Grand Rapids Business Daily

401k..................? can some one please explain me in simple terms what is a 401k .. how does it benefit us how to select the best 401k plan.. can we opt out of 401k plan..

401k?????? what does this mean??? employer matching contribution One half of a participant's elective deferral amount up to 6% of eligible compensation that is deferred. The maximum matching contirbution, therefore is 3% of a participant's eligible compensation, Any deferrels over 6% of eligible compensation are not matched. so does that mean I can put in 3% and the company will match it 3% as well to make a maximum of 6%???? or can I make a contribution of 6% and they will match that 6% making a total of 12%??

What are the differences and similarities between a 401K in the US and a regulated superannuation Fund in Aus? I see many questions on here regarding 401K's which i assume are available in the United States. They sound quite similar to Regulated Complying Superannuation Funds in Australia. I have worked in the Superannuation industry in Australia so I understand in detail how Australian super funds work and the rules relating to them. I am specifically looking for information on how a 401K works and, if anybody knows about both superannuation funds and 401K's, what the similarities/differences are. If you only know about 401K's then please put down what you know and I will be able to work out the differences and similarities. My understanding is that 401K's are retirement savings accounts which are preserved until age 62 except in certain circumstances (much the same as a super fund). In the US does your employer make contributions into this account for you? Are the contributions compulsory? Is insurance available? The more info the better. Cheers Are there any concessional taxation rules for contributions? How are fund earnings taxed? Are benefits based on a formula (e.g. % multiplied by salary at retirement) or are they simply contributions accumulated with interest? How are benefits taxed?

401K limit applies if I changed jobs during the calendar year? I have recently changed jobs and would like to know if the annual limit still applies to my 401K. For example, year to date I've contributed $10K to my previous employer's 401K plan. Does this mea my 401K contribution for the year with the new employer should be less than 5.5K? Thanks!

Generally speaking, do most 401k plans allow the participant to invest in individual stocks? And by individual stocks, I don't mean the company's stock. I'm talking about non-employer stocks traded on an exchange. In addition, do most 401k plans allow the participant invest in any mutual fund of his/her choice? Or do most 401k plans offer only a limited mutual fund selection? *I know plans vary. But, this is just a general question.

What happens to my 401k plan if I decide to leave USA and go back to Indonesia? What happens to my 401k plan if I decide to leave USA and go back to Indonesia. I have my 401k plan for about 5 yrs. What are the consequences and how should I save from getting penalised ? I am resident in USA and 35 yrs of age.

When your 401K fund prices are down is it good to keep putting money in? I have a target retirement fund for all my 401K money and it's down right now. If I keep adding money does it buy more shares of it so when the price goes up I do even better?

401k, Can the government change the tax rate on 401k plans in the future? I know that the government has changed the distribution age several times in the past on 401k plans but I was told that the government could change the tax rate anytime and for any amount.

Should I quit contributing to 401k and put the extra money I'll get paid to pay off debt? I owe 37k on a home equity line of credit, and another 22k on a car loan. The interest rates on those loans arent that bad (7% and 8%) but I am paying a lot in interest every month. I have been putting the max (15%) of my paycheck into 401k. Does it make sense to reduce my 401k contribution to 1% (so I get the company match) so I can pay off loans faster?

What is the maximum yearly contribution to 401k plans? The limit for a Traditional 401k is $15,500/year, and the limit for a ROTH 401k is $4000/year. However, this year I put $3000 in my Traditional, and $1500 in my ROTH 401K, and Turbotax says I am over my legal limit. There seems to be a conflict in the tax code, so I must be misunderstanding something. Even my payroller and retirement account company are confused.

How can I access my 401K for funds, if fired from work? ........... I have money invested in my 401K. If I get fired from work, what kind of taxes will I owe if I need to access my 401K for funds, while looking for a new job? Thanks!

How should I invest my 401K if I intend to leave my current company after 1 year? So, if I intend to leave my current company in a year & move my 401K into another 401K or IRA option, does it make sense to just keep everything in a money market fund? Would I have to stay with the same funds for 5 or more years to reap any benefits from the stock market? Thanks.

If depleting your 401K while unemployed , any hardship criteria to offset taxes and penalties for early WD ? In order to avoid bankruptcy, during a 9 month period of unemployment, It was necessary to take early distribution monthly from 401K for income. Are there any hardship provisions for this type of "forced" early distribution?

Are contributions to 401k prorated from the time you start work? I have two questions about my employer retirement 401k contributions. 1. The maximum I can put in is $15,500 for 2007. But I started in mid year. Is it prorated from the time I started? Example: I started on July 1, is the contribution $15,500/2 = $7,750. 2. My employer matching is 2:1 up to a maximum of 6% of salary. Example: $50,000 annual salary, employer contribution is $3,000. For every dollar I put in, they will put in $0.50. Is the employer matching of $3,000 included in the $15,500 which means the employee total amount invested is $12,500, or, is it $15,500 from employee plus $3,000 from employer which would equal $18,500. I think it's the former but just want to check. Thanks....

What happens to 401k loans when you change jobs? If I am planning to leave my job in the near future and I have 30k in my 401k and approx. 12k in loans, how will the loans be repaid? Do I pay the taxes at year end? Also what if I decided to cash out the rest?

Is there a max amount you can contribute to 2 seperate 401k accounts if you are married filing joinly? My wife's company just added a 401k and I am considering contributing to it but was wondering if there are limits to max 401k contributions if we file married/jointly? I currently max out my 401k account and I know with our combined income status IRA contributions are no longer tax deductible so I am worried adding to her 401k will bring the same limitation.

How about a single 401k that is part of a sole proprietor business? Where do contributions for either the deductible portion or the 401k Roth portion get reported? Is there a place on the schedule C or somewhere else?

Any way to use 401k to help pay for grad school? My husband is starting business school in the fall. I completed his FAFSA and our expected personal contribution is $53k per year (yikes!). He has a considerable amount saved in his 401k account and since we are both young it might make sense to use that 401k retirement $ towards school expenses. Is there any way to do this without incurring huge penalties? I know we would pay taxes on the amount in the 401k, but if we are using it for education expenses it seems like there might be some way to use the money without paying the penalty... Does anyone know of a good way to do this?

Can I have an IRA and also a 401K plan at the sametime? Can I have an IRA and also a 401K plan at the sametime? I am planning on getting a Traditional IRA plan so I can put away $4000 tax free for this year. However, my company may possibly introduce a 401K plan soon. If I invest $4000 in an IRA account this year, and if my company introduces a 401K plan a little later this year, am I allowed to contribute to both IRA & 401K plans in the same year? FYI, my filing status is married filing jointly and my wife has a 401K plan at her work place. Would appreciate any guidance here. Thanks.

Is there any advantage to rolling my 401k into a rollover IRA instead of my existing traditional IRA? I have an existing traditional IRA and two 401k's from previous companies. I'd like to consolidate accounts. Is there reason I should roll the 401k's into a rollover IRA instead of directly into my existing traditional IRA? Are there any consequences regarding maybe later converting the IRAs to Roth IRAs later?

What is the procedure to use my 401k funds to pay for my college expenses ? I am planning to work in my current position for two years and then go to school for a full time MBA graduate degree. Can I contribute to my company's 401k plan now and then withdraw the amount after 2 years to fund my college expenses without being subjected to the additional 10% penalty ? For this to happen, do I have to roll over the 401k savings to an IRA first, and then make the withdrawal for college expenses ? Are there any expenses involved in this process ?

How much is your 401K taxed when you liquidate it? I am leaving a company and have $4,988.00 in my 401K and would like to cash it out.

What's a good 401K allocation mix for these current times for a 45 year old person? We recently got a new 401K and need to decide our allocation mix between large caps, foreign and bonds. Not sure if I should take the current economic situation into consideration or just stay the course. Thanks!

What is the maximum I can contribute to 401k? In tax year 2006, Since I am over 50 years old, I contributed $5,000 to a traditional IRA because I wanted to reduce my taxable income. My 401k contributions brought my income just a little over $50,000 so I was able to reduce my income by most of $5,000. Is there a limiy as to how much I can have my employer deposit into my 401k account? My income will increase a little and want to be able to contribute more so that my 2007 taxes can be reduced by a $5,000 traditional IRA contribution.

What is the difference between 401k earning and appreciation? When looking at my 401k statement, there is an "Earnings" section and a "Appreciation/Depreciation" section. What is the difference?

Can I xfer money from 401k with present employer to a IRA while still contributing to 401k? I am currently contributing to my 401k plan at my present job. I don't like the choices they give me and the brokerage plan charges $18 per trade and $100 a year maintenance fee. Can I continue to fund the 401k plan and transfer the moneys to a Roth IRA or similar plan at another brokerage?

Can you cash out your 401K tax free to pay medical bills? I have to have a $25,000 surgery not covered by insurance. I'm thinking of cashing out my 401K and someone told me that you can do it tax free for medical bills. Is this true? I'm only 25 so it's not like I can't build back up my 401K...

How long to recieve a 401k cash out check? I recently switched companies & I am cashing out my 401k. Its done, so I don't want to hear about it being a bad decision. I am just curoius how long to expect to wait for the check. Can it be direct depoited? Would that speed it up? Does anyone have experience with this?

Can I withdraw from my 401k without penalty to fund my college tuition? I am planning on working for a couple of years before going to school for a regular MBA. Can I contribute to my 401k plan now and withdraw it without penalty to fund my college tuition? Or is it better to take the tax hit now, rather than take the penalty later ?

How can I move my 401k money from my employer without leaving my job? My employer does not contribute to my 401k. I want to move my money without penalty to another financial institution.

How do you have your 401K currently invested among stocks, bonds, and cash? Please give your age as well as the percentage breakdown of stocks, bonds, and cash in your 401K. Myself, I am 31 years old and am 50% bonds and 50% cash and 0% stocks. I am trying to get a sampling of how others are investing their company retirement plans. Thanks.

How can I find my 401k from different employers? I have been employed by three different companies and had 401k with each of them, but I never checked it or withdrew it when I quit. How can I find out if I have funds available to me in these accounts and/or what companies they are with? One of the companies I worked for has been purchased by another company, so I dont know about calling them. Thanks In Advance!

What's the difference between withdrawing your 401k and taking a loan from your 401k? Is it possible to take a loan from your 401k with out having to pay taxes on it till 2010 taxes.

How old must you be to enroll in a 401k within your company? Hi all! My son's girlfriend is only 19 and her company has a 401k program. She was told that she can not contribute until she is 21. They live in Illinois. Does anyone know if there are age restrictions on beginning a 401K? Thanks in advance for your answers!

How much is taxed when you take money out of your 401k? I recently got divorced. I have to sign over 1/2 of my 401k to her. I am thinking of asking her to buy her out less any taxes she would have been charged. What percentage is taken out of a 401k when removed. I am trying to think of an offer to give her. The 401k is not alot. (24,000) She gets 12k. Any Ideas?

Should I start 401K with a recession around the corner? I recently become eligible to join 401K through my work for the first time. With a recession possibly looming around the corner and the Market not performing very well right now, what should I do? Should I go ahead and join and take advantage of the lower prices and shares or should I wait it out until the Market starts to perform better? Just to note I have never been a part of a 401K plan before now. Any help would be appreciated. Thanks.

What do I do with a 401k from a job I'm leaving to go back to school? I'm already planning on opening an IRA at the maximum amount. So what do I do with my 401k if I'm leaving my job to go back to school and won't be able to roll it over to another employers plan?

What happens if you cash your 401K and run away forever? What if, in the hypothetical case, I cashed my 401K, paid nothing to the IRS and ran away to a foreign country to never come back to the US?

How much money should I have saved in my 401k? I am in my early 40s and have watched my 401k drop by about 40%. What's a good rule of thumb when looking at your 401k balance? How much money should you have saved by your early 40s?

I have a 401K that is vested. I plan to go to India and cash it. How to do without paying much penalty and tax I have a 401K that is vested for around 100000 US$ and I am allowed to take it after I leave the employer. I do plan to go back to India. Is it possible to take 15,000 $ per year and avoid paying federal and state taxes ( Since Iam out of country and not a resident + it falls with less income per annum). Is there a penalty that I have to pay while taking money out. I will have closed all my bank accounts except this IRA/401K account and so how would I pay the penalty and any taxes that might occur. Please advice.

How do I report 1099-R income related to 401k rec'd in 2007 and reported in 2006 Taxes? I received distribution of a portion of my 2006 401k contributions in early 2007 because of failure of 401k plan for high income earners. I reported this on my 2006 taxes. I received a 1099R in 2008 for 2007. How do I report this since I've already included it in 2006 taxes?

How do you explain 401K benefits to employees so that it increases participation? Explain 401K benefits in a way that reached the audience, is easy tof them to understand and emphasize the advantages of a 401K. How can you explain this benefit during employee orientation so that it results in high participation, less confusion and fewer phone calls for clarification.

How can I withdraw 401K with Penalty or taxes to purchase investment property? I would like to withdraw funds to purchase and investment property from my 401k. the 401K is with an old employer. What is the best way to get the funds without being penalized or paying taxes? Someone told me to transfer to an IRA account. Is that true? OK, I am 35 and married.

Can money from a 401k loan for a first time home go towards a down payment AND closing costs? I know I can use a loan from my 401k towards the down payment. If I have some money left over from the 401k after that, can I use the rest for the closing costs?

How does one start a 401K if you work at Wal-Mart? Just how does one start a 401K if you work at Wal-Mart? Do you need a specific amount to start with? Does Wal-Mart match dollars invested or do anything special with 401K's there to make them larger or not?

Can I deduct from my 401K to pay taxes due to the IRS without a penalty? I owe the IRS 7K for taxes this year. The money I owe is for taking an early withdrawal from our 401K to fix the bathroom. I'm not sure it counts as a hardship, but the bathroom was mold infested and needed to be gutted everything replaced. Can i take more money out of my 401K to pay the taxes due and not have to incurr another penalty?

How do you take out an early 401k withdrawal? I see all over the internet people mentioning cashing in their 401k early to pay off debt. I just tried to do that exact same thing, yet according to my representative, (who put me on hold to verify with someone else) there is not one single legal way I can cash in my 401k early without qualifying for a Hardship Withdrawal and providing proof from a very limited list of acceptable documents for them to investigate. Which is the truth here: Have people closed out their 401k early to pay off debt, or is there no legal way to do so?

Who should I go to rollover a 401K into a growth stock mutual fund? I am looking for an agency to take my 401K to but unsure of where to start but I know I want to put it into a growth stock mutual fund. Should I withdraw my funds first or contact (insert name here)? Thanks!

How long does it take to get 401K disbursement for under 59 1/2 year old, hardship withdrawal once filed? My husband has been out of work and we have separate 401k plans but need to take a lump sum from his plan to help with the bills or we won't have a place to live. 1. How long does this process take? 2. We want to opt for the 10% and 20% tax and penalty to be taken out before the disbursement. Will we be taxed or penalized again on it when we file our taxes?

Does a 401K beneficiary have to live in the US? I want to add someone as a beneficiary to my 401K, who lives in Germany. I can't find any regulations on this. Does anyone know if it's possible to select a beneficiary outside the US?

How long to recieve a 401k cash out check? I recently switched companies & I am cashing out my 401k. Its done, so I don't want to hear about it being a bad decision. I am just curoius how long to expect to wait for the check. Can it be direct depoited? Would that speed it up? Does anyone have experience with this?

Is it good to borrow against my 401K to pay off high interest credit cards? I have some high interest credit that we can never seem to pay down. We have not added to the balance in over a year though and I am more than willing to cut them up. Should I borrow from my 401K and pay myself back at 8% interest to pay off the cards?

How does one start a 401K if you work at Wal-Mart? Just how does one start a 401K if you work at Wal-Mart? Do you need a specific amount to start with? Does Wal-Mart match dollars invested or do anything special with 401K's there to make them larger or not?

What is the best company to do a 401k rollover with? I want to rollover my 401k to a IRA, but don't know which company to pick. Please help! Thank you!

Profit made by transactions in a rolled over 401K plan and not withdrawn,is that taxable? In Box transactions of rolled over 401K plan with the broker on line and if such profits and loss a/c show overall loss,with some transactions profiting and some loosing,how that is taxed or will not be taxed if no money is withdrawn?

How to request 401k rollover from a very old employer? Hi, I left my 401k monies with my old employer. Its been about 20 months since I left them. I would like to rollover this money into my new account with the new employer. Is this possible? Thanks!

What is best route for taking distribution of 401K as a beneficiary? Mother passed in Sept 05 (she was 61) and I'm the beneficiary on her 401K accts. Trying to determine the best route to avoid paying high taxes. In the short term, I am looking at possibly using some monies from the accts to help fund a new business. I'm in my mid-30s. What are my options?, how soon do I need to act?, and what is the best route to avoid paying a bunch of taxes?

What percentage should I have put into my 401k without affecting take home pay? I was told 4% was correct, but My pay dropped $20 for the $20 I put in the 401k. That doesn't seem right. Does anyone know the correct amount?

What is a 401K? Once you have money in one, can you loose any of that money do to a failing the economy? My mom said her 401K was getting smaller and smaller and she is not sure why. So she was told to cash it in. Is that the right thing to do?

How long will it take to get my 401k check? If I quit mt job today. How long will it take to get my 401k check? I am planning on closing it out, even with all the penalties so I can get out of this debt.! Anyone have an idea how long it will take? Months maybe?

I have a 401K plan at work. It gives me the option to select contribution percentages for both? PRE-tax and AFTER-tax dollars. If I contribute $$ using AFTER-tax dollars, would that have the same principals as the ROTH IRA or other ROTH plans in general? Would my AFTER-tax contributions into my 401K plan grow tax free and also be TAX free when I go to withdraw it? Thank you.

How can I change the 401k to non-deductible, so I can contribute to my IRA for 2006? My situation: I joined the company 401k plan in the mid-December 2006. Which I thought will start from beginning of 2007. However, my company started draw the money immediately and I didn't notice until I got my W2 form recently. The 401k deduction is only $769 for year 2006. I have already put money on my IRA account which I can put $5000 for 2006, I'm 50 years old. Based on the IRS rule, I could not contribute to IRA if I have 401k and have AGI more than $80000 in 2006 which I did. Is there any way that I can change the 401k contribution to non-deductible, so I can contribute to my IRA?

What are the tax ramifications of pulling out my 401k for a home purchase? I am considering buying a house that I would immediately have to build on to. I have about $64k in equity on my current home, but if that is not enough I am considering taking $20k out of my 401k to supplement the building costs. If I do this how stiffly will I be penalized by the IRS for withdrawing the money? jerryguy I would give your rhyme about a 7 out of 10. You scored that high because you incorporated the 20k and the buying a "crib" in it, which I appreciated. It was a little awkward though.

What happens behind the scenes in a 401k plan? I work for a medium sized technology company in Silicon Valley. I have been participating in the company 401k plan for 5 years. Every once in a while the 401k funds available to us change completely. Even the funds that are doing spectacularly well. I can never get a straight answer from our 401k plan administrator or the company that provides us with the plan, as to why funds are added and dropped at will. Apparently there is a board of trustees that manages the company 401k and decides which funds to make available. Being a salesperson myself, I am guessing that this Board of Trustees has other incentives to choose one company's 401k mutual fund over another. How does this work exactly? Are these board members given kickbacks and free lunches when approached by new fund administrators?

How long should I keep old 401k statements? I have old statements going back to 2000, when I started my 401k, but the envelope they are stuffed in is getting thick. I read somewhere that it is recommended that you keep old bank statements going back 9 years, but what about 401k statements?

What do think of companies that have eliminated matching 401k plans? My company stopped matching 401k plans and many people are upset. The company claims that they are financially strong so why cut something like this? Does this mean they don't care about their employees?

Would it be a good idea to start a 401K as a recreational savings account? For instance, say I was planning on travelling throughout Europe in a couple years. Would it be better to start a 401K (with my company matching my contribution), and take out the money with penalty in a couple years, or would it be better to put it in a high interest investment? Thank you for all.

What is a Profit Sharing Entitlement Withdrawal from a 401k? On my employer's 401k website under Loans/Withdrawals it lists an amount for me that I can access. Can I just withdraw the $ and not be taxed or penalized?

Can I start a 401k at target to help pay for college? Im 17 and a senior in high school. im not sure how the 401k plan works, but i would love to take advantage of it for college if possible.

What happens to the 401k forfeiture account when the plan closes? I am closing my company's 401k and we have 11k in the forfeiture account. What happens to that money? is it returned to the company?

How much will i be penalized if i close my 401k? I have a 401k from a place i worked at 2 years ago. I since have gone back to school and am aiming at my master, possibly doctorate. I am 24 and live in south florida. My 401k has $2841.28 currently. What would i get back if i closed it and took my money? How would i got about getting it? I need the money because my gorlfriend and i decided to buy a townhouse and i need money for the down payment. I would keep it in but i desperately need the money.