horncusker asked:

Okay, my company merged with another company and we will have the option of cashing out our 401k - I have about 10,000 in it, however, I have about 5000 in credit card debt which is costing me around $250+ per month in bills AND my new company will allow us to contribute into a ROTH 401k. In addition I have a personal ROTH IRA that I can supplement with this extra money. My question is - or opinions that I am trying to gather is this - Does it make sense to become debt free at this time so that I can supplement ROTH investments that will allow me to pay taxes now and as I age and my income grows I will no longer be responsible for paying taxes on my compounding interest. Whereas this 401k - when I cash it at retirement (which I will be at a higher tax bracket) or roll it, I will have to pay taxes on it anyway.

I am aware of the FIT deduction that will happen if I cut the check.

What do you think yahooers?


Question posted courtesy of: Ella

upr_wis_rvr_yacht_club asked:

Is there a way to set up a new “C” Corp with an accompanying 401k plan, roll the proceeds from an existing 401k into new “C” Corp. 401k plan, have the new “C” Corp. 401k plan buy shares of stock in my “C” Corp, and then use the “paid in capital” from the “C” Corp’s 401k plan purchase of “C” Corp stock to fund ongoing business operations?


Question posted courtesy of: Antonio

ahowley asked:

I’m close to reaching my 401K maximum investment of $15, 500 for the year. Afterwards, I can invest post tax money into my 401K. Does is make sense to decrease my pre-tax investment from 30% per pay check so that I continue investing with pre-tax dollars or should I max out the 401K plan and invest 30% post tax?

Thanks.


Question posted courtesy of: James

Nick asked:

I just recently got laid off from my job of 6 years. I invested in the companies 401K program and I see I have a nice amount saved in my 401k account. Since I am no longer an employee what should I do with this money. Right now im kinda ok on my feet but I know after the holidays come around im going to be broke and its hard to find a job in the mortgage industry. I kinda want to take the rest of the year off anyway. Should I pull out and take the 20% cut the feds will take. Should I rollover to an IRA (Whatever that is) or should I invest it in some other account? Im confused and need suggestions before I make the calls to the 401k people and my tax man.
No I already have a 401K.


Question posted courtesy of: Gertrude

College Guy asked:

Hi,

I am 20 years old working part-time and a full-time student. I am currently enroll in my employer’s 401k program. I am putting 5% of my paycheck for 401k (pre-tax) and 4% to buy the company’s stock at a 15% discount rate (post-tax). This is the first time I have 401k, and I have no idea in which fund to allocate my 401k funds. I know at my age I should 100% in stocks, but I don’t know which type of stocks. I know this might not be the best place to ask, but any help is welcome. Thanks.


Question posted courtesy of: Barbara

rushfreak01 asked:

I have heard that investing some of your paycheck into a 401K will actually make you’re take-home pay more because of the tax break. Lets say i make 2000 a paycheck minus taxes… so about 1400 a paycheck (assuming taxes are 30%)…if i invest 6% of my 2000 before taxes into a 401K, will that percentage of a tax break actually put more money in my paycheck after taxes and the 401K are taken out rather than just getting taxed on the whole 30%?


Question posted courtesy of: Mary

Hydee asked:

I have two huge credit cards that need to be paid off, as well as two small ones. I was thinking about taking out a loan from my 401K to pay the small ones off and some of the big ones. It won’t pay them completely off. I am trying to figure out how the credit card companies calculate their minimum payments. I need to know this in order to figure out how much my monthly payments will be so that I can fit everything into my budget. It is hard because I can take alot out of my 401K but like I said it won’t pay the big credit cards off all the way so I still have a balance that I have to worry about, as well as my 401K loan payment. It is just really difficult to make this all work right so I don’t get in over my head. If anyone can give me some helpful advice I would appreciate it.


Question posted courtesy of: Dawn

yen asked:

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%??


Question posted courtesy of: Monica