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.
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.
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%??
Converting to Roth IRA Too Taxing? Consider Roth 401(k).
This tax season provides a one-time-only-opportunity that helps spread taxes owed over two years for people who may want to convert some or all of their traditional IRAs into a Roth IRA.
Read more on PR Newswire via Yahoo! Finance
Does anyone know something about it? Any references, or advice?
How do taxes work when Canadians who may have worked in the US withdraw money from their 401k or ROTH IRAs at retirement? Someone told me that a 401k can be withdrawn (and taxed in the US), but when the money is taken to Canada it will not be additionally taxed. However, the ROTH IRA would be taxed as new income in Canada. Is this true? If so, this defeats the whole purpose of the tax free growth provided by the ROTH IRA.
I am currently working in the US but am a Canadian Citizen and hence dont really know where i will be come retirement (40 years away) so I am not sure as to where I should invest. I am trying to collect details so I can make an informed decision.
Thanks
Mathew, I know how the taxes work if you remain in the US. I need to find how they work if you plan to take the money to Canada. Of course I dont know how things will work in 40 years, but how do they work now?
I have contributed the $4000 annual limit to my traditional IRA, and I just remembered that I also rolled over about $1500 from my last employers 401k plan. Will I be penalized for going over the annual limit?
Which investing programs should be avoided? What do people think about Sharebuilder?
I have a fulltime job, and also am an independent contractor. I usually contribute 4k annual to my traditional IRA to get the tax write-off. I heard there are some limitations if you make more than a 100k annual.
For the past 4 years I was self-employed and contributed $5000 annually to a traditional IRA (before-tax). Now I work at a company that has a 401(k) plan and matches 3% (vested over 5 years). So my questions are, can I contribute to BOTH? And what are the limits? My w-2 will have the “ret” box checked on it, so I might get hit with an over-contribution if I contribute too much. But right now I am looking to save for retirement and this is a good year for me to stick as much away as possible.
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