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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
Can IRS garnish my 401k if my husband owes the IRS money?
Yes if you filed a join tax return Or you have a join bank account. IRS will garnish 401k because they see it as a income.
Fund specific In-Service Withdrawal?
Not all plans allow this feature. You would need to consult your plan administrator or read your Summary Plan Description. A fund-specific withdrawal allows you to take money from a specific investment fund rather than taking it pro-rata from all funds.
Is FICA deduction before or after 401K deductions?
A deduction is made "pre-tax" if it avoids at least one form of taxation. Although contributions to "traditional" versions of 401(k) and 403(b) retirement plans, as well as 457 plans, are "pre-tax" deductions for purposes of Federal income tax, they ARE subject to FICA withholding.
In contrast, Section 125 ("Cafeteria Plan") healthcare premiums are deducted before FICA liability is calculated.
They are important because they're helping you plan for your retirement. Social Security is not guranteed and 401k accounts allow you to set aside monies (Normally on a pre-tax basis lessening your taxable income.) to plan for your own retirement. Some plans also offer luxuries such as loans and in-service withdrawals. (Possibly only for safe-harbor criteria.)
401 (k)
Hard to say for there are a lot of brokerage firms/banks you can roll the money over to. May depend on what kind of asset you want to invest that money in...stock then brokerage is probably better. If IRA CD, then bank may be best.
What can you do if your employer does not contribute the agreed amount to your IRA?
If you have a signed agreement, you can hire an attorney and sue the employer for breach of contract. However, if you do so, you will likely need to seek other employment.
Are 401k loan repayments pre tax dollars or post tax dollars?
After Tax Dollars. Any loan you take is repaid in after tax dollars and 401k loans are no different. The money you take out is not taxed so you get the benefit of that.
Technically you can default on it and not repay it at all - then you are hit with the big penalty tax as it would be considered a distribution. So it's up to you - pay it with after tax money, or don't pay it and get hit with the tax and the penalty for early withdrawal tax.
What happens to your dads 401k if he dies?
The 401k passes intact to his heirs, with the same penalties if they are not of age (59 1.2) to withdraw it as cash. He can allocate it to specific beneficiaries or describe the distribution in his will.
What are the penalties for cashing in a 401k plan at age 65?
At 65 there is no penalty tha I am aware of
Who do you contact about your Wendy's 401k plan?
Depends on your regional office for example I work in Western New York and I contact The Rochester office.
Both are retirement savings plans in US ONLY. Check related links if you want to read more.
it was started as a benefit for two CEO's GE & IBM. Only later did someone realize that the masses could benefit from this tax loophole.
Does 401K affect unemployment benefits in Colorado?
According to this 9News article IT DOES! See the Related Link below. This is further substantiated by the other Related Link below, in that it was the basis for the decision. An article approximately 7 months old details how "Jackson" lost his UI benefits
How much can you get a loan for out of your 401k?
It depends. Not all plans allow withdrawals of any amount. And many have a restriction on how long you had to be a participant before you may do so. The administrator should be able to tell you about yours. Just noting, as the Q was posted under bankruptcy...taking a 401k loan before or during bankruptcy is one of the worst things you can do..you can easily be stuck without the money (that would have otherwise been exempr) but with the debt and a large tax bill.
What does the letter k mean in 401k?
The letter k refers to a sub-section of Section 401 of Internal Revenue Code.
In 1978, Congress amended the Internal Revenue Code by adding section 401(k), whereby employees are not taxed on income they choose to receive as deferred compensation rather than direct compensation.
The law went into effect on January 1, 1980, and by 1983 almost half of large firms were either offering a 401(k) plan or considering doing so.
What is the maximum before-tax 401k contribution in 2010?
It hasn't been determined yet by Congress. Curiously enough, it is "indexed to inflation". Since inflation has been negative lately, theoretically they could DECREASE the limits from 2009 limits ($16,500 in 2009) which would be terrible since so may folks have a lot of catching up to do.
Can you roll a 403b plan over if your employer no longer contributes to it?
Not unless you are 59 1/2, separated from service or the plan is terminated, meaning there is no 403(b) at all anymore with the employer. Terminating a 403(b) is very rare.
What will the maximum 401k contribution for 2010?
The 401(k) contribution limit for is $16,500 for those under 50 years old. For anyone between the ages of 50 and 59 ½ years old you also have the option of contributing an additional $5,500 as a catch-up contribution.
The IRA contribution limit for is $5,000 for those under 50 years old, with a $1,000 catch-up contribution option for those between 50 and 59 ½ years old.
Does cashing in a 403b affect your tax return?
Yes. The contributions were not taxed the withdrawals are. And are reported by the adminstrator to the IRS
Does cashing out a 403b affect your tax return?
Oh yes. That is considered income and you have to pay taxes on it.
(Understanding that it wasn't taxed when you contributed to it, or as the investment grew).
Can an employee cash out a 401k?
yes you can, however on some plans u r subject to repay back and also u r subject to having early taxes as well because when your payroll deductions are made, ur 401k comes out first before your taxes, i cashed out my 401k back in 2003, even though lots of taxes were held out and penalty taxes, not enough was taken out and therefore i have to still pay the IRS over $10,000 and they charge interest as well. as to this day i still owe them$7000. so think long and hard before you do
