-living increases after 2010.
If you participate in a SIMPLE 401(k) plan and you are age 50 or older:
- The elective deferral limit increases by $2,500 for 2010.
- The limit is subject to cost-of-living increases after 2010.
Can an employer stop matching contributions?
Yes, unless you have an employment contract stating otherwise.
Can you rollover a 401K Plan to a simple IRA?
You can rollover a 401k to any type of IRA account that is geared towards retirement. (Education IRA's do not apply).
A simple IRA is no different, and you can do a direct rollover to this account without incurring any type of taxes or penalties. However, use caution when doing the transfer, as you can be penalized up to 40% if it isn't done correctly. (You would have to pay ordinary income tax plus a 10% penalty)
eRollover.com has some great articles on the topic, and can be found at the link below.
The fact that it is a 401k check is irrelevant in determining a hold. It depends on your account history, the bank the check is drawn upon (same bank as yours or another bank; local bank or non-local bank), and whether the bank feels it would have other reasons to hold the check as permitted by government regulations.
Does a 401k early withdrawal have to be counted as earned income?
Yes it is income, plus you will be assessed a penalty.
What is the 401k compensation limit for 2010?
The annual compensation limit for 2010 401k's is $245,000.
This generally means that match amounts may be limited to the match rate multiplied times the compensation limit.
Contribution limits for 2010 are set at $16,500. However, contribution limits for individuals 50-years old and older get an extra $5,500 catch-up contribution to defer.
What happens if you are unable to pay back a loan on your 401K plan?
then
the distribution amount will be counted as income to you for that yr, you will be receiving 1099 form
He may, but the funds in the 401K, as well as any other assets he has, are subject to a lien by the State to collect the past-due support.
How do I go about getting a lien if he lives in another state??
Contact the child support agency in your state; they can coordinate this with the child support agency in his state. Be insistent/persistent. Good luck!
If you do not contribute to your 401-k can you contribute to an IRA?
You can contribute to both a 401K and an IRA at the same time (same year).
Is it legal for employer to withhold 401k contributions from check but not pay them in to your 401k?
Yes. When monies are deducted from your paycheck they are supposed to be sent to a trust company to protect them. The reason for the trust company to hold them is so no one has access to your funds, but you. You will definitely want to submit your paystubs to your plan administrator to determine the discrepancy.
Can you own more than one 401k?
Yes. As long as your employer allows you to leave monies in your prior 401k upon separation of service you can participate in as many as you like. I would suggest that you roll them all into one plan to keep track of your investments and better determine retirement forecast.
Where can you get a retirement plan?
Retirement plans are offered by many financial institutions in India. Each have their own sets of feature benefits and eligibility criteria. The ideal age to enter the plan is 18 to 60 years. Future Generali provides one of the <a href="http://www.futuregenerali.in/LifeInsurance/Individual/RetirementPlans/FutureGeneraliPensionPlan.aspx">best retirement plans in India</a>. You can check with them if their offerings suit your needs.
401k when your work closes how long do you have to wait to get your money?
It normally takes your plan administrator 2-3 weeks to receive the notification on non-employment. They may require a specific wait period before a lump sum distribution is permitted. This information would be discussed in your Summary Plan Description.
What are after tax contributions?
After-tax contributions are contributions that come out of your net pay, rather than the gross pay. They have already been taxed and will not be required to be taxed again however, the earnings on after-tax contributions are subject to taxes and penalties.
How do you withdraw money from 401k account after you quit your job with a loan that is outstanding?
Most plans allow you to do the lump sum distribution irregardless. You will just want to be mindful that you're going to be taxed on both the account balance and the outstanding loan.
What is the maximum 403b contribution for 2010?
The 402g limit (Pre-tax deferral Maximum) for 2010 is $16,500.
Is money from 401k considered income for the year?
Withdrawals from 401k accounts are added to your general income for that tax year.
When barrowing from your 401k the maximum number of loan initiations has been reached?
Depends on the company, Most will allow 2 and up to 50% of vested value to be loaned.
If one left company with money in 401k can it be retrieved years later?
Yes, those monies are held in a trust company for your benefit only. You're the only person who can access them.
Can an employer take out 401k on a severance package after you cancelled your 401k?
(a) Your unemployment benefits depends on how your severance package is being paid out. If you get lump sum severance, then you are good shape for immediate benefits. But if your ex-company keeps you on payroll until the end of your severance period, then your unemployment benefits MAY not kick-in until you exhaust your severance.
(b) I don't think any (early) withdrawal from your 401(k) affects your unemployment benefits - because it is not "earned
income". Only earned income may affect your benefit.
(c) You may be getting the 401(k) match mixed up. Company "match" does not reduce your paycheck - it doesn't affect your paycheck. But be careful about the company match - don't plan for it unless you are sure it is already "vested". Company matches will show up in your 401(k) balance, but it MAY not be yours until vested. Most companies do not automatically vest the match when there is employment separation.
What happens to your husbands 401K if company no longer is in business?
You have to rollover the 401k to an IRA (individual retirement account). You can typically do this with the bank providing the 401k. If not, you can have the bank transfer funds directly to the new bank where you setup the IRA.
The final option is having the 401k bank send you a check in the mail, and you have 60 days to transfer this money into an IRA without penalties. They will withhold taxes from this check, but you can get 100% of the taxes back when filing your annual tax return.
Can you go after a 401k plan for child support?
Not for child support, but if arrears exist, as an asset, it is attachable. It can only be considered when if as an old fart, and retired while collecting it, he gets a young chickie pregnant. I had a case of that involving a 92 year old man.
