Comments on: Common 401k Planning Mistakes and Tips to Avoid Them http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/ 401k Planning tips and help Thu, 26 Aug 2010 02:41:48 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: C Muncey http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-177 C Muncey Thu, 26 Aug 2010 02:41:48 +0000 http://www.401kplanning.org/?p=705#comment-177 Should I take the TIAA CREF and Vanguard contribution and roll the company portion into my new 401 K?? Should I take the TIAA CREF and Vanguard contribution and roll the company portion into my new 401 K??

]]> By: C Muncey http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-176 C Muncey Thu, 26 Aug 2010 02:39:33 +0000 http://www.401kplanning.org/?p=705#comment-176 48yrs old. Vested in company 401k. I also contribute money to TIAA CREF and Vanguard through the employer. Total - 200K If I opt to take the whole amt. How much will I be taxed? (10 or 20% off the top) If I take the whole amt and use some money and then reinvest the other portion into a IRA would I be taxed on the full amt or only the amt I actually used?. 48yrs old. Vested in company 401k. I also contribute money to TIAA CREF and Vanguard through the employer. Total – 200K

If I opt to take the whole amt. How much will I be taxed? (10 or 20% off the top)
If I take the whole amt and use some money and then reinvest the other portion into a IRA would I be taxed on the full amt or only the amt I actually used?.

]]> By: Christine Muncey http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-175 Christine Muncey Thu, 26 Aug 2010 01:48:09 +0000 http://www.401kplanning.org/?p=705#comment-175 I have worked for 22yrs at a company. I was planning to leave and work closer to home. If I have $200,000 saved in my retirement account, and decided to take the money, what would happen? I have been reading and think I understand. 1. Will my company take 20% for tax purposes. 2 What I get for money in hand, I will have to reinvest it in 60days to avoid further tax penalties. 3. If I use 60K and reinvest into a Roth IRA ,would the total some of 200K be taxable or only the 60K I actually used. I have worked for 22yrs at a company. I was planning to leave and work closer to home. If I have $200,000 saved in my retirement account, and decided to take the money, what would happen? I have been reading and think I understand.

1. Will my company take 20% for tax purposes.
2 What I get for money in hand, I will have to reinvest it in 60days to avoid further tax penalties.
3. If I use 60K and reinvest into a Roth IRA ,would the total some of 200K be taxable or only the 60K I actually used.

]]> By: kannan http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-172 kannan Mon, 19 Jul 2010 21:19:48 +0000 http://www.401kplanning.org/?p=705#comment-172 Hi J VAZQUEZ, There are self-directed IRA plans, like the ones run by 'Guidant' that let you roll your 401k into a self-guided IRA and use the entire money in to buy business or stock or real estate. The only trouble is that all profits from your buisness will have to go back into the self-guided IRA for your retirement. Not sure if you can take a small salary for yourself though. Otherwise you can always take distributions from your 401k but will be slapped with income taxes + 10% penalty Hi J VAZQUEZ,
There are self-directed IRA plans, like the ones run by ‘Guidant’ that let you roll your 401k into a self-guided IRA and use the entire money in to buy business or stock or real estate. The only trouble is that all profits from your buisness will have to go back into the self-guided IRA for your retirement. Not sure if you can take a small salary for yourself though. Otherwise you can always take distributions from your 401k but will be slapped with income taxes + 10% penalty

]]> By: admin http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-156 admin Mon, 03 May 2010 23:51:59 +0000 http://www.401kplanning.org/?p=705#comment-156 Yes you can have a Roth IRA and a traditional IRA at the same time (subject to IRS limits). Whether or not you should have both is wholly dependent on you personal circumstances and the array of other savings vehicles available to you. Yes you can have a Roth IRA and a traditional IRA at the same time (subject to IRS limits). Whether or not you should have both is wholly dependent on you personal circumstances and the array of other savings vehicles available to you.

]]> By: KC Clayton http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-154 KC Clayton Sat, 01 May 2010 21:32:29 +0000 http://www.401kplanning.org/?p=705#comment-154 Can you have a traditional IRA and a Roth IRA at the same time. If you can is it reccomended or why should or shouldn't I do this. Can you have a traditional IRA and a Roth IRA at the same time. If you can is it reccomended or why should or shouldn’t I do this.

]]> By: EjSamuels http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-138 EjSamuels Fri, 09 Apr 2010 15:24:33 +0000 http://www.401kplanning.org/?p=705#comment-138 My new employer offers a 401K but does not match. Nor is there a possibility for profit sharing disbursment from the employer. I would like to do one of the following: contribute to the 401K, contribute to an existing IRA or start a Roth IRA and contribute the maxium amount allowable each year ($6000?) So, of these three options, what is recommended? I'm 54 years old My new employer offers a 401K but does not match. Nor is there a possibility for profit sharing disbursment from the employer. I would like to do one of the following: contribute to the 401K, contribute to an existing IRA or start a Roth IRA and contribute the maxium amount allowable each year ($6000?)
So, of these three options, what is recommended? I’m 54 years old

]]> By: admin http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-136 admin Wed, 07 Apr 2010 17:43:39 +0000 http://www.401kplanning.org/?p=705#comment-136 You will be liable for taxes on funds withdrawn; but there should be no penalty given that you are beyond age 59.5. This <a href="http://www.401kplanning.org/calculators-tools/calculate-cost-of-401k-cashout/" rel="nofollow">401k cashout calculator</a> can give you a good overview of the impact of making a withdrawal. You will be liable for taxes on funds withdrawn; but there should be no penalty given that you are beyond age 59.5. This 401k cashout calculator can give you a good overview of the impact of making a withdrawal.

]]> By: kb http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-135 kb Tue, 06 Apr 2010 21:14:06 +0000 http://www.401kplanning.org/?p=705#comment-135 I'm 64. I want to take a small distribution(withdrawal) from my 401K and leave the rest. Do I pay income tax on this and/or a penalty to withdtaw it? Thank you I’m 64. I want to take a small distribution(withdrawal) from my 401K and leave the rest. Do I pay income tax on this and/or a penalty to withdtaw it?
Thank you

]]> By: Mitchell http://www.401kplanning.org/common-401k-planning-mistakes-and-tips-to-avoid-them/comment-page-1/#comment-118 Mitchell Thu, 25 Feb 2010 01:06:32 +0000 http://www.401kplanning.org/?p=705#comment-118 I don't think you can withdraw the total without penalty. I don’t think you can withdraw the total without penalty.

]]>