IRS: 401k Hardship Withdrawal Information
The IRS recently updated its 401k Hardship Withdrawal information. This information is for anyone who is out of work, had extremely high medical expenses or needed, for some other reason, to make a withdrawal from a 401(k) plan. If you qualify for a hardship withdrawal, you will not owe penalties on…
Ilyce Glink Show Notes - Christmas Week, December 20, 2009
Ilyce Glink Show Notes - December 20, 2009. Merry Christmas. It's hard to believe Christmas is here. Census numbers. How to Invest in 2010 - box office is open for the newest ThinkGlink/Real World Seminars event. Buy now to get the lowest price for this event. This is our best deal and it's better…
ThinkGlink Radio Show for Nov 22, 2009
On today's Ilyce Glink Show, we looked at the stock market pullback this week, the housing and unemployment numbers, Ilyce's Turkey Recipe, 401(k)s and Roth 401(k)s, Ilyce's refinancing deal, and other financial and real estate topics. We also answered your questions about money and real estate…
ThinkGlink Radio Show for Aug 23, 2009
Today on the Ilyce Glink Show, Ilyce took lots of questions from callers, and discussed gift taxes and annual limits on giving without incurring a tax and how to transfer a 401k to a new employer's account, and how to deal with lost interest from the 401k transfer. She also took more questions about…
How Do You Withdraw an After Tax 401(k) Contribution?
What happens when you make after tax contributions to a 401(k) plan and you now need the money? Can you withdraw just the after tax contributions and not pay any tax? Or, will the IRS require you to withdraw the funds in a proportionate way, based on the total amount in the plan?
Investing Beyond the Company 401(k) Match
Does your company match your all or part of your 401(k) contribution? With the economy going the way it is, some companies have been cutting back on their 401(k) account matches in order to save big bucks. For some companies, eliminating the 401(k) match means saving hundreds of millions of dollars…
Should I Invest Beyond The Company Match in My 401(k)?
If you work for a company that offers a match for a 401(k) should you take it? And, how much should you contribute to the 401(k)? If the company offers to match 50 percent of the contribution up to the first 6 percent of your salary you contribute to the 401(k), should you contribute over and above…
Are You Using Your 401k to Pay For Your Housing Expenses?
What happens when your luck runs out? You go into backup mode, and start working through your assets. Then, it's time to tap your retirement savings, even though your golden years may be just around the bedn. But what happens after your 401(k), 403(b), 457 retirement plan IRAs are depleted? How do…
Moving 401(k) To Live Off Interest
Moving or withdrawing your entire retirement account will result in owed income taxes. If you’re ready to retire, a financial advisor can help you set up your accounts to help you live.
Borrowing Against 401(k) Account
Not all employers allow employees to borrow money against their 401(k) account. If you want to borrow money against your 401(k), the person at your job who deals with benefits can help you do it. Most companies have rules for how much you can borrow from your 401(k), as well as the interest rate and…
How Much Of Paycheck To Put In 401(k)?
If your employer offers matching for your 401(k), it’s wise to invest as much of your paycheck as possible, up to the amount of the match. If you are starting your 401(k) later in life, you should be stocking away as much as possible. The closer you get to retirement, the less time that 401(k) has…
If you start a new job, you’re new employer may not accept a 401(k) rollover from your previous employer. One option is to roll your 401(k) into a self-directed IRA. If your 401(k) has done well, you may be able to leave it with your old employer.
Employer Limits 401(k) Contributions
Employers are allowed to set their own limits on how much you can contribute to a 401(k). Even though the limit for 401(k) accounts has increased, you may not be able to contribute that much in an employer-sponsored 401(k) plan. A Roth IRA might be a way to build retirement funds outside of your…
Use Retirement To Pay Off Massive Credit Card Debt?
Even if you’ve reached the age to withdraw from your 401(k) penalty-free, you’ll still have to pay taxes to take out a large chunk of it. If you’re considering using the funds from a 401(k) to pay off debts, think about using the equity in your home instead. Dipping into your 401(k) will cut into…
Borrowing From 401(k) For Down Payment On House
It's generally not a good idea to borrow from your retirement accounts, but borrowing to invest in real estate is essentially trading one type of investment for another. The risk is that real estate doesn't always appreciate in value, which means your retirement could take a double hit. There may be…
A reader sent me this question this week:
Q: I have a growing concern that the Obama administration will seize all 401(k) accounts as a "fix" for social security. The Democrats in Congress were talking about doing this as recently as October, 2008. Am I being paranoid? What do you think? Should I be…
Target-Date Mutual Funds For Auto Enrolled 401(k) Plans
In recent years I've heard that employers have started to auto-enroll employees into 401(k) plans. It's great to know that employees still have a say in where their money goes. I guess the assumption is that people who don't pay attention to their pay stubs won't notice if some of their money gets…
When choosing funds for a 401K retirement plan, you can use a variety of planning programs on the internet: Morningstar, U.S. News & World Report or Quicken. One of the top investment choices for a retirement plan are mutual or index funds. Vanguard is the oldest of the index funds and is the…
When setting up a retirement plan, you should always be sure you have a diverse set of investments. You should never put all your retirement money in one place, like an employee stock option program. That is dangerous given the economy. Instead, you should put money in a Roth IRA or a conventional…
If your employer's 401K retirement plan's only option for investment is an expensive 6% front load fund, you should gather your colleagues together and demand better choices. Do some research and identify other places to invest your cash. Then petition your employer to make this change. Once this is…
You can use your 401K retirement plan to help save for college by rolling the money into a Roth IRA. The money in a Roth IRA grows tax free and you are able to withdraw your earnings after five years to pay for tuition expenses. A Roth IRA is also a good way to save for college because it keeps the…
If you have money saved in a 401K retirement plan, you may be able to take out a loan on that money. However, if you are less than 59 1/2 years old, you will pay a penalty on the amount plus taxes. Avoid taking out a loan from your 401K retirement plan to pay down credit card debt. If your 401K…
If you've maxed out your 401K retirement plan at work, you have a few options for opening an IRA depending on your income level. You're only allowed to contribute to a conventional IRA if you have a low income. To open and max out a Roth IRA for retirement, your income has to be under $95,000 if…
If you want more control over your 401(K) retirement savings, think about rolling it over into a self-directed IRA. Open a self-directed IRA for your retirement at any financial institution and have them do an electronic transfer so you don't "touch" the money. Then you will have to decide on where…
Investments For Retirement Savings
Deciding how much to invest for retirement can be tough but www.money.com has a calculator that can help with your financial planning. If you want to talk to someone about financial planning for retirement, you can call 888-FEE-ONLY for a help. If you contribute regularly to a 401(K) or IRA and are…
