Jul 9

I have a question about 401K and Roth IRA contribution limits that no one seems to be able to answer for me. I contribute about 10% of my salary to my 401K plan each year. My employer matches 5%.  I also have a Roth IRA that I had before I started with my present employer.

My question is about contributions to the Roth IRA. The accountant at HR Block told me that I cannot contribute to my Roth IRA since I contribute to a 401K Plan.  Is that true?

I find it hard to believe that I can’t tuck away more retirement into the Roth IRA. I’m turning 50 next month.

Although I can increase my contribution to the 401K Plan, I would prefer doing a maximum contribution to my Roth IRA, because my investment choices are much more robust that the limiting number of mutual funds I’m allowed to invest in with the 401K.

I hope you can answer this for me, and tell me what I’m allowed to contribute to each retirement account.


Aug 8

I have to have a $25,000 surgery not covered by insurance. I’m thinking of cashing out my 401K and someone told me that you can do it tax free for medical bills. Is this true?
I’m only 25 so it’s not like I can’t build back up my 401K…


Jul 30

I am currently contributing to my 401k plan at my present job. I don’t like the choices they give me and the brokerage plan charges $18 per trade and $100 a year maintenance fee. Can I continue to fund the 401k plan and transfer the moneys to a Roth IRA or similar plan at another brokerage?


Jul 25

When looking at my 401k statement, there is an “Earnings” section and a “Appreciation/Depreciation” section. What is the difference?


Jul 17

Can I have an IRA and also a 401K plan at the sametime?

I am planning on getting a Traditional IRA plan so I can put away $4000 tax free for this year. However, my company may possibly introduce a 401K plan soon.

If I invest $4000 in an IRA account this year, and if my company introduces a 401K plan a little later this year, am I allowed to contribute to both IRA & 401K plans in the same year?

FYI, my filing status is married filing jointly and my wife has a 401K plan at her work place.

Would appreciate any guidance here. Thanks.


Jul 8

My wife’s company just added a 401k and I am considering contributing to it but was wondering if there are limits to max 401k contributions if we file married/jointly? I currently max out my 401k account and I know with our combined income status IRA contributions are no longer tax deductible so I am worried adding to her 401k will bring the same limitation.


Jul 5

I want to understand if the 401k loan interest schedule is different from a mortgage interest schedule. For example, in a mortgage payment the interest is the most of it. Is it the same with 401k loan?
Reason for asking is to see if it makes financial sense to use 401k loan to pay off a mortgage on a property. Thanks!


Jul 2

I know that the government has changed the distribution age several times in the past on 401k plans but I was told that the government could change the tax rate anytime and for any amount.


Jun 29

And by individual stocks, I don’t mean the company’s stock. I’m talking about non-employer stocks traded on an exchange.

In addition, do most 401k plans allow the participant invest in any mutual fund of his/her choice? Or do most 401k plans offer only a limited mutual fund selection?

*I know plans vary. But, this is just a general question.


Jun 19

what does this mean???
employer matching contribution
One half of a participant’s elective deferral amount up to 6% of eligible compensation that is deferred. The maximum matching contirbution, therefore is 3% of a participant’s eligible compensation, Any deferrels over 6% of eligible compensation are not matched.

so does that mean I can put in 3% and the company will match it 3% as well to make a maximum of 6%????

or can I make a contribution of 6% and they will match that 6% making a total of 12%??


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