401k
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401K
Asked by K.R. from Houston
on January 14, 2009
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Does anyone know if an employer has the right to keep an employee from taking their money out of a 401K plan? Apparently, these employees are losing alot of money. ...
Answers
- The employer absolutely has to follow the plan documents as well as IRS regs. This document outlines whether or not loans can be made. You should be able to take the...
- You have every right and you should remove your 401k, especially if you are losing money. Most employers recommend you transfer your 401k if going to another company....
- I am sorry to hear about this. I am by no means an expert but I would try 2 things: 1. stop making contributions if possible; and 2. try to transfer from your current...
What to Do with 401K
Asked by M.M. from Santa Barbara
on March 18, 2009
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When I left my job over two years ago to stay home with the kids and have our baby, I didn't cash out or rollover my 401K. Of course now that the ecomony and stock mar...
Answers
- I would leave it in place. In order to cash it out to put it in a CD/MMA, you would have to pay a 40% tax on early withdrawal. If you are concerned about your 401k, ch...
- Or invest some of it in "poor people". By that, I mean, don't invest in high tech, etc. Invest in Walmart, etc....since they made TONS of money this last quarter, wh...
- That is accurate. You should leave it in place. If you can put a little more in there in fact, it would be the best time to buy mutual funds.
What Exactly Is a 401K?
Asked by D.F. from New York
on December 18, 2010
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My husbands job is pushing him in to signing up towards the 401k plan. What exactly is it? Is it worth signing up for?
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- I agree that it is worth signing up for. A 401k plan is a retirement account that you deposit pre-tax money into. Since your contributions are pre-tax, it may actual...
- Hi D., It is a tax deferred investment plan. You put in a percentage of salary now, and it is taken out of the paycheck before taxes, thereby lowering the taxable inc...
- YES -it's worth signing up for, particularly if you don't already have some guaranteed retirement accounts. A 401K is a retirement savings plan and most companies m...
401K Loan
Asked by K.H. from Indianapolis
on April 6, 2012
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We have some pretty sizeable credit card debt. Nothing we can't manage month to month (and usually pay more than the minimums). However, it is really taking FOREVER ...
Answers
- My only thought - can you keep the debt OFF the card once you pay it down? I have a gf that does this exact thing at least once every 2 or so years. Her cards get ...
- um...your only going to be able to pay half of your Credit card debt...makes no sense to do this...lets just add another form of debt to the load... You say this wi...
- I'm not totally sure, but I think you might have to use the loan as earned income on your taxes for 2012 and the irs will charge you 10%, plus it might throw you into ...
401K & Foreclosure
Asked by K.M. from Milwaukee
on August 8, 2007
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My husband and I are having a lot of financial struggles... since I started working first shift, and we've begun paying for childcare, we haven't been able to afford o...
Answers
- I'm so sorry for what you are going through. Unfortunately I don't have any good answers for you?! I would suggest talking to a lawyer...but that would cost money to...
- I think that if you took the money out of your 401k for the house then you need to use it for that. If you took it out as a general loan then you can use it however y...
- I guess I'm confused as to why you are working a job that is costing you the possible loss of your home? When my child was born, I had been working a job, but when we ...
401K's and Penalties for Taking Some Funds Out
Asked by K.C. from Las Vegas
on May 4, 2011
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Hello Mom's
Could any of you tell me about penalties on taking money out from your 401K's before retirement. I had some friends take it out for buying a house, but ...
Answers
- You really have to look at the rules for your plan. But, in general, a loan is always better than a withdrawal but you generally only have access to a portion of your ...
- I don't see that anyone has mentioned the specific numbers, so here goes: If you withdraw the money from your 401k (not a loan) and you are under 59 1/2, you will pay...
- My company administers retirement plans. Your friends were eligible for what is called a primary-residence loan. They have to pay back the loan, with interest, to the ...
401K - How Much Should I Have in There by 33?
Asked by A.D. from New York
on January 10, 2011
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My parents just retired and I would like to try to understand how much I should have in my 401k by now and how much I should be setting aside. I just started a new job...
Answers
- You need to talk to a financial advisor who can give you solid guidance. Many people here have good ideas but we are not professionals. You need to do research a...
- Make sure you are carrying no debt and have an emergency fund. Check out this calculator: http://www.daveramsey.com/tools/investing-calculator/ Dave Ramsey is a WE...
- It depends on how much you want to live on once you retire. Then, generally, if you can withdraw and live on 4% a year of that total amount, theoretically, you will n...
Cashing in My 401K to Pay off Credit Cards
Asked by J.V. from New York
on September 6, 2008
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Hello All, I have about 8K in credit card debt I would like to pay off. I also have 11K in an old 401K from my previous employer. I know the golden rule is not to ...
Answers
- Hi J., You should consult an accountant to be sure. But, I believe you pay all your capital gains taxes up front. I'd also consult an accountant about the best way t...
- DON'T DO IT! Dont cash in your future to pay off the past. You'll be creating more problems. Go to Consumer Credit Counseling Services, of New Jersey or whatever s...
- DO NOT DO IT! You will get hit so hard in taxes and penalties that you will have to take a loan just to pay that! My mom closed out hers at a previous job and she had ...
Need Easy to Read Guide for 401K Info, Roth Iras, Etc
Asked by S.J. from St. Louis
on December 17, 2009
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My husband for Christmas would like a book or guide explaining the difference between all the available investment possibilities, most notably Roth IRA's, 401K, etc. ...
Answers
- S.- This is sooooo smart. I was a financial advisor and so many people didn't take care of this. There is a "Wall St. Journal Guide to starting your financial life....
- Dave Ramsey has some great books on investing/saving
- You can go to IRS.GOV and look at publication 590. This has a lot of information about IRAs and Roths. This is free of charge might be a good place to start. Also m...
Wants to Be a Sahm (Stay at Home Mom)
Asked by J.L. from Chicago
on January 31, 2011
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A question for all my moms who stopped working to stay at home.
I'm thinking of staying home to be bring more structure and mommy time for my 2 kids. I'm looking in...
Answers
- Don't cash in your 401K, there are plenty of other ways to build an emergency fund....maybe you should build up your emergency fund before you quit your job
- Cashing in the 401k I have been told by a lot of ppl that it is not worth it at all. But staying at home with your kids I think is great. I never imagined being a sahm...
- Why would you cash in it before an emergency? It should be a last resort given the penalties. I agree with other posters to establish a bit of an emergency before yo...
