Answers in Retirement Plans

Your personal retirement plans will have to be your primary method of funding your retirement and you should consider all the tools at your disposal to plan for and achieve your retirement goals.
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Dean the best way to get your plan evaluated is to evaluate your fee disclosures brochure as well as your fund line up and their internal fee structure, just to name a few, you also want to look at Fiduciary standing. Is your financial advisor also acting ...(more)
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First, others are correct in that in a strictly financial sense you may be better off having a larger loan instead withdrawing from your Roth 401k. If the retirement money is managed correctly, it should be able to earn more interest than the after-tax ...(more)
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Those are good points from others. I would just add a comment here: If you and your wife have not owned a home for more than 2 years, then technically your next home purchase would qualify as "first time home buyer," according to the IRS's definition. ...(more)
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It depends... First of all, the Roth funds rolled from a 401(k) will be subject to a "new" 5 year restriction. So any earnings that you withdraw will be subject to taxes and penalties. Second, pre-tax would be subject to taxes and penalty (assuming you ...(more)
1 vote
Great question! Even thought you cancel your contributions, your not allowed to withdrawal the money from the 401(k) unless you meet IRS requirements like termination of employment. That's to make sure the money stays in the plan available for your ...(more)
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David J Haas Level 4
You need to ask this question to the Brightscope guys at info@brightscope.com. This forum is answered by independent advisors who do not work for Brightscope.
3 votes
Lorena, The Thrift Savings Plan (TSP) is a retirement savings plan for federal employees, including employees covered under the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS), and servicemembers. When you contribute ...(more)
1 vote
Ted Jenkin Level 17
I agree with the panel. It looks and acts very similar to a 401(k) plan, but designed for Government Employees. Unlike most 401(k)'s, the TSP is limited to five options (G,F,C,I, and S) so your overall choices from an investment perspective are limited. ...(more)
1 vote
Peter Cacioppo Level 13
You said "Thrift Savings Plan". There is such a plan with this name that is offered to only employees of the Federal government. It is very similar to a 401(k) and all its investment choices have low operating expenses and management fees. If you are ...(more)
2 votes
If you are talking about the US Government Thrift Savings Plan (TSP) they are essentially the same. Contributions are limited in both types of accounts to 17,500 per year with catch-up contributions of $5,500 for those age 50 and over. You generally ...(more)
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Herbie Glass Level 18
Yes they are very different with respect to a participant's tax treatment on their own "Elective Deposit" usually made through payroll withholding. For example, you are probably aware that a participant may elect to fund either type of plan through payroll ...(more)
4 votes
The short answer to this question is yes, the company can direct bonuses into a 401k. This is reasonably common. Depending upon the plan, and the type of plan (specifically, if the plan is a "Safe Harbor" plan) there can be some flexibility within contributions. Essentially, ...(more)
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Kevin, I agree with James that it depends on a variety of factors. First of all, if you're saying that your employer only awards cash bonuses to select people, then that in and of itself is not really a retirement plan issue. A company's compensation ...(more)
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It depends. They probably can't do as you say within the 401k. 401k money is either contributed by the employee from payroll deductions, or by the employer in matching funds. Bonuses can't just be directed into a 401k. However there are so called ...(more)
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David J Haas Level 4
A 401K is a very effective way to save money. So the questions are why are you cancelling it, how old are you, and do you need the money. If you are still with your company, you can stop your current contributions, but any withdrawals you take will be ...(more)
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