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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
Yes, you can always contribute as much as you want to your 401(k) pension plan. However, the percentage matched to your contribution varies from company to company, and is often capped at somewhere between 2% to 8%, depending on the size and wealth of the organization.
How can cost management system help companies determine the profits and costs?
Determining Costs:
Use of Activity-Based costing in the management cycle where the main focus is managing activities rather than costs.
Value Chain and Supply Chain analysis in the activity management.
Identification of Value-Adding activities and eliminating Nonvalue-Adding activities.
Eventually, from the cost hierarchy (Unit level, Batch level, Product/Service level and Operations level) the bill of activities are computed; and then the product unit costs are calculated.
Is a variable annuity a good 403B investment?
Fees are higher in a Variable annuity than they are in say a fixed Index Annuity.
That is a guideline of the plan document and varies by the manner by which an employer transfers the funds to the plan. Ask your employer or the plan reperesentative for specifics.
When are contributions made into IRA accounts?
You can make contributions any time during your tax year to an IRA account. Total IRA contributions for the tax year may not exceed your taxable income or $5,000 ($6,500 if over 50).
AIG is an insurance agency that fell victim to the housing market collapse. The company was considered "too big to fail" and bailed out by the US government. The scandal related to the underhanded tactics and fraud perpetrated by AIG executives.
Understand your options. When you leave a job, you typically have four options: leave the money in your old employer's plan, roll it into your new employer's plan, put it into an IRA, or withdraw the balance.
When to stay put: If your current plan has great investment options at low prices, it won't charge you fees to stay in the plan (ask HR to find out), and you don't mind getting one more brokerage statement, it's fine to leave it where it is.
When to roll in : If you have access to your new retirement plan right away, and the options are good and cheap, it's fine to roll your old balance into your new account.
When to rollover: More often than not, neither of the above are really great options. If that's the case, you can move your funds into a rollover IRA - a kind of brokerage account that tends to offer far more options.
Don't cash out: Unless you really need the money, don't withdraw it. You'll pay income tax on the money, plus a 10% penalty for early withdrawal if you're under age 59 1/2. For Roth 401(k)'s, only the earnings (non-contribution portion) are subject to the penalty and income tax, though in some cases--qualified early withdrawals--are not subject to the penalty.
Which is an example of a defined contribution retirement plan?
This would be an employer sponsored retirement plan. With these you will put in so much money each month and the employer will match your contribution by some percentage.
How do you use 401K in a sentence?
This is a type of retirement plan. Your company will put part of your paycheck aside in a special bank account (which they will use to draw interest for the company). Then, when you retire, the money comes to you. Here are some sentences.
- Do you have a 401K?
- You can sign up for our 401K plan when you are hired.
$16,500 between both plans. If you contributions $10,000 to one plan and $8,000 to another, then you are over the IRS 402(g) limit of $16,500. You would need to take out $1,500 from one of the plans as a Return of Excess.
