I'm going thru economic hardship right now (no job, no income). I have some money saved up in 401k but I really don't feel like paying the 10% penalty.\n\nIf i roll over my 401k into Roth IRA (of course, I know that\n's a 30% tax event), then do a complete distribution from that, I can avoid the 10% penalty. Anyone know if I can get in trouble for doing this?
130990
You will have to pay dearly for pulling it out.
208957
I agree with Mr. Greedy.  You should roll it into an IRA and you'll have better control over it.  If you want to take money out it will be processed sooner and also you'll have more options to invest in.  You can even keep things invested the same when you roll it over.  There is no penalty as long as you don't withdraw any funds.
419877
I think I would try to hang tough and make it difficult for them, but I think you will probably have to pay.  In fact you are probably not the only person that was over-paid.  \n\nHowever, in your negotiations/discussions with them, make sure that they re-pay YOU for the 10% penalty and tax that will end up on you tax return for the year because of the pre-mature withdrawal of the funds to pay them back.
659018
Paula M is WRONG.\nYou can have all 3.  As VinTek said, your combined contributions in both Traditional and ROTH IRA cannot exceed $4000/tax year.  You can spread this $4000 across any number of accounts you want.\n\nROTH IRA is NOT NECESSARILY better than Traditional IRA as VinTek implied.  For tax purposes, if you want to bring down your AGI, and if you're eligible ( since you're married - filing seperately/Jointly...Your AGI etc. ), you may prefer Traditional IRA today instead of TAX FREE advantage of ROTH IRA down the line.\n\nIf you have patience, you might want to go thru' the link below:\nhttp://www.401khelpcenter.com/2006_limits.html\n\nAlso check out http://www.401khelpcenter.com/
78293
You should put in at least as much as you need to in order to receive your company's match.  If you put in less than, then you're walking away from "free" money.  Anything over that amount is a personal investment decision.  My old company had a terrible 401(k) program with few, and mostly bad, investment options.  I put in enough to get my company match, and then put more money into an IRA.  My current company has a great matching program, and terrific investment options, so I'm maxing out my contribution.  \n\nThe short answer is put away as much as you can.  The longer it sits in an investment that's growing, the more money you'll have at the end.
372511
Do I have to make a choice?  In a few other posts, I have pointed out the disadvantages of investing in mutual funds.  It is exceptionally rare that any mutual fund will outperform its benchmark over the longer term, especially after fees and taxes are factored in.  \nI'm going to assume that you're asking this question b/c you are only given Calamos funds as options in your 401K and that you have to pick one.  Without knowing your specific financial circumstances (which is critical to find the most appropriate fund) I will give you two Calamos recommendations.  I just checked out the prospectus online and it looks like the Global Growth and Income, and to a lesser extent, the Growth and Income fund, are pretty decent.  Both have consistently beat their benchmarks and the fees are amongst the lowest of all Calamos funds (although I'm still shocked at how high the Calamos fees are overall).  These funds should be good and would be most appropriate in a tax-deferred account like a Roth 401K where the taxation of the dividend income and capital appreciation will not eat away at returns.  Steer clear of the Growth fund.  These guys are making a huge bet in Tech and must not be historians of the market.  They should look at what happened to Janus funds in the late 90's and they might reconsider a 34% allocation to technology.\n\nThat's my $0.02.
135800
Pretty much any provider CAN offer them, it is just a question of whether or not they have decided to move ahead with the amementments.  Some have not since the proposed final distribution regulations were only recently released and the final amendment guidlines have NOT been released at all.  \n\nThe benefits of a Roth 401(k) could be great, but just a word of caution, make sure you are fully aware of the transportability restrictions and 5-year waiting period associated with the Roth portion of your savings.  Also, there is some question related to loans/hardships with Roth assets that could cause administrative issues.  Talk to your current provider.\n\nGood luck!
527546
Good Question. In 2006 you can contribute $15000 to your 401k regardless on employer match. If your over 50 years old you can contribute an addional $5000. All those contributions will lower your marginal tax rate. Therefore you could reduce your income in regard to ROTH IRA limits. You should check with your CPA first. If you are over the limit for Roth contribution you will get hit with penalties from the IRS. Another option is the ROTH 401K. Ask your employer if that is an option. You can put in $15000 per year with no income limit.  You can email me on this subject if you have more questions.
204187
I'm not a financial advisor, so you should check on this, but I believe that you will pay early withdrawal penalties plus income taxes at your current base rate on whatever you take out for whatever reason before you are 59 1/2.\n\nYou can take a loan against it, but you'll  have to pay that back.  I think you can also divide the entire value by how many years you likely have left to live (from actuarial tables) and take annual "substantially equal payments" without penalty.  All in all, very, very bad idea to use 401(k) money before you are at least 59 1/2.  \n\nCheck the Motley Fool for sound advice on paying off your loans.
104045
Options:\n\nRoll the money into your mortgage (get a larger loan).  The interest rate will be lower then a 401k loan, and it's deductable.\n\nWhen you take out of a 401k, there is no penalty.  But you now don't have that money available earning interest/dividens.  \n\nIt's never recommend taking out a loan on 401k.  But if that's the very last source of money, it's better then taking a withdrawal on it.
20486
It depends on several variables, including how close you are to 70 1/2, the date in which mandatory withdrawals begin. We chose to cease non-deductible contributions into our regular IRA's several years ago. The downside of continuing your contributions, which are after-tax, is that you may be co-mingling pre and post tax dollars in the same IRA. That means you must file a special form (IRS 8606?) with your taxes each year to tell the IRS how much in your IRA has already been taxed. It's tricky and I'm not sure if it's worth it. If you are young enough and your AGI is low enough, you may be able to convert (and pay tax) on the IRA and put it into a Roth IRA.
589536
All the brokerages you listed are expensive ( relatively ) in their commissions, especially if you're going to be trading stocks, often, instead of just buying funds and leave them for a while.\n\nIf this be the case, you will be better off, exploring other deep-discount brokerages...such as E*Trade, TD Ameritrade etc.\n\nIf you have sufficiant funds in your Rollover IRA ( > $50K for E*Trade ) the commission per trade is lot less than what you will pay in your list of brokerages.  I think it's $9.99 or something along that line, with almost all brokerages, per trade.\n\nThe commission is something that you should consider. Also, some of these companies charges few cents per share. Only the first 1000 shares are covered by their flat fee. Anything above that limit, you pay additional CENTS per share.\n\nAll the tools - charts, portfolio manager, research tools etc...are all kinda standard all over the place.\n\np.s.\nSince you're rolling over and NOT THRU' YOUR COMPANY 401(k) anymore...There is no more free lunch. You will pay $$$ per trade..So, give it some thought
587380
Forget about everything else you've read here.  As long as you have a debt in collections, you concentrate on that first.  Then you concentrate on your credit card debt.  Every dollar you put toward that debt yields you a tax-free 24.99% gain instantly.  You can't beat that.\n\nThen you need to put together an emergency fund.  You can save all you want, but if you're one emergency away from ruin, that's not a good thing.\n\nNow, if you work for a company with a 401(k) plan with matching funds, put money into that up to the maximum match.  Free money is good.  If your company doesn't offer a match, then you can think about the IRA (Roth IRA is preferable if you qualify).\n\nWhile you're paying down you're debt and putting together your emergency fund, get yourself a basic education about investing.  As you can see, your first 3 answers all disagreed with each other.  How will you know who is right?  And how can any of them tell you what you need to do if they don't even bother to ask about your circumstances?  Buy a book about investing, so at least you'll know if their advice (or even a financial advisor's advice) makes sense for you.\n\nPersonally, I recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias.  It might not actually be the only guide you'll ever need, but it will give you enough of a foundation to determine if you need to learn more.  Good luck to you.
204258
try to deffer the payments as much as possible so that if this ends up being you only source of income then you will end up paying less taxes i don't think that it will be tax free. unless it is a roth IRA where you paid taxes upfront to later have tax free money when you get the money.
593575
Yes, you may contribute to your company's 401(k) and max our your Roth IRA.  \n\nYour contribution limits to the 401(k) are $15,000 in 2006.  If you are over the age of 50, you may contribute an ADDITIONAL $5,000 to your 401(k) plan.\n\nYour contribution limits to the Roth IRA are $4,000 in 2006.  If you are over the age of 50, you may contribute an ADDITIONAL $1,000 to your Roth IRA.\n\nJust a reminder, almost all retirement contributions are subject to overarching limits set forth in IRS code Section 415. Please speak with a qualified tax advisor for more information before maxing out your 401(k) and Roth IRA.
168326
If you take from your traditional you pay tax on it.  If you take from your Roth you do not.  This is why you would want your CPA to review your tax situation.  Maybe they will suggest a combination depending on your tax bracket and how close you are to the bracket.
26042
good question.  401k's are excellent vehicles for preparing for retirement.  The greatest part about them is that usually your company gives you free money when you participate, called a match.  The way it usually works is that you decide how much, either dollars or a percentage of your income, you want to put in to the plan.  Then you decide which investments to pick (this can be tricky without knowing what they offer).  Ask the person offering the plan to help. Use a mix.\n\nWhatever you put into the plan is deducted from your income.  Heres an example:\n\nYour income:               $40,000\nContribution amt:   5%:    $2000 \nCompany match 50c per $:   $1000 \nup to 5%                    \n\nTotal contribution:        $3000\n\n(New taxable income:$38,000)\n\nIf you do this until normal retirement age of 60 and get a 10% return on your money over that time, you'll end up with almost $1,200,000.  \n\nSince now youre only taxed on $38,000, when you decide to retire and get your money you have to pay taxes on all the money you take out (not the whole $1.2 million unless you take it all at once).  If you take it out before your 59 1/2 you will have to pay an additional 10% penalty on whatever you take out. There are exceptions.\n\nThese are pretty much the pros and cons, but if you start now and stay consistent you'll be able to retire very comfortably.