What is the tax consequence of the 401k retirement plan?

What is the tax consequence of the 401k retirement plan?
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1 Answer

Answer :

A good tax consequence of a 401k retirement plan is that you can literally save money as the funds that are ususally tax-free. If you withdraw from your 401k plan, there is usually a large penalty.
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Related questions

Are there any circumstances where I can take an early withdrawal without penalty from a 401K retirement plan?

Description : Are there any circumstances where I can take an early withdrawal without penalty from a 401K retirement plan?

Last Answer : There are a number of restrictions and requirements regarding early withdrawals from a 401K. Additionally, the IRS regulations often change. Your best bet is to discuss your situation with your fund manager or consult with your tax professional.

How to Set Up a 401k Retirement Plan Without an Employer?

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Last Answer : Not everyone works for a company that supplies its employees with 401k retirement plans. Many companies simply do not offer them. Other people may be independent contractors or small business owners. Whatever ... income than what was contributed into the plan during a certain part of the tax year.

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Who can I talk to about my 401k retirement plan?

Description : Who can I talk to about my 401k retirement plan?

Last Answer : You can talk about your 401k retirement plan to people that know about retirement or companies that deal with retirement. Basically it is best to talk to people that deal with retirement.

Where can I find any information on guaranteed retirement account proposals and claims of confiscation of 401k funds?

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What will happen if I decide to withdraw money out of my 401K account before I reach retirement age?

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Last Answer : You will get nailed with at least a 10% penalty and have to claim it as taxable income besides, unless you can do it on a 401k loan wich you repay to yourself at a set interest rate. (a much better idea)

i was told from the 401k retirement that im with in order to file a hardship i have to take out a loan from my 401k is that true?

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Last Answer : That is not true. A hardship determination allows you to make an early withdrawal without paying a penalty. You will however have to pay normal taxes on it.

How can I get a 401k to help with retirement?

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Last Answer : What you do is deposit money into the 401k during your entire working career. Then, when you retire, the money is there for you to live on (provided that you don't withdraw any money). Social security ... to live on in this economy. With the 401k, you can have extra funds when you aren't working.

When saving for retirement, what is better, a 401k or a ROTH ira?

Description : When saving for retirement, what is better, a 401k or a ROTH ira?

Last Answer : It is better to do a 401K if your company will match any money that you put in. Put in only what they will match and put the rest in a Roth ira for the best outcome.

Are there methods for retirement investing other than a 401K?

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Does a 401K or Roth IRA provide greater tax efficiency?

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What are the tax consequences of a 401k rollover from my old job?

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Last Answer : A 401k rollover is an option that comes with very few tax consequences. If you setup the rollover incorrectly you could face tax liability that is unexpected.

how much state tax is withheld from 401k at age 62?

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Last Answer : To be safe right around 8 percent

where do i declare my 401K on my 1040 tax form?

Description : where do i declare my 401K on my 1040 tax form?

Last Answer : how others will about your tax matters i am not an tax officer to know it

Where can I go to find out if the 401k calculator tax is a good calculator?

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Last Answer : One website where you can find some of the pros and cons for the 401k calculator tax is: http://www.401kplanning.org/calculators-tools/401k-savings-calculator/

What is the difference between a 401k plan and an IRA?

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Last Answer : They are basically the same thing but have different names. The only other difference is will be the deductibility of the 401K compared to the IRA.

How do cash balance plans differ from a 401k plan?

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Last Answer : A 401k plan invest your money for you. A cash balance may earn a small amount of interest but has no risk.

How can I cash in my 401K plan?

Description : How can I cash in my 401K plan?

Last Answer : You can cash in your 401K plan upon retirement or after a penalty before your retirement age.

Who can enroll into a 401K plan?

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Last Answer : A legalized us citizen can enroll into a 401k plan

how can i get refunded for overcontribution to my 401k plan the previous year?

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Last Answer : Your 401k plan administrator will automatically reimburse you when you make an over contribution. You will also receive a form for tax reporting.

how do i get a loan against my 401k plan and pay back through my job ?

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Why should one rollover a 401k plan?

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Last Answer : Many times, when you leave an employer, they may ask you to take your 401k plan with you, especially if the plan balance is low. In these cases, many people chose to rollover the 401k instead of cashing it out.

Can I roll over my 401k plan from my last employer to my IRA account?

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Last Answer : Yes you can in fact do this. You will have to speak to the company who has your IRA and discuss with them the steps in order to do this.

How do you terminate a 401k plan?

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Last Answer : The details of how to terminate a 401k plan should be included in the plan itself. Depending on the plan there may be limitations or fines involved in actually terminating the plan itself.

What is a 401k plan and how does it work?

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Are you penalized for withdrawing money early from your retirement pension plan?

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Pension Retirement Calculator Helps Plan Your Retirement Years?

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