Jonathan asked:

If I buy 401k, is it possible to debut (put) 50% of my
monthly paycheck to 401k each month. I earn about $4,500 a month.

When I agree to buy 401k, does my monthly paycheck
get deduct for the next 12 month based on the percentage
taken out to equal the yearly maximum of $15,500?

or

Within 6 months, they will take out up to the maximum of $15,500 at a higher percentage to reach the maximum of $15,500/year?


Question posted courtesy of: Vanessa

Wayne D asked:

My company doesnt match 401k until 1 year of service and that will be end of July next year. I am currently contributing 75% of my semi-monthly paycheck into 401k. Is this smart? I heard its smart because I avoid federal taxes. My take home pay sucks but I dont really need the money right now. The investment options I have are stock, mutual funds (large/medium/small cap etc) and also a stable fund (not much interest).

In my Rollover IRA account from my previous employer, only a small amount is invested, but it’s a life-cycle fund (where it will go until the year I retire) and the ROI is high and I can do that since I am young.

Should I stop investing in 401k and contribute my money to my life-cycle fund/IRA account ($4k max per year) which has a higher interest rate? or should I keep 401k, keep avoiding taxes, and contribute 60% to company stock based on my deductions and 40$ to the Bond investment (stable fund)? Thanks I’m trying to make my money work hard for me.


Question posted courtesy of: Michael

ladyluck27 asked:

I opened a 401K with my former employer. I was only with the company a short time, but built up savings in that account nontheless. I left the money in the account, thinking I would just roll it over to my new 401K once my benefits kicked in at my new job.
So today, I logged on to my 401K online account (from my former employer) and balance is now $0!!
Does my former emloyer have the right to take that money from me? It’s been 5 months since I’ve worked there, but something just seems fishy to me.
Any advice is appreciated!


Question posted courtesy of: Richard