What are the differences between 401k benefits and traditional IRAs?

What are the differences between 401k benefits and traditional IRAs?
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Answer :

The main difference between a traditional IRA and a 401K plan is in how they are obtained. A traditional IRA can only be obtained privately through your investment company or lending institution. A 401K plan is typically obtained through your employer; however, since 2002, self-employed individuals are allowed to obtain individual 401K plans.
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What steps do I need to take in order to get my empoloyees 401k benefits It's a small private business.?

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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?

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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?

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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?

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

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

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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.

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

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

Can you lose money in your 401K?

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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?

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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?

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

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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?

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

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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?

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What are you doing with your 401k?

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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.

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.

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?

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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.

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)

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.