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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
How do cash balance plans differ from a 401k plan?
A 401k plan invest your money for you. A cash balance may earn a small amount of interest but has no risk.
Which websites have the best information for people who need to rollover a 401k?
When looking for great advice and resources on you 401k rollover check out www.securewealthplanning.com/. With expert advice, you'll get the information you need.
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.
If I borrow from my 401 K, do I have to pay any interest and penalties?
In general, yes. Unless you meet certain strict requirements, there is a 10% penalty if you withdraw from your 401K.
What should I know before I get a 401K?
What happens if you leave the company is one find here here http://www.smartmoney.com/personal-finance/retirement/5-things-you-should-know-about-your-401k-7925/
Who can enroll into a 401K plan?
People who can get the qualifications for 403b plans are employees of tax-exempt organizations established under section 501(c)(3), also employees of public school systems who are involved in the day-to-day operations of a school, and employees of cooperative hospital service organizations.
What is the best way to roll over a 401k account?
To avoid any penalties you should roll your 401k into an IRA account.
What should I know before investing in a 401K?
The biggest question is how much to invest, typically you should be able to match your salary in 10 years. You should also have a understanding of mutual stocks that you can use your 401k to invest with. Check out this site for full details of investing with your 401k http://moneyandsuch.blogspot.com/2007/09/how-to-invest-your-401k-funds.html
Are self-directed IRAs available to people who have a retirement account through their employer?
IRA's are available to anyone with an earned income. A traditional IRA does not have any income limitations unlike the Roth IRA which phases out its benefits for those making high incomes. Many people choose to contribute to their 401k plan with their employer up to the company match and then contribute to an IRA to gain access to additional investment options.
What is the maximum yearly contribution I can make to my 401 K?
This ammount varries from person to person and from year to year. For both 2009 and 2010 the maximum a person can contribute to their 401 K plan(s) is either the maximum allowed contribution set by your employer, or $16,500, whichever of these is the lower ammount.
What is the basic difference between an IRA and a 401K?
When deciding were to invest your retirement money you have many options, two of those are an IRA and a 401K. A 401K is set up by the employer, where as an IRA is set up on personal preferences.
Simply contact the bank that manages your 401k. You will have some early withdrawal penalties but they will be able to handle this.
That is not true. A hardship determination allows you to make an early withdrawal without paying a penalty. You will however have to pay normal taxes on it.
Can you close your 401k Just stop particpating cash out pay taxes and penality.?
Of course you can. You just lose all the tax benefits.
Am i eligible to pull from my 401k. i am currently facing hardship.?
If you pull out of your 401K and you are under 59 1/2, you will have to pay income taxes and a 10% penalty. The only exemption for this is if you are legally disabled.
How can i get refunded for overcontribution to my 401k plan the previous year?
Your 401k plan administrator will automatically reimburse you when you make an over contribution. You will also receive a form for tax reporting.
Can you convert shares of a 401A plan into precious metals ?
Information about conversion of 401K plan to precious metals and currencies can be viewed at http://seekingalpha.com/article/76542-currency-precious-metal-and-futures-etfs-don-t-get-caught-in-the-tax-trap
Contact the administrator of the plan, not the your employer. Your quarterly reports will give you a contact number. If that company folded your plan would be taken by another company or held by the feds.
A lot of the answer depends on your age. If you are younger than 59 1/2 you will have a 10 % penalty on the amount you withdraw from your 401K and the amount will be regarded as income in your income tax return. If you are older than 59 1/2 you can start to make withdrawals from your 401K but there are regulations the IRS has on how much you can withdraw each year depending on your age.
Is there any way I can transfer my 403B into money market?
There are many ways to transfer 403B into money market
Is it adviseable to move my current 401K to an FDIC insured institution?
If you withdraw from your 401k it might come with a penalty. It might be wise to leave your money in and ride the wave back up when the market rebounds.
So is there any way to not be penalized to withdraw from 401k with out a medical reason?
Most 401k plans have penalties for early withdrawal.
How do I get information about my 401K?
To get information about your 401(k), start by contacting your employer's HR department or benefits administrator, as they can provide details about your plan. You can also check your most recent 401(k) statement, which may be available online through your plan's website. Additionally, if your plan is managed by a financial institution, you can log into your account on their platform for up-to-date information.
