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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
5-7 mailing days is standard
Not sure what you are asking, but generally you cannot simply convert your 401k to a Roth 401k, unless this is something your current company offers.
If it is offered, then you would have to pay taxes on the amount that you rolled into a roth 401k, but would never pay any other tax on the gains or distributions.
Division of 401k plan during divorce?
Requires a QDRO (Qualified Domestic Relations Order). Check with the employer's HR or benefits administrator to see if there is a preferred DRO template to use. An attorney would have to complete the order and then it needs to be sent back to the benefits administrator to be deemed qualified.
A 401k Plan generally is offered to employees by their employer.
If you are self-employed, you may start a 401k or other retirement plan.
What percentage of your income can you contribute to your 401k?
There is no limit based on percentage of income.
However, most employer plans set a limit as a percentage of salary. Check with your employer for the limit they have set. The law allows them to set a limit as high as 100% of your salary, though I know of none that actually has a limit that high.
The limit on before-tax contributions and Roth 401k contributions for 2009 is 16,500 ($22,000 if you are 50 or over) per taxpayer, no matter how many employers you have. There is also a limit of $49,000 total including all employer and employee contributions (before or after-tax) per unrelated employer. (Few employers allow employee after-tax contributions.)
What are the 2010 IRA contribution limits?
Same as last year: $5000.
401k limit is $16,500, also the same.
http://www.irs.gov/newsroom/article/0,,id=214321,00.html
I would suggest you refer to : Employee Retirement Income Security Act of 1974 (ERISA)
Enforcement of participants' rights
How does the employer matching contribution get recorded on the employee's W-2?
Isn't the W-2 field showing the full contribution paid over, not just withheld from the employee? It is all recorded at the IRS, under your SS#, and when you report the amount of SS income in that field, (which is different than other taxable income fields), the computers check to see that the correspondingly needed total amount of contributions were made for that. Most all the employer filing is electronic...and even all but the smallest employers have to ecen pay the contributions over (frequently even before you get your pay check) through a very automated system too.
How much money can you put into a 401k in a year?
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 $15,500 for 2008 and $16,500 for 2009. * The limit is subject to cost-of-living increases after 2009. 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 $10,500 for 2008 and $11,500 for 2009. * The limit is subject to cost-of-living increases after 2009. 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 $5,000 for 2008 and $5,500 for 2009. * The limit is subject to cost-of-living increases after 2009. 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 2008 and 2009. * The limit is subject to cost-of-living increases after 2009. The catch-up contribution you can make for a year cannot exceed the lesser of the following amounts: * The catch-up contribution limit, above, or * The excess of your compensation over the elective deferrals that are not catch-up contributions.
Is your Lehman Brothers 401K Safe?
Sorry but I am new at this. I have a friend with a 401K with the failed company Lehman Brothers. She fears she may have lost all of her 401K money. Does SIPC cover the bankrupcy?
Typically yes, but usually with very large penalties. Check with the HR of your company for more information on specifics. But yes, people cash out 401K before maturation all the time.
"Pre-Tax" generally means that income to employee is diverted from income before being taxed.
This pre-tax event reduced income and, therefore, reduces Federal and State income tax at the marginal tax rates of the account-holder.
Roth contributions, however, are considered "after-tax". This concept essentially works in reverse. The funds are taxed before they go into the 401k account. However, the funds are generally withdrawn tax-free upon retirement.
its an IRA with a fixed interest rate for some period of time between six months and three years.
Is a 457 the same as an IRA account?
a 457 is like a 401k, but it is usually offerred by governments rather than businesses.
an IRA is an Individual Retirement Account...with the emphasis on individual.
Ira is not typically offered to employees by a business
The withdrawal rules of a 457 are different from a 401k also...there's no 10% penalty for taking you money out before 59 1/2. Local and state government employers offer 457 plans to their employees but you have to be careful of costs. A lot of 457 plan providers charge a lot for their plans. These and similar questions about 457s are answered also at 457planinfo.com
What is the ticker symbol of the retirement vechicles that Mutual of America offers?
Like you, I could not find any ticker symbols for these funds.
You could ask Mutual of America what they are. Where do you have these funds? Is it in your 401k plan? Some 401k plans have funds that do not have a ticker symbol.
Usually these funds will be a "kissing cousin" to a fund with a ticker symbol.
You could use that fund's symbol to track the fund you have. Here is a link to the fund listing and perfromance of MOA's funds: http://mutualofamerica.com/MOAframe.asp?buthit=inv&Main=investments/performance.aspx
Is fidelity 401K FDIC insured?
Per the FDIC website: http://www.fdic.gov/consumers/consumer/information/fdiciorn.htmlWhat Is Not Insured?
Increasingly, institutions are also offering consumers a broad array of investment products that are not deposits, such as mutual funds, annuities, life insurance policies, stocks and bonds. Unlike the traditional checking or savings account, however, these non-deposit investment products are not insured by the FDIC. Mutual Funds
Investors sometimes favor mutual funds over other investments, perhaps because they hold promise of a higher rate of return than say, CDs. And with a mutual fund, such as a stock fund, your risk - the risk of a company going bankrupt, resulting in the loss of investors' funds - is more spread out because you own a piece of a lot of companies instead of a portion of a single enterprise. A mutual fund manager may invest the fund's money in either a variety of industries or several companies in the same industry. Or your funds may be invested in a money market mutual fund, which may invest in short-term CDs or securities such as Treasury bills and government or corporate bonds. Do not confuse a money market mutual fund with an FDIC-insured money market deposit account (described earlier), which earns interest in an amount determined by, and paid by, the financial institution where your funds are deposited. You can - and should - obtain definitive information about any mutual fund before investing in it by reading a prospectus, which is available at the bank or brokerage where you plan to do business. The key point to remember when you contemplate purchasing mutual funds, stocks, bonds or other investment products, whether at a bank or elsewhere, is: Funds so invested are NOT deposits, and therefore are NOT insured by the FDIC - or any other agency of the federal government.
If deceased husband is named in a will what are widow's rights to inherit some of this?
Possibly none. The deceased husband's rights to inherit as a named heir may have been terminated if he died before the person whose will you're reading. However, if the husband was named as an heir "per stirpes", or as a representative of his branch of the family ("to my children and their offspring"), then his estate and his lawful heirs may have a claim under the will.
Can you merge a Traditional IRA and a Roth IRA?
No, because the taxation on disbursement will be different.
You have to contact the company you worked for and find out who your 401k was through and then contact them. If you worked for that company for 5 years or more you will not be eligable for the full amount invested, only the amount you put in . most companies take 20% in taxes when you opt to take out your money , then at the end of the year you will receive a 1099 form for tax purposes.
