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17,500 & 5,500 are the deductible amounts that may be contributed for '14...contributions greater than that are post 86 after-tax contributions. Deductible limits are raised every so often. Check your plan...and, of course while checking your plan, check out other options outside your 401(k)...
If rolling past employer 401(k) amounts - safest option? Trustee to trustee rollover. Avoid touching any check and subjecting yourself to completing the transaction within 60 days. Hefty penalties are easily avoided using trustee to trustee.
Depending on when you do this/that TR ROSE,...??
You can "roll" your 401K out into what's called a "Rollover IRA"..THERE ARE NO PENALTIES.
And most providers or trading houses take care of all paperwork or transfers for "FREE" or almost free...(yes I see, someone already mentioned trustee to trustee) That is correct.
That's usually after you retire or leave a company or move on to another Company..
DO NOT TRANSFER to another 401K in new company...Get it out.
There may be other stipulations and timeframes (dates) that you have to meet...
But try to do all of it, without paying taxes or penalties...Get GOOD ADVICE on the pitfalls.
Check all the rules of your Company or your 401 for vested rights, withdrawls etc.
I think if you retire in the same year, you turn 55, you might be able to pull 401K out without penalties...OTHERWISE you have to wait until age 59 1/2.
Whatever you do try not to give back any matchings, pay taxes, or penalties OR do anything RASH....Check all RULES first....You earned it, work on KEEPING it...Get ADVICE or read.
If someone does not save for their retirement, they are jealous of those who do. The criticism of 401Ks sounds like sour grapes. $50 dollars a week saved before taxes is equivalent of less than $5 a day of spending. The secret is in deciding what belongs on the need list and what belongs on the want list. You need food, clothing and shelter, but what you eat, what wear and where you sleep are choices!
Watchout for fees. Even a 1% annual fee over a 40yr period will eat almost 20% of your 401k. To get the exact number:
1) Multiply your annual fee be 16.64
2) Multiply answer from (1) to your final/projected amount
3) That is how much you paid in fees that should have been your money
1) 2% fees X 16.64 = 33.28
2) $500k final amount X 33.28% = $166,400
3) You paid or will pay over $166k in fees over a 40 yr period on an account that finishes at $500k
Wow. All those words being typed, and not a thimble of intelligence to show for it. It's like a vacuum in there, with no input or output. Just a bunch of no-brainers, patting each other on the back. Garbage in - garbage out. It's depressing. Come on, people. You're better than that.
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A Fidelity study found that adult kids and their folks aren't on the same page when it comes to discussing finances.
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