Archive for 401k – Page 2

Can I rollover Traditional IRA to Roth IRA in 2007? Under what circumstance does it make sense?

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Friday, September 2nd, 2011

I put money in traditional IRA for last 3 years, can I convert them all to Roth IRA in 2007? under what circumstance does it make sense?

Unless you have a dire need for the money, leave it alone, as you'll have to pay tax ( added in to your 07 income) for each individual year that you paid no taxes on the untaxed contributions. I can think of no reason not to just keep as is. I'm not a pro so check your other answers.

Yes, you can roll from an IRA into a ROTH and it does make sense if you are planning to retire rich. there are a few catchs and you need to check details with the prople who are handling your 401K but if you make less then 100K in 2007 then it should be easy to do but you will have to count the current value of the 401K on your 2007 tax so that you pay income tax on those funds.
401K is not taxed when you put it in but EVERYTHING you take out is taxed at your current income rate. So if you have lots of time for the money to grow; I would rather pay tax on the lower value now and not on the total value it grows to. unless you PLAN on retiring poor and being in a lower income tax bracket then you are now.
the logic

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Categories : ira roth ira
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Do i have to get a 401k/ roth ira and/or money market investments to boost up my financial investment gains?

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Thursday, September 1st, 2011

i have a retirement plan from being a city employee, 457 deferred compensation through ING. i have it in part savings and part stock. do i still need a 401k/ roth ira and/or money market to boost up an investment gain?

Your 457 deferred compensation plan is 401k comparable plan offered by your employer. so you do not have 401k option.

Now depending upon your income, age, marriage status you can open IRA accounts and invest that money.

If you have money just sitting without earning anything, then you boost your investment gain by opening IRA accounts or opening CDs or money market or regular brokerage account and investing in stocks/Mutual Funds/ETFs.

Good luck!
———————–
theusefulinfo.com/Finance

This is a really complex question…

1. most people use a 401K because they work for companies that set one up for them. I know where I work, my company will contribute a matching dollar for every dollar I put into the 401K up to 5 percent of my total salary. This is a no-brainer because it's like free money, although I can't touch it until retirement. another good thing is the money I contribute comes out of my pre-tax income, so it isn't taxed and later reduces my taxable income at the end of the year.

2. a Roth IRA is good because you contribute cash today and can withdraw it tax-free at retirement. However you can only contribute your own cash (that's already been taxed) so if your tax rate is going to be lower in your retirement years than it is today, you might not come out as far ahead as you'd like. However the growth of the IRA over the years will usually outweigh this easily.

3. The general rule of thumb is to take 120 and subtract your age and that's the percentage of your retirement fund that should be in stocks; the rest should be in bonds and money market. and make sure that no more than 10 percent of your stock ownership falls in one company…just ask the people who were counting on Enron for their retirement.

Good luck

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Categories : 401k or ira
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How acn I roll over my 401k-if I go to work for my husbands business?

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Wednesday, August 31st, 2011

I have 15 years with my current company
would like to go to work for my husband,he has
a small business,how can i roll my 401-k over
to a other account ?

You would roll over into a self directed IRA.

You actually have a few options. The simplest way to roll over your 401k is into a self directed IRA. Call your bank, open an IRA money market account and then choose your investments. It's that easy. a check is mailed from your 401k company to the bank and directly deposited into your IRA money market account. this is called a "qualified rollover" and is a non-taxable event. once the funds are in the account the sky is the limit on which investments to choose from.

There may be a better way to set up a retirement plan if your husband owns his own business. it is called a simplified employee plan (SEP-IRA) and if you and your husband file taxes jointly may be a more tax efficient option. Set an appointment with your banker or financial planner and discuss both options before making your final decision.

As always, I can be reached at the branch.

Frank
864-609-1600

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Categories : 401k roll over
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What are the limits on my wife contributing to an IRA if she doesnt have a 401K at work?

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Wednesday, August 31st, 2011

I do have a 401k and contribute to it but not to the max and it is a joint IRA. If she is eligible, what would the limit be?

So she does make wages. go to IRS.gov and get the info. I think it's about $4,000. It used to be $2,000. sometimes there are other variables that affect what can be contributed, like age to retirement. so you got to check it out because I don't know.

the limit is $4,000 and if she is over 50 years old, she can add an extra $1,000 for a total of $5,000

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Categories : 401k limits
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Can I default my 401k account and receive my money, even if my company's 401k plan states you cannot do that?

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Monday, August 29th, 2011

I want to default my 401k and get my money due to hardship created by illness, I am aware of the penelties. my companys HR department states that that is against plan rules and cannot be done under any circumstances.

If they tell you it can't be done, under any circumstances, then it can't be done.
Yahoo answrs can't help you.

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Categories : plan 401k
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Obama and 401k withdrawals?

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Sunday, August 28th, 2011

Ok,now that Obama has been elected can anyone tell me when he might make it possible to remove money from our 401k without a penalty?I know he said he would do this when he takes office,I know that is in January-so will anyone guess and say when they think this will happen if at all?I also want to say how proud I am of the way John McCain handled last night.no matter who you supported he was a true gentleman.GOD-bless

I am hoping that all will be well with the new president but the voting record that he has had during his short time as a senator worries me. as for the 401k I woudlnt make any plans on getting that money tax free. Trust me taxes are going to go up. I hope I am wrong but in order to pay for everything he said he wants to do there will be no choice.

You're still going to have to pay income tax on anything you pull out of your 401k. The benefit of a 401k over other types of savings, is you get to invest the money you would pay in income tax, until you cash out.

Well, probably about the same he signs legislation to take your 401K and mandate that it be invested in 3 % bonds. That's what the liberals in Congress want to do. take YOUR MONEY, and tell YOU HOW TO INVEST IT.

He's not President until Jan 20th, and he'll want to develop a complete economic plan before he acts – don't expect anything immediate.

The plan if it goes into effect will have to go through both houses of congress first. I wouldn't count on it real quickly.

be prepared for most of his fickle campaign promises not to come true anytime next year… even if we have a now dominate democratic gov't…. we still have to put up with the bureaucracy of all their bs.

No, you might as well take it all out because you're going to need it.

You actually BELIEVED him?

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Categories : 401k withdrawals
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Can I exceed my annual Roth IRA contribution?

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Sunday, August 28th, 2011

In 2007, I can only dump in $4,000. In 2008, that goes up to $5,000. the problem is that it's not enough. Can I jack up my after-tax contribution amount on my 401k with my employer & then roll that over into my Roth IRA?

No. you can max your 401(k) and, if you don't exceed the income limits, also max your Roth IRA. But you can't do the rollover.

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Categories : contribution roth ira
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Can you contribute to the traditional ira and claim deductions incase you worked part of the year?

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Sunday, August 28th, 2011

Can you contribute to the traditional ira and claim deductions incase you worked part of the year for the employer that has retirement plan and you contributed to 401K?
Considerting that you were employed for rest of the year.

Did not get any clear answer after lot os searching. Any ideas?

You need to do the worksheets in publication 590.

The fact that you were covered by the 401K in the rest of the year (whether you contributed or not) affects your ability to deduct for an IRA even if you weren't covered for the first part of the year.

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Categories : IRA
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Jean Chatzky: Don’t cut back on your contributions!

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Wednesday, August 24th, 2011

TODAY Money financial expert Jean Chatzky joined us for a live Web chat Wednesday to answer your questions.

Here’s one of her answers to questions from the live chat. (See below for the full Q&a and video of Jean’s appearance on TODAY Wednesday morning.)

“Since the market dropped, I cut back on my contribution to my 401K. Do you think it’s a good idea to contribute to an IRA or a Roth IRA with any extra money I have?”

“I don’t understand why you would do that. a 401(k), typically, is an account where you are allowed to invest the money in a menu of choices. You could move the money around — but not contributing doesn’t make sense to me. also, the fall in the market is precisely the wrong reason to scale back contributions (unless you need the money in the short term), it’s a way to buy low so that later you can sell high.”

Here’s the full chat archive:

If you have a question for our TODAY Money experts, submit it here.

To sign up for an e-mail reminder for our next chat, click here.

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Categories : roth ira contribution
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Can I use my 401 K to purchase things for my bsns without paying taxes on the mony?

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Saturday, August 20th, 2011

I need to purchase some key items for my start up bsns. Can I use 401 k funds with out getting hit for the full taxes? Can I borrow against a 401K for my business?

If it is a current employer, you are unlikely to be able to remove anything from it (unless older that what the plan considers retirement age). If they allow 401K loans it is usually only for very limited purposes (see details of your specific plan).

If it is from a former employer, you cannot borrow from it, and anything you take out of it would be included with other income for tax purposes (plus 10% penalty if under age 59.5).

Give it up. you are not going to be able to use anything from your IRA or 401K towards a business without income tax and possible 10% penalty. and you cannot buy anything within such accounts that you or your family uses or has direct control over.

if you are still employed with the company that you had the 401(K) with you might be able to borrow the money against it
but if you no longer work for that company and your start up business is your only employment, no, you cannot borrow on the 401(K)

No.

No matter what you use the money for, it's taxable income to you if you take a distribution. It's also subject to the 10% penalty unless an exception applies.

If you take a loan (assuming they will let you), it's not taxable as long as you successfully pay the loan back.

If you take a loan against your 401K and pay it back as scheduled, there's no tax.

If you withdraw money, or take a loan and don't pay it back on schedule, it's taxable.

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