401k and 403b Plans

First, it's under Federal law.

Yes, I would call it secured.

Now, you need to get some advice...you are in a terrible situation....your 401k would have been exempt from seizure in BK to any amount...however, the loan money from it is not. You may well end up losing the money you took out, and having to pay back the loan, but more importantly, if you can't, or if you lose your job and the loan then becomes due (common under 401ks that allow loans), and you can't pay it back....even if they use the account to pay the loan - it will all become taxable income, and you will have to pay the early withdrawal penalty...which can come to about 50% of the amount. So your setting your self up for another financial (and tax) major problem.....get some advice now.

$15,500 +$5,000 additional($20,500), if 50 or older $15,500 +$5,000 additional($20,500), if 50 or older

Because this is a retirement fund there will be a penalty for not rolling it into another retirement fund but you can liquidate it. You would be charged 10% penalty plus the amount would count and be taxed as normal income in the year that you take it out.

your retirement fund

It is a type of defined contribution retirement plan offered by many employers. The employee decides how much he wishes to contribute, and the employer may or may not make a matching contribution.

No.

No. There are, however, two points at work here as follows:

A 401(k) account is a retirement account that is generally protected from creditors. You are only allowed to access the funds at retirement or through loans where you are effectively borrowing money from yourself and paying yourself back that money with interest.

Garnishing is a phrase that implies money being taken from income of some sort.

Putting this all together, a loan company, if they get a judgment against you, could garnish your wages but would not be able to touch anything that has to do with your 401(k).

only if the current employer allows in-service withdrawals.

Unfortunately, Bonefish Grill does not offer 401k plans. They do, however, offer medical and dental coverage, prescription drug coverage, vacation time, flexible schedules, and career advancement.

No..not from the IRS...I guess there could be a special fee from the administrator.

Its actually good to NOT have much of your retirement savings invested in the stock of your employer....all your eggs in one basket is the term.

typically, a 401k can maintain a balnce for a full calendar year after termination of employment before it will either be disbursed automatically or it must be rolled over into a new plan; the best way to avoid the 20% in taxes is to roll it into a Roth IRA if you are not enrolled in a new 401k plan that allows rollovers. FYI That roll over has to be an electronic or wire transaction between your current account and the new one. You would set up the account with a new broker and tell the ole one where to transfer the money. If you touch the money (a check is written to you) they hit you with the tax.

You contact a company such as Vanguard or T.Rowe Price or Fidelity Funds, and tell them that you want to open a rollover IRA account, for your 401k account. They will have you provide some information (name, address, ssn, etc). Often people will choose a mutual fund for their IRA. Read about them on their website, and ask for their advice. A NO LOAD fund doesn't charge fees to open or buy more shares, or to sell/redeem shares. (There are a LOT of good NO LOAD funds.) Once you've determined which one you want to invest in, you will need to have the company that currently manages your 401k to send the funds DIRECTLY TO THE COMPANY THAT YOU OPENED THE ACCOUNT WITH. If you have the funds come to you first, then send to the new company, then you will incur penalties - it will be as though you've take a distribution.

I believe new bankruptcy law exempts all retirement from being touch during bankruptcy so it should be safe

Yes, unless the person in question is still working and contributing to the plan

Based on a wide spread believe - it can't. Based on my conversation with IRS yesterday - it depends on your plan (401K ).

The Human Resources office where you work should be able to get an answer for you.

If you paid more than the allowed amount on your 401(k), contact your employer 401(k) rep about the amount that you have overpaid. You should receive a check from the 401(k) company or your plan administrator. This amount is to be reported on the Tax Form 1040, line 7. Since this money went into your 401(k) untaxed, it now has to be taxed. Report this money in the tax year you receive it.

Charitable contributions are deductible only if you itemize deductions on Form 1040, Schedule A. To be deductible, charitable contributions must be made to qualified organizations. Qualified organizations include, but are not limited to, Federal, state, and local governments and organizations organized and operated only for charitable, religious, educational, scientific, or literary purposes, or for the prevention of cruelty to children or animals. Organizations can tell you if they are qualified and if donations to them are deductible. If your contribution entitles you to merchandise, goods, or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received. For a contribution of $250 or more, you can claim a deduction only if you obtain a written acknowledgment from the qualified organization. You generally can deduct your cash contributions as well as the fair market value of any property you donate to qualified organizations. The fair market value of most household or personal items is generally much less than the price paid when new. You should claim only what the item would sell for at a garage sale, a flea market, or a second hand or thrift store. You must fill out Form 8283 Section A, if your total deduction for all noncash contributions is more than $500. If you make a contribution of noncash property worth more than $5,000, generally an appraisal must be done. In that case, you must also fill out Form 8283 Section B. Attach Form 8283 to your return.

The question should say "age 59 and 1/2 years." For whatever reason, 59.5 years is the age at which you can start withdrawing funds from your 401K without penalty. Before 59 and 1/2, the penalty for early withdrawal is 10% of the taxable amount of your withdrawal.

You can also withdraw money from your fund without the 10% penalty if you are leaving your employer when you are at least 55 or you become disabled.

If you are eligible to withdraw money from your fund then you have to pay income taxes on the withdrawal. However, you do not have to pay income taxes if the money you withdraw go into a different employer sponsored plan or an Individual Retirement Account (IRA).

As an employee, you cannot directly setup a 401K, it must be set up by your employee. If you are self employed (generally defined as you get a 1099 vice a w2 but the 1099 can't be from a bank or stock account and you report the income on schedule e, se or f of your income tax return), such as a real estate salesperson or a sole proprieter, you can set up a solo 401k. Additional info is available at http://www.penscotrust.com

Typically, you have to pay the entire balance of the loan back.

There are a number of factors that can affect the ultimate payout. The employer and/or plan administrator would likely have a beneficiary designation on file for the 401(k). If the plan is an ERISA plan, it is unlikely that the interest of the surviving spouse (not the common law spouse) would be usurped. State law can come into play, too (ie, whether the wedded spouses were legally separated, etc.). I know this probably doesn't help, but the question is pretty vague and needs more details, such as was the spouse named as the beneficiary to the 401(k)? was the common-law spouse named as the beneficiary? what do the terms of the 401(k) plan indicate regarding distributions on the participant's death? is the plan governed by ERISA? were the spouses legally separated under state law (ie, did a court issue an order of separation? does state law take away the rights of a surviving spouse when there is a separation order?

It depends on what you invest in in your 401(k). If you invest in stocks, their return typically outpaces inflation. Bonds return less, and so it's harder to outpace inflation. If you invest in cash, such as in a money market fund, then you won't outpace inflation.

There may be some very difficult and specific ones, that if you were in the circumstances for you would likely be addressing.

Otherwise...do that thing that every financial advisor says you shouldn't...withdraw you tax preferred retirement savings...and you pay a penalty...and you receive it all as income too.

By the way...you understand if your financial situation is desperate...that the 401k is exempt from seizure during a bankruptcy... withdraw it now and lose the protection too!

Not that I know of, unless you are retiring. Usually they require one to be 100% vested before withdrawl.

Try this website:
http://www.fundadvice.com/401k-help/401k-plans/401k-safeway.html