Richard D asked:

I see many questions on here regarding 401K’s which i assume are available in the United States.

They sound quite similar to Regulated Complying Superannuation Funds in Australia.

I have worked in the Superannuation industry in Australia so I understand in detail how Australian super funds work and the rules relating to them.

I am specifically looking for information on how a 401K works and, if anybody knows about both superannuation funds and 401K’s, what the similarities/differences are.

If you only know about 401K’s then please put down what you know and I will be able to work out the differences and similarities.

My understanding is that 401K’s are retirement savings accounts which are preserved until age 62 except in certain circumstances (much the same as a super fund).

In the US does your employer make contributions into this account for you? Are the contributions compulsory? Is insurance available?

The more info the better.

Cheers
Are there any concessional taxation rules for contributions? How are fund earnings taxed?

Are benefits based on a formula (e.g. % multiplied by salary at retirement) or are they simply contributions accumulated with interest?

How are benefits taxed?


Question posted courtesy of: Randy

rainbow asked:

What happens to my 401k plan if I decide to leave USA and go back to Indonesia. I have my 401k plan for about 5 yrs. What are the consequences and how should I save from getting penalised ? I am resident in USA and 35 yrs of age.


Question posted courtesy of: Monica

skybelle24 asked:

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…


Question posted courtesy of: Alvin

Gato asked:

PRE-tax and AFTER-tax dollars.

If I contribute $$ using AFTER-tax dollars, would that have the same principals as the ROTH IRA or other ROTH plans in general?

Would my AFTER-tax contributions into my 401K plan grow tax free and also be TAX free when I go to withdraw it?

Thank you.


Question posted courtesy of: Sam

Bill K asked:

My employer does not contribute to my 401k. I want to move my money without penalty to another financial institution.


Question posted courtesy of: Anita

kimberly03051 asked:

I owe the IRS 7K for taxes this year. The money I owe is for taking an early withdrawal from our 401K to fix the bathroom. I’m not sure it counts as a hardship, but the bathroom was mold infested and needed to be gutted everything replaced. Can i take more money out of my 401K to pay the taxes due and not have to incurr another penalty?


Question posted courtesy of: Timothy

Oliver J asked:

If I quit mt job today. How long will it take to get my 401k check?

I am planning on closing it out, even with all the penalties so I can get out of this debt.!

Anyone have an idea how long it will take? Months maybe?


Question posted courtesy of: Jennifer

mcrevell80 asked:

My husband is starting business school in the fall. I completed his FAFSA and our expected personal contribution is $53k per year (yikes!).

He has a considerable amount saved in his 401k account and since we are both young it might make sense to use that 401k retirement $ towards school expenses.

Is there any way to do this without incurring huge penalties? I know we would pay taxes on the amount in the 401k, but if we are using it for education expenses it seems like there might be some way to use the money without paying the penalty…

Does anyone know of a good way to do this?


Question posted courtesy of: Randall

yogidog asked:

I have an existing traditional IRA and two 401k’s from previous companies. I’d like to consolidate accounts.

Is there reason I should roll the 401k’s into a rollover IRA instead of directly into my existing traditional IRA?

Are there any consequences regarding maybe later converting the IRAs to Roth IRAs later?


Question posted courtesy of: Vincent

401help asked:

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?


Question posted courtesy of: Walter