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

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

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 and any pension you get is not enough to live on in this economy. With the 401k, you can have extra funds when you aren't working.
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Related questions

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

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

Last Answer : answer:I hadn't even heard the term until you mentioned it. It's all news to me. I did a google search for Guaranteed Retirement Account and found the same links you can find doing that search. So I ... right-wingnuts. I don't know yet, but it's something else to know about'. Thanks for the Q.

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.

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

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

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?

Description : 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?

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

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

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.

Never Touch Your 401k Retirement Plan?

Description : Never Touch Your 401k Retirement Plan?

Last Answer : When something big comes up, such as the need for a new car, you may be tempted to use the money in your 401k retirement plan to pay for it. This is possible, but it is not wise. ... gratification of a new purchase quickly, but you will not have enough money to retire comfortable in the long run.

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.

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

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

Last 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.

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

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

Last Answer : Preparing for retirement has many options other than investing in a 401K with your employer. Individual retirement accounts can be set up through your bank. Be sure to check about tax regulations and withdrawal options for any account used for retirement.

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.

Does a 401k Withdrawal Make Sense to Help Get Personal Finances in Order?

Description : Does a 401k Withdrawal Make Sense to Help Get Personal Finances in Order?

Last Answer : The act of getting personal finances in order is an essential part of living a healthy and balanced life. This is because how a person spends money will be directly related to what their ... is because the same bad financial habits will continue but a valuable asset will have been depleted.

Wanting to take money out of 401k, does there need to be a reason?

Description : Wanting to take money out of 401k, does there need to be a reason?

Last Answer : answer:TL;DR - It depends, but probably. Rules vary a ton between plans. They're always going to ask and there are some good, helpful, reasons for them to. There are also a few steps to ... best first step is probably to give them a call and just ask questions until you know all your options.

Although I'm no longer employed, I have a 401K account through a former employer. Is there a way for me to continue contributing to that 401K account?

Description : Although I'm no longer employed, I have a 401K account through a former employer. Is there a way for me to continue contributing to that 401K account?

Last Answer : I am not a financial wizard or anything, but I’m pretty sure you can not continue contributing to that account. Have you looked into rolling it over into an IRA and then you can add your contributions to that IRA.

Would it be wise to use your 401K to pay off your house?

Description : Would it be wise to use your 401K to pay off your house?

Last Answer : Depends on the interest rate of your mortgage and if you'll incur a penalty for early withdrawal, but generally speaking, no. With regard to the early withdrawal penalty, the magic number is 59 and ½. Let' ... could earn more than 5% if you invest it. But as I say, YMMV, depending on your situation.

Is this a smart idea, to take a loan out of my 401k for?

Description : Is this a smart idea, to take a loan out of my 401k for?

Last Answer : answer:I think you should start a side fund, if you can, to save money for your venture, rather than to touch your 401K. I was in a financial pinch a while back for about the same amount of money and ... s something that can wait a month or two for you to pull together the money, I'd wait and save.

How can I find out whether I have a 401k from an old job?

Description : How can I find out whether I have a 401k from an old job?

Last Answer : There will be someone at the company designated as the 401K administrator, probably in Human Resources or Payroll. Call and ask who that is and speak to that person.

How is your 401K doing?

Description : How is your 401K doing?

Last Answer : This past year—it’s value increased between 5 and 6%.

Why are businesses rarely offered precious metal mutual funds by their 401k management company?

Description : Why are businesses rarely offered precious metal mutual funds by their 401k management company?

Last Answer : Even in mutual fund market, precious metals are very high risk and may burn even very savvy fund managers

How is your 401K doing?

Description : How is your 401K doing?

Last Answer : This past year—it’s value increased between 5 and 6%.

Can you lose money in your 401K?

Description : Can you lose money in your 401K?

Last Answer : Yes you can. If you’re invested in something, and it loses money, you lose money.

What happens if I cash out my 401k?

Description : What happens if I cash out my 401k?

Last Answer : It’s a bad idea…but YEP we’ve had to do it. I’m not sure what your tax bracket is however, you can withhold the taxes when you cash out. Make certain you do that or you’ll have to come up with cash at tax time in April.

Can you recommend some things I should think about and/or investment opportunities I should consider (e.g. 401k, Roth IRA, etc) and how to decide where to start?

Description : Can you recommend some things I should think about and/or investment opportunities I should consider (e.g. 401k, Roth IRA, etc) and how to decide where to start?

Last Answer : The most important thing is just to start!

Where did my 401K go?

Description : Where did my 401K go?

Last Answer : Didn’t you keep any of your annual statements? Did you roll it into your next employer’s plan?

How much have you lost in your 401k?

Description : How much have you lost in your 401k?

Last Answer : I have nearly 20 years before I can take anything out so I’m not even looking at it. It would hurt to much. Now would be a great time to be putting money in though, especially if you were strictly dollar cost averaging and not panicking.

What's your 401K looking like this quarter?

Description : What's your 401K looking like this quarter?

Last Answer : Like I wish I’d had followed my own instincts and moved the $$ after I lost the first $10K… But it’s getting better. I just wish I still had what I started out with in April of last year.

I have a good amount of money invested into my 401k as a 26 year old. I'm thinking about just cashing it out and taking the loss of half the money i invested. Which kills me to think about this. But I'm afread of this ecomony and this amero. Should I just cash it out? Or wait? I'm thinking I could loss more if I just left it in... Am I right?

Description : I have a good amount of money invested into my 401k as a 26 year old. I'm thinking about just cashing it out and taking the loss of half the money i invested. Which kills me to think about this. But I'm afread ... it out? Or wait? I'm thinking I could loss more if I just left it in... Am I right?

Last Answer : Don't do it. A 401K is an investment that is meant to grow over time. Sometimes you lose sometimes you gain, but short of an economic disaster you will gain if you leave it alone. The tax you will ... pay on the money you withdraw will be yet another loss on top of the future gains you will losing.

How do I track down a 401k from a previous job?

Description : How do I track down a 401k from a previous job?

Last Answer : Contact the accounting department for your ex-company.

I have credit card debt, and a 401k account from my last job that equals that debt, what are my options here?

Description : I have credit card debt, and a 401k account from my last job that equals that debt, what are my options here?

Last Answer : Are you sure about the $2k? I believe you lose more than that because you are looking at taxes + penalties for early withdrawal. I would try to negotiate with the credit cards to get a lower interest rate. Also, if you have any room, try to do a balance transfer (watch out for the transfer fee).

What are you doing with your 401k?

Description : What are you doing with your 401k?

Last Answer : answer:Buy low. Sell high. So buy, buy, buy. This too shall pass. :)

SHOULD I REDUCE 401K DEDUCTION TO PAY CREDIT CARD DEBIT?

Description : SHOULD I REDUCE 401K DEDUCTION TO PAY CREDIT CARD DEBIT?

Last Answer : If your tax savings and 401K investment return combined are higher than your credit card debt interest, then no.

I Need My 401k Money Now should I Borrow from 401(k)?

Description : I Need My 401k Money Now should I Borrow from 401(k)?

Last Answer : Borrowing from 401k is a good and also a bad idea. If you borrow from 401k, you will get deeper in debt. Imagine, you work hard and you are get taxed by the government to fund the 401k, ... . Borrowing money is not the solution to your Financial Problem. Always solve your problem, don't escape it.

All About Your 401k?

Description : All About Your 401k?

Last Answer : A 401k is a retirement plan that is used exclusively in theUnited States. An employee elects to have a portion of his or herwages diverted in a savings account, or a 401k. Some companiesoffer ... are tax deferrable, any money that you should choose toput aside will be deducted from your yearly ear

Why Should You Complete A 401K Rollover?

Description : Why Should You Complete A 401K Rollover?

Last Answer : There are multiple benefits to saving via a 401K plan. First,you get tax deferral with a regular 401K plan. The amountcontributed to your 401K reduces your current year federal andstate taxes. ... this problem is to perform a 401Krollover. While there are multiple options for a 401K rollover,

401k ira?

Description : 401k ira?

Last Answer : One of the most important aspects of having good financialresponsibility is properly preparing for retirement. To prepare forretirement you will need to set up long term investment goals,maintain your investments ... the other hand, an IRA is madewith post tax contributions. While this may sound

Is there any penalty with a 401K rollover to IRA?

Description : Is there any penalty with a 401K rollover to IRA?

Last Answer : You can avoid penalties doing a rollover, but you have to follow directions completely. There are deadlines that have to be met when requesting the procedure.

Is a 401K the same as an IRA?

Description : Is a 401K the same as an IRA?

Last Answer : A 401k and a IRA are different. A 401k is a employer sponsored plan while a IRA is not.

How would I open a 401k account?

Description : How would I open a 401k account?

Last Answer : A 401k is a employer sponsored retirement plan for small and large companies. You can visit sites like Fidelity.com to apply for a 401k account.

Is a 401k account really a good investment?

Description : Is a 401k account really a good investment?

Last Answer : That depends. If you are not a good saver and traditionally spend your money quickly, a 401K is a good investment to make sure you have money when you retire.

How do I open a 401k?

Description : How do I open a 401k?

Last Answer : Go to an investment broker (many banks have these) and open the account. You'll need to decide how much of your paycheck you want to put into the 401k. Note that there is a ... a company sponsored 401k available. Many times your employer will match your contributions up to a certain percentage.

Under what circumstances can you withdraw from a 401K without a penalty?

Description : Under what circumstances can you withdraw from a 401K without a penalty?

Last Answer : If you cannot get money from any other source and you need money for something like staving off foreclosure (financial hardship), you can withdraw money with no penalty. Taxes would be need to be paid and you can only withdraw the exact amount you need.

How do I request 401k information?

Description : How do I request 401k information?

Last Answer : According to the United States Department of Labor, there are many things that you may need to check about your 401k from your employer. To get a hold of your personal 401k, you will need to get ... get more information on your personal 401k, such as several options you can do to contribute to it.

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

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

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.

Which websites have the best information for people who need to rollover a 401k?

Description : Which websites have the best information for people who need to rollover a 401k?

Last Answer : When looking for great advice and resources on you 401k rollover check out www.securewealthplanning.com/. With expert advice, you'll get the information you need.

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

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

Last Answer : A 401k and a IRA are different. A 401k is a employer sponsored plan while a IRA is not. A Roth grows tax free, while a 401k is taxed when you withdrawl the funds.

Is your company required to give you information on how your 401k is invested?

Description : Is your company required to give you information on how your 401k is invested?

Last Answer : The company are required to provide this information. If it is a larger company they usually send a booklet to all of the 401K employees which mentions where the money is going.

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

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

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 do cash balance plans differ from a 401k plan?

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

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

What steps do I need to take in order to get my empoloyees 401k benefits It's a small private business.?

Description : What steps do I need to take in order to get my empoloyees 401k benefits It's a small private business.?

Last Answer : Ask at the finacial department for the paperwork on it.

What should I know before starting a 401k with my local bank?

Description : What should I know before starting a 401k with my local bank?

Last Answer : 401K policies are fairly standard, so bank-specific policies are less of an issue. The main thing that differs is what types of investments your specific plan will use. Be sure to ask about this.

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.