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401k Withdrawal Rules

A 401k plan is a special kind of retirement savings plan funded through contributions from payroll prior to tax deduction, and 401k withdrawal rules set out the circumstances under which you can take money out of your plan. The name of the plan refers to section 401k of the Internal Revenue Code, under which these contributions are permitted. Most programs provide a range of investment options, in mutual funds or in other types of asset with varying levels of risk. Continue article...

401k Limits

*Update: The 401k max contribution limits for 2013 have been released and are as follows: The elective deferral (contribution) limit for employees is increased from $17,000 to $17,500. The catch-up contribution limit for employees aged 50 and over remains unchanged at $5,500.

In the US 401(k) is a retirement savings plan that allows workers to invest the savings thus deferring income tax on the saved money until it is withdrawn. The employee nominates a portion of wages to be paid directly into the Continue article...

401k Rollover to an IRA

A 401k rollover to an IRA account typically happens when you leave a job, become disabled or reach age 59 ½. Although you can rollover your 401k to a 401k at your new employer, many people choose to put their money into an individual 401k account.

If you have had several jobs that each had their own 401k, moving your accounts to and individual IRA can make management of your funds easier and more convenient. Instead of having multiple accounts Continue article...

The Self-Directed 401k and its Essential Factors

Goodbye to the conventional thinking of our elders that one employment must last forever, which is basically not true at all! Who doesn’t want to enjoy the security of tenure, right? But things don’t easily fall into their right places. In fact, it is a tedious task to locate a generous employer who will feed you with the benefits that you crave for. Nevertheless, it is but common for the workers to shift into other fields, do job hopping, move Continue article...

Is a ROTH 401(K) Your Best Option?

Are you planning for your own future? How many years are you counting before you retire? Are you worried about your retirement savings plan? Have you selected the right plan for you? Or are you still undecided on what would be the best plan for your retirement savings? Let’s review some information about these questions and maybe later after describing and discussing all the information, you may be able to decide what to do today.

I’m sure you have heard about Continue article...

How Your 401K Works to Your Benefit

Many of the younger generation don’t often put much thought to how they will live after they retire. After all, it seems as if it is eons away. But retirement creeps up on you faster than you realize and proper financial planning in your younger years will be a key factor to the lifestyle you will be able to lead.

Many employers offer their employees a 401K plan when they are hired. Often it is not something you think about, but Continue article...

Does the 401(k) max contribution limit include the employer match?

There is a maximum limit on the total yearly employee pre-tax salary deferral. The limit is $17,000 for the year 2012, and $17,500 for the year 2013. Employees who are 50 years old or over at any time during the year are now allowed additional pre-tax “catch up” contributions of up to $5,500 for 2012 and 2013.

For future years, the limit will be indexed for inflation, increasing in increments of $500. In eligible plans, employees can elect to have Continue article...

Can I rollover my 401k while still employed?

In recent conversations, the question has come up as to whether you call rollover your 401k to a traditional IRA while still employed at the sponsoring employer. There seems to be some confusion about this and rumors of new laws that allow it.

The short answer to the question is, no. By law, you can not withdraw 401k contributions, that is, pre-tax salary deferrals, before severance, plan termination, turning 59 1/2, death, disability or hardship (and you can’t roll Continue article...

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