Flying J asked:

If I am planning to leave my job in the near future and I have 30k in my 401k and approx. 12k in loans, how will the loans be repaid? Do I pay the taxes at year end? Also what if I decided to cash out the rest?


Question posted courtesy of: Frederick

Concerned asked:

My husband has been out of work and we have separate 401k plans but need to take a lump sum from his plan to help with the bills or we won’t have a place to live.
1. How long does this process take?
2. We want to opt for the 10% and 20% tax and penalty to be taken out before the disbursement. Will we be taxed or penalized again on it when we file our taxes?


Question posted courtesy of: Reginald

RJ asked:

I know that the government has changed the distribution age several times in the past on 401k plans but I was told that the government could change the tax rate anytime and for any amount.


Question posted courtesy of: Jennifer

vincentC asked:

My situation: I joined the company 401k plan in the mid-December 2006. Which I thought will start from beginning of 2007. However, my company started draw the money immediately and I didn’t notice until I got my W2 form recently. The 401k deduction is only $769 for year 2006. I have already put money on my IRA account which I can put $5000 for 2006, I’m 50 years old. Based on the IRS rule, I could not contribute to IRA if I have 401k and have AGI more than $80000 in 2006 which I did. Is there any way that I can change the 401k contribution to non-deductible, so I can contribute to my IRA?


Question posted courtesy of: Oscar

Donkeyshane asked:

I’m already planning on opening an IRA at the maximum amount. So what do I do with my 401k if I’m leaving my job to go back to school and won’t be able to roll it over to another employers plan?


Question posted courtesy of: Peter

shanniebee asked:

I recently started an internship for a company that offered a 401k program so I decided to get a head start on retirement and invest. However, I am entering graduate school in the fall and will no longer be with the company. Do you have to rollover your funds immediately after you leave your employer or can you wait until you start a new job before you roll them over?


Question posted courtesy of: Suzanne

401K girl asked:

I am leaving a company and have $4,988.00 in my 401K and would like to cash it out.


Question posted courtesy of: Norma

ashok a asked:

In Box transactions of rolled over 401K plan with the broker on line and if such profits and loss a/c show overall loss,with some transactions profiting and some loosing,how that is taxed or will not be taxed if no money is withdrawn?


Question posted courtesy of: Monica

TheProfessor asked:

Where do contributions for either the deductible portion or the 401k Roth portion get reported? Is there a place on the schedule C or somewhere else?


Question posted courtesy of: Patricia

Peter W asked:

I have two questions about my employer retirement 401k contributions.
1. The maximum I can put in is $15,500 for 2007. But I started in mid year. Is it prorated from the time I started? Example: I started on July 1, is the contribution $15,500/2 = $7,750.
2. My employer matching is 2:1 up to a maximum of 6% of salary. Example: $50,000 annual salary, employer contribution is $3,000. For every dollar I put in, they will put in $0.50. Is the employer matching of $3,000 included in the $15,500 which means the employee total amount invested is $12,500, or, is it $15,500 from employee plus $3,000 from employer which would equal $18,500. I think it’s the former but just want to check.
Thanks….


Question posted courtesy of: James