401K Financial Planning

ange asked:

I recently switched companies & I am cashing out my 401k. Its done, so I don’t want to hear about it being a bad decision. I am just curoius how long to expect to wait for the check. Can it be direct depoited? Would that speed it up? Does anyone have experience with this?


Question posted courtesy of: Fernando

Pacman asked:

Mother passed in Sept 05 (she was 61) and I’m the beneficiary on her 401K accts. Trying to determine the best route to avoid paying high taxes. In the short term, I am looking at possibly using some monies from the accts to help fund a new business. I’m in my mid-30s. What are my options?, how soon do I need to act?, and what is the best route to avoid paying a bunch of taxes?


Question posted courtesy of: Jay

Jen asked:

I see all over the internet people mentioning cashing in their 401k early to pay off debt. I just tried to do that exact same thing, yet according to my representative, (who put me on hold to verify with someone else) there is not one single legal way I can cash in my 401k early without qualifying for a Hardship Withdrawal and providing proof from a very limited list of acceptable documents for them to investigate.

Which is the truth here: Have people closed out their 401k early to pay off debt, or is there no legal way to do so?


Question posted courtesy of: Rodney

CoCoN asked:

I recently become eligible to join 401K through my work for the first time. With a recession possibly looming around the corner and the Market not performing very well right now, what should I do? Should I go ahead and join and take advantage of the lower prices and shares or should I wait it out until the Market starts to perform better? Just to note I have never been a part of a 401K plan before now. Any help would be appreciated. Thanks.


Question posted courtesy of: Chris

gallilea asked:

I have a target retirement fund for all my 401K money and it’s down right now. If I keep adding money does it buy more shares of it so when the price goes up I do even better?


Question posted courtesy of: Jackie

britknee69 asked:

I am young and planning to work in another company that, unlike my current employer, has no 401k profit sharing plan. I am just wondering if I could still benefit from my 401k plan once I left the company. Perhaps I will still be able to contribute to this plan from my pocket?


Question posted courtesy of: Samantha

crockettscove asked:

My 401K is currently in mutual funds and has dropped in value over the last 60 days. Having had negative experiences in the stock market in the past, I am thinking of moving to a more secure investment source. What would that source be?


Question posted courtesy of: Annette

RightLight asked:

I have some high interest credit that we can never seem to pay down. We have not added to the balance in over a year though and I am more than willing to cut them up. Should I borrow from my 401K and pay myself back at 8% interest to pay off the cards?


Question posted courtesy of: Clinton

wizeman asked:

In tax year 2006, Since I am over 50 years old, I contributed $5,000 to a traditional IRA because I wanted to reduce my taxable income. My 401k contributions brought my income just a little over $50,000 so I was able to reduce my income by most of $5,000. Is there a limiy as to how much I can have my employer deposit into my 401k account? My income will increase a little and want to be able to contribute more so that my 2007 taxes can be reduced by a $5,000 traditional IRA contribution.


Question posted courtesy of: Jared

axiomflash asked:

The limit for a Traditional 401k is $15,500/year, and the limit for a ROTH 401k is $4000/year. However, this year I put $3000 in my Traditional, and $1500 in my ROTH 401K, and Turbotax says I am over my legal limit. There seems to be a conflict in the tax code, so I must be misunderstanding something. Even my payroller and retirement account company are confused.


Question posted courtesy of: Charles