401k plan
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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...
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- 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'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 ...
529 College Savings Plan
Asked by I.W. from Baton Rouge
on February 28, 2010
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Hi mom, It's me again... I am wondering how I start to set up a 529 college savings plan for my son and my daughter (4years old and 8months). Did anyone use anyone tha...
Answers
- Have you looked into the pre-paid college funds. They differ a little from state to state. You can pre-pay in full or do monthly payments at todays rates for college...
- I set up 529 College Savings Plans with the same financial institution I have for my 401K. I use www.fidelity.com It is very user friendly and their representatives ...
- I am also in the process of setting one up for my 6 month old. After alot of confusion, I decided to go to my bank and speak with the financial counselor there. He gav...
529 College Plan????
Asked by K.O. from Dallas
on October 2, 2009
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Has anyone ever heard of the 529 plan. I was looking on the internet for ways to save money and am considering it for my daughter but not so sure. If you have not hear...
Answers
- Both of my kids have 529s. You don't have to choose the TX plan. Each state offers them. You can go direct to the state's website to get it. My kids have the Utah ...
- Hi K., I know a great deal about 529 plans, as I am a financial advisor, and I also have a 529 plan for my 10 year old son. The texas website you quoted is not the w...
- We opened one thru our Farmer's Agent when my daughter was born. Right now we only put $50 a month in but plan to increase that once we are not paying for daycare any...
529 College Savings Plan?
Asked by K.S. from Dallas
on May 6, 2008
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Hello!!! I am wondering how I start to set up a 529 college savings plan for my son. Did anyone use anyone that was really helpful? I am not a numbers person at all s...
Answers
- My husband is a numbers man and when my now 13 yr old was born he had hers set up and ready for 529. Over the years, we have allowed our investment guy from Edward Jo...
- One web site that can help a lot is www.collegesavings.com. I googled "529 Plan" and got a lot of helpful info. I reviewed an article by Morningstar on the various p...
- Also try www.upromise.com. It is VERY easy to get an account set up and many retail stores will contribute a small % of your purchases to the college fund & they also...
