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Peter C. Karp

Helping individuals, families & business owners to reach their financial and investment goals

Karp Capital Management Corporation

Sausalito

CA

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Overview

Services

Advisor Services

  • Insurance
    • -Annuities
  • Pension Consulting
    • -401k
    • -403b
    • -Defined Benefit
    • -Other Pension Consulting
  • Portfolio Management
    • -Individuals and/or Small Businesses
    • -Businesses or Institutional Clients
  • Other
    • -Publication of Periodicals or Newsletters

Funds

Funds Used With Clients

There are no funds listed for this advisor at this time.

Firm Client types

Qualifications

Experience

No timeline events available.
Employer Years Dates
Infinity Financial Services 2 years, 12 months Aug 2014 - Present
Mutual Securities, Inc. 1 month Aug 2014 - Aug 2014
Financial Telesis 10 years, 2 months Jun 2004 - Aug 2014
Karp Capital Management Corporation 13 years, 2 months May 2004 - Present
Peter C. Karp 30 years, 1 month Jul 1987 - Present

Designations & Memberships

  • American Association of Individual Investors
    Membership
    American Association of Individual Investors
    The American Association of Individual Investors is a nonprofit organization with about 150,000 members whose purpose is to educate individual investors regarding stock market portolios, financial planning, and retirement accounts.
  • American Society of Pension Professionals & Actuaries
    Membership
    American Society of Pension Professionals & Actuaries
    The American Society of Pension Professionals & Actuaries is the premier educator and policy advocate for over 7,500 career professionals actively engaged in the retirement plan industry.
  • Financial Planning Association
    Membership
    Financial Planning Association
    The Financial Planning Association (FPA®) is the largest membership organization for personal financial planning experts in the U.S. and includes professionals from all backgrounds and business models. We help connect thousands of consumers to competent and ethical planners who uphold the FPA Standard of Care.

Articles and Answers

Answers

Ask a financial questionAsk a question
I am 63 and have retired and transferred my retirement plan to a broker, a regular rollover IRA. I assume, I can withdraw some of my money as I need without penalty and of course pay the necessary taxes. However,?
William,The short answer is yes. You have to be careful taking monies out of your IRRA or you will trigger income taxes. The way it works is this: You take the money out of your traditional or Roth IRA and then replace the cash (the same amount that you withdrew) within 60 days. If you do these th...  (more)
Answered May 2013
My mother is now approaching social security age and I would like to help her estimate her monthly payout. True or false, the social security payout is based on an average of your top twenty earning years?
Jean,Short answer = false.Social Security is based off of your top 35 earning years. If you don't have 35 years of earnings then zeros count. You can improve your social security payout by continuing to work and adding higher income earnings to your track record. The answer is that social securi...  (more)
Answered Nov 2012
A controversial idea to overhaul the tax treatment of 401(k)s from the Brookings Institution has been reincarnated after failing in Senate committee hearings last year. The specific provision would make 401(k) contributions no longer excluded from taxable income, though the government would provi
Michael,No, I do not see this proposal gaining any traction as there is a savings crisis in this country. Social Security is strained given the number of baby boomers retiring. The government does not have the money to provide matching contributions to participant accounts as they have other prio...  (more)
Answered Dec 2012
What benefits does a plan administrator get?
William,The other advisors provided some good answers to your questions. Just to reiterate, the sponsor of a 401(k) plan is typically the employer and they benefit by providing their employees with an opportunity to save for retirement and reduce taxes. The sponsor/employer also receives tax advan...  (more)
Answered Dec 2013
If my employer files for bankruptcy will my 401k fund be frozen for any amount of time?
De,Here is a link to the Dept of Labor’s website answering this question….. Fact Sheet: Your Employer's Bankruptcy - How Will It Affect Your Employee Benefits? http://www.dol.gov/ebsa/newsroom/fsbankruptcy.htmlThis is the section on retirement plansRetirement Plans Workers in bankruptcy situati...  (more)
Answered Nov 2012
I would like to know if I could cash out my 401k?
Heather,If you are still employed by the company that sponsors your 401k plan then you will not be eligible to cash out of the plan. Instead, you can see if your plan offers a loan provision, hardship withdrawal or in service withdrawals. Not all plans offer these features so you will need to chec...  (more)
Answered Dec 2012
How do ineligible family members (due to very part-time hours) get treated in a 401(k) Safe Harbor Plan?
Mary,The important word in your question is ineligible. Ineligible family members are treated just like any other ineligible employee in a 401(k) safe harbor plan, they do not get a safe harbor allocation nor are they allowed to participate. You need to look at your plan document to identify eligib...  (more)
Answered Mar 2014
I have a plan with three owners and one other HCE. If I use my top paid group (20% of the employees), I would only need two people. When I rank based on comp, it is owner1, owner2, HCE, owner3. Who should be in the top paid group for testing purposes?
Sharon,Given the ERISA regulations associated with maintaining a qualified retirement plan, I highly recommend that you have a qualified QPA from a third party administration firm performing the testing for you or at the very least advising you on the classification of the employees for testing pur...  (more)
Answered Feb 2013
How do I pull out my 401K. I am no longer with company that offers retirement & it Has just been setting out there for a couple years & I would like to withdraw it?
Deborah,Call your plan administrator or the company that handles the plan.The number is on your retirement plan statement.The posted information is for informational purposes only. This message does not constitute an offer to sell or a solicitation of an offer to buy any security. All opinions and...  (more)
Answered Dec 2012
Trade off between risk and return?
Mohammad, In the past, there was a sense of sanity governing global financial markets. Now, each morning brings apprehension about the direction of the markets. If people tend to follow the masses, they soon find that market trends not only influence their moods but their account balances as well. ...  (more)
Answered Dec 2012
I have about $20,000 after tax $ in my 401k. I have about $10000 I am paying on a PLUS Loan at about 7%. Can I withdraw the $10000 from my 401 K to save paying the higher interest rate on my Parent Loans? Would my 401k have a penalty or growth suspension?
C,Could you please clarify your first sentence, do you have a Roth 401k? 401k contributions are pretax deferrals unless it is a Roth 401(k).You can not take money out of the 401k unless you are at retirement age as per your plan document. If you have a loan feature in your 401(k) plan you could t...  (more)
Answered Nov 2012
What is the balance in my 401(k)?
Marvin, The purpose of your 401k retirement plan is to provide for your golden years. There are times, however, when you need cash and there are no viable options other than to tap your nest egg. For this reason, the government allows plan administrators (employers) to offer loans to participants in...  (more)
Answered Dec 2012
Where do i go to get a 1099r form?
Edward,If you are just looking for the 1099-R form you can find it and the instructions for completing the form on the following IRS website: http://www.irs.gov/ and search for 1099-R form. A Form 1099-R is filed when there is a distribution from pension, retirement or Profit-Sharing plans, annuit...  (more)
Answered Jan 2013
When does doing an in-service?
Kevin,First things first, you HAVE to be 59 ½ for an in-service withdrawal from your 401(k) plan. No matter how much you dislike your current plan and you want to withdrawal it all, it’s not an option until then. Do not be driven just by fees. You may be able to find funds with lower expense ratio...  (more)
Answered Dec 2012
If i transfer an existing bank roth ira cd worth $4500 to fidelity, can i still invest $6500 for 2013?
Joe,Transferring your ROTH IRA account from one institution to another is not considered a contribution, therefore you would still be eligible to make your IRA contribution of $6500 for 2013 as long as you are 50 years older or older. If you are younger than 50 you can only contribute $5,500. The...  (more)
Answered Feb 2014
I've had bad luck with a financial advisor - I paid $600 and got a folder of charts depicting my financial situation and a sales pitch for a roster of insurance products. How can I ensure that my next advisor is worth his/her commission?
Bronwyn,Here are some of the questions you should always ask when hiring any financial professional:-What experience do you have, especially with people in my circumstances?-Where did you go to school? What is your recent employment history?-What licenses do you hold? Are you registered with the...  (more)
Answered Aug 2013
Mother, recently deceased. What happens to her retirement benefits?
Deborah,I am sorry for your loss. There are a lot of complexities associated with the finances of an individual when they pass away and it is difficult to provide specific direction without more information. One of the first steps you should take is to review your mother’s will and trust documents ...  (more)
Answered Nov 2013
I have a 401k from my previous company which is still being managed by them. I am not sure if I should rollover my 401k to my new company and get someone else to manage it. Can you please provide me with some options I can explore.?
Sunderram,If you’re like most people, you might have left your monies with your previous employer because it was the path of least resistance. Another reason is you might not have been sure where to transfer them and the daunting task of managing your nest egg. The whole point of these plans is to ...  (more)
Answered Jan 2013
My wife's employer has two retirement plan choices; 401k & Roth 401k. Which is better & more tax efficient? Thanks!!
Brian,Both retirement plans have their pros and cons, which leaves consumers to answer just one question: Should they convert their 401(k) to a Roth or stick it out with a traditional 401(k)?Taxes …….Here's the main "perk" that a Roth has going for it: Workers pay today's tax rate on their contrib...  (more)
Answered Jan 2014
I have a roll over IRA from my employer.
Stephen,I assume you have received a distribution from your former employer and that you put that money in an IRA rollover account. Given contributions to an employer sponsored plan are generally pre-tax contributions and contributions you make as an individual to an IRA account are after-tax, yo...  (more)
Answered Mar 2014
Hi, I'm wondering if I can contribute the $5,000 a year to a an existing rollover IRA that was previously funded?
Kevin,The other advisors have provided a lot of good information. All pre-tax IRA money, traditional and rollover, can be held in one account. IRA contributions can continue to be made to that account. However, what could prove to be problematic would be in the event that the you wanted to rollove...  (more)
Answered Jul 2014
I will be 32 years old this year. Starting my first full time job and would like to plan for retirement.
Amani,First of all congratulations on thinking about your future and planning for retirement at an early age. I agree with the other advisors in that you should consult with a fee-only financial advisor that can help you create a roadmap to achieve your financial goals, including a college savings ...  (more)
Answered Aug 2014
My husband is covered by a DB plan but I am not-can I contribute to an IRA in my name? Our combined income is 150000.
Danette,John and Larry have both responded as I would. You can always make a non-deductible traditional IRA contribution regardless of income. Since you have indicated that you are not covered by a retirement plan at work and if you file your taxes jointly, your IRA contribution would be fully ded...  (more)
Answered Feb 2014
Is there a way to search 401-k plans by things like state, number of participants and performance?
Michael,The answer to your question depends on whether you are just an individual looking for information or if you are a financial professional. 401(k) tax filings referred to as Form 5500 are available to the general public at www.efast.dol.gov however you will need to know the name of the plan o...  (more)
Answered Jan 2014
How do I take a Loan on my 401k?
Joe,In regards to getting a loan from your 401(k) plan, we always recommend that you explore other options first as it can be very difficult to make up lost earnings from your 401(k). There are fees associated with obtaining a loan and it could impact your retirement income. If you must get a loan...  (more)
Answered Mar 2014
Deferred Variable Annuities?
Colin,As you are maximizing your ROTH contributions, an annuity is a great way to set aside the most for retirement. With an annuity, you can put away after-tax dollars to grow tax-deferred and supplement your IRA retirement savings. Annuities typically have lockup periods, but seeing as how you ar...  (more)
Answered Jul 2014
How can I protect myself from frauds?
Lacy,Investment/Securities Fraud covers a wide range of illegal activities, all of which involve the deception of investors or the manipulation of financial markets. Investment Fraud also covers a wide range of illegal activities, all of which involve the deception of investors or the manipulation ...  (more)
Answered Aug 2013
How long does it take me to receive my pension after leaving my job?
Brian,The timing of the payout after you leave the company depends on the plan document. Check with your company's HR department or plan administrator for specifics on your plan and distribution options.Your employer has discretion to determine when and how much the company pays into the plan. The...  (more)
Answered Oct 2013
I need advise to productively invest 20,000!
Lazaro,In order to best answer your question is to suggest you sit down with an advisor that can evaluate your entire financial picture and then make recommendations on the best use of your $20,000. A others have mentioned it may be prudent to reduce debt before beginning a savings plan. There are ...  (more)
Answered Aug 2013
401k plans, what is the maximum you can contribute in 2013, I am 59 years old.
Kevin,For 2013 the maximum contribution allowed into a 401(k) account is $17,500. Since you are over 50 years old, you can also do a catch contribution of $5,500 making the total $23,000. Congratulations on considering maximizing your 401(k) contributions. As a side note, you can also contribute to...  (more)
Answered Aug 2013
How do i enroll in the 401 plan?
Hi Tina,As the other advisors have mentioned, you should indeed begin by contacting your company’s HR department to determine if you are eligible to participate in the plan as well as the plan specifics. Some employers, for example, offer “matching” contributions and will match a percentage of your...  (more)
Answered May 2014
Is it recommended to leave one's 401(k) with employer upon retirement or roll over to an IRA account?
Hi Ivory,I suggest you check with your employer regarding their rules and administrative fees associated with maintaining plan assets.Depending on the specific plan, your 401(k) may include money management services and/or special investment options that cannot be rolled over into an IRA.You shou...  (more)
Answered Jan 2014
How will my divorce impact my pension?
Frederick,There are many factors involved when it comes to divorce and the impact on retirement benefits. A pension earned during marriage is generally considered to be a joint asset of both husband and wife. However, it is up to state divorce courts to decide whether and how pension assets are di...  (more)
Answered Jul 2013
IRA Contribution with maxed out income - what can i or my wife contribute into a IRA?
Hi Darren,Please note that Karp Capital Management does not provide tax advice, and we strongly recommend that you consult with your CPA to regarding any tax questions.Given your income and joint tax filing status, neither of you will be eligible to fund ROTH IRA accounts, as the income limit is $...  (more)
Answered Nov 2013
I want to know can my spouse get my 401k if i get a divorce?
DebraThe QDRO (Qualified Domestic Relations Order) is what dictates the distribution of assets in a divorce settlement and is obtained from the court.This is a delicate question to answer as it is determined by the law not the plan administrator, though the plan administrator may have language to ...  (more)
Answered Jan 2015
I left my job with money in a Roth 401k, can I roll it to a Roth IRA? I only had the Roth 401k for 3 years."?
Peter,Since we know very little about the rest of your financial history or needs I am going to provide some general answers to questions.First of all, start your clock…..There are two 5 year clocks. One is in the IRA world. The other is in the 401(k) world.If you already have a Roth IRA, your cl...  (more)
Answered Dec 2014
Age to take cash balance withouth penality?
Chris,Since I am not sure if you are referring to taking cash from your 401(k) or a Cash Balance Retirement Plan (a Defined Benefit Plan) I will give you the basics rules. Whether or not you are still employed at the company is a factor too. As for taking a distribution from either type of plan, ...  (more)
Answered Jun 2014
Rolling over my 401k into a rollover IRA then withdrawing funds?
Dan,You should be able to payoff your outstanding loan in your 401(k) account with your current employer by writing a check for the outstanding balance and interest. You will need to check with your HR department to find out what specific forms you will need and also to determine the payoff amount....  (more)
Answered May 2013
Is it worth combining my 401k's when they both seem to be doing about the same? Additional investments on top of 401k?
Brett,First of all congratulations on getting started early investing for your retirement. I believe it is important for everyone to seek guidance from an experienced financial advisor in order to make sure your investments are properly positioned to meet your goals given the ever changing economi...  (more)
Answered Jun 2014
Cash out my inactive 401k-?
AntonioSince you are still an active employee with the main company you should check with the HR Department and find out if you can continue to contribute to the 401(k) plan. It really depends on the plan document and how the various divisions are participating in the plan. If it turns out they ar...  (more)
Answered Jan 2015
Safe Harbor 401k and Highly Compensated Employees?
JimAs all of the other advisors have stated, a highly compensated employee (HCE) as defined by the IRS is an individual who:1) Owned more than 5% of the interest in the business at any time during the year or the preceding year, regardless of how much compensation that person earned or received, ...  (more)
Answered Jan 2015
How much do i have in my 401k plan.?
You should be receiving periodic statements from the investment provider of your 401(k) plan. Contact your current employer’s HR department and they should be able to provide you with information about your account. If you are looking for the 401(k) account balance from a former employer, you will n...  (more)
Answered Dec 2012
I participated in a 401(k) through my employer, a law firm. The law firm dissolved 5/31/10, but I neglected to move my 401(k) funds. I recently contacted the group from whom I had received statements about my account to recover and transfer my funds. They have no record of my old law firm's plan.
Constance,I am surprised that the group from whom you have received statements has no record of your old law firm’s account. Are the statements from your 401(k) account or are they from a custodian that may have received your funds as an IRA rollover set up on your behalf by your old employer when...  (more)
Answered Apr 2013
Accessing our Pension after leaving company and turning 55?
SadieIn order to find out the specific guidelines for receiving a distribution from your husband’s pension plan you need to request a copy of the Summary Plan Description (SPD). This document outlines all of the provisions the employer has put into place for the plan. Access to funds are not only ...  (more)
Answered Jul 2014
I want to convert traditional 401k contributions to Roth 401. Is it based on the value or contribution amount?
Colin,You have indicated that you want to convert your traditional 401(k) contributions to Roth 401(k) and want to know how the value is determined. First of all, you need to review your Summary Plan Description or contact the HR Department of your former employer to find out if your plan allows f...  (more)
Answered Jan 2014
I turn 50 on 2/1/15. Can I make the $6k catch up contribution in 2015 or do I have to wait until 2016. Thanks.
JosieYou can begin making the catch-up contribution as soon as you are 50 years or older in 2015. Keep in mind that the catch-up contributions are also made through salary deferral. Also be sure that your company plan allows for catch-up contributions. The contributions limits in 2015 are $18,000 p...  (more)
Answered Nov 2014
Contributing to two 401k plans?
Kyle,First of all, if you are under 50 years old the most you can contribute cumulatively to a 401(k) plan is $17,500 for 2014 even if you have several jobs that offer you a 401(k). If you are over 50, you can contribute and additional $5,500. It is not just about getting a match but getting the ...  (more)
Answered Sep 2014
I would like to compare our firm's 401(k) plan (ABA REtirment Funds Program) performance against other plans, but I don't see that plan on your list. How would I otherwise go about getting a comparison? Can you give me a relative rating of our plan?
Kathleen,In order to compare your firm’s ABA’s Retirement program 401(k) plan performance against other plans, you should contact your plan’s investment advisor and request that they benchmark your plan against other investment provider platforms or send out requests for proposals (RFP). It would ...  (more)
Answered Mar 2013
I have a DB plan that pays me approx 2800 per mth. If I dont need, could I rollover the mthly benefits into a Roth IRA?
Hello Joe,Larry brought up some good points in his response. It would be helpful to know if you are currently receiving your monthly pension benefits which means you have already made your distribution election or if you are just trying to plan for the future. If you are currently receiving payment...  (more)
Answered Apr 2014
I am a business owner and would like to open a 401(k). Is there a date or deadline during the year that I cannot open a new 401(k)?
Will,Congratulations on making the decision to establish a 401(k) plan for your company and its employees. In addition to savings for yourself and your employees you may also be eligible to claim tax credits for some of the costs to set up the plan. These credits can typically be used to offset u...  (more)
Answered May 2013
Major differences between Growth Vs. Value Investing?
Growth and value are two ways to classify investments, and both have benefits and risks.Generally speaking, the growth investment style seeks companies that are growing and whose earnings are expected to grow faster than the market. The value style focuses on stocks that are believed to be underva...  (more)
Answered Dec 2013
Is there a limit as to how many IRA's one can have?
Hi Stephen,I agree with the previous responses in that you can indeed have multiple IRA accounts.While it is often advisable to consolidate your IRA accounts for ease of operation, keep in mind that different types of IRA accounts (ROTH, SEP, etc.) provide different benefits and depending on your ...  (more)
Answered Apr 2014
My husband and I are about to make the leap from being students to having salaries for the first time. Would a financial adviser be able to help us transition from living paycheck-to-paycheck to starting to think about the future?
Jera,Congratulations to you and your husband on your accomplishments. My advice is simple. Start saving now. Put together a budget and live within your means. If you employer provides a 401(k) plan start contributing right away on a pre-tax basis through salary deferrals. For 2013 you can contribu...  (more)
Answered Apr 2013
Is it worth it to hire a financial advisor?
Carny,Most people can benefit from professional guidance when they venture into the complex and confusing world of managing their financial affairs. A financial advisor will be able to assess your risk tolerance, analyze your resources and current asset allocation, take into account your tax liabil...  (more)
Answered Apr 2013
I want to know if I should consolidate my three 401k plans.
Hi Marisol,The best strategy for old 401(k)s is not necessarily the same for everyone and there are many considerations to take into account.Generally speaking, IRAs offer a much broader range of investment options while 401(k) plans may include money management services or institutionally-priced ...  (more)
Answered Jan 2014
How do i start a claim for my pension plan?
Elizabeth,As the other advisor mentioned, Social Security benefits are different than pension benefits you may be entitled to from your previous employer. The first step is to determine your eligibility by contacting a local Social Security office or starting your application online. Next you shou...  (more)
Answered Feb 2014
I just got a settlement of $200k from a auto accident. I'm only 52 going on 53. What or where should I invest my money?
VickiWithout knowing your entire financial situation it is very difficult to recommend any specific investments. I recommend sitting down with a fee based investment advisor to assess your financial assets and liabilities and put a budget in place. Each investment strategy that generates income com...  (more)
Answered Dec 2014
Should I continue contributing to my 401k plan that receives no match from my employer?
Andrew,First of all let me congratulate you and your wife on setting up IRA accounts. Since I do not know your entire financial situation I can only comment in generalities on your question about the company retirement plan. The 60/40 asset allocation in your pooled account is a fairly standard all...  (more)
Answered Mar 2014
No longer with company, how do I withdraw funds?
John,First of all, you should review your summary plan description (SPD) to find out what options are available to you from your prior employer regarding distributions from your 401(k) plan. You should also determine if there are any employer matching contributions, profit sharing contributions or ...  (more)
Answered Feb 2013
Need help to analyze my financial portfolio?
NarenMost people can benefit from professional guidance when they venture into the complex and confusing world of managing their financial affairs. A financial advisor will be able to assess your risk tolerance, analyze your resources and current asset allocation, take into account your tax liabili...  (more)
Answered Jan 2015
Can I "cash out" my ESOP stock at any time? I am 45 years old.?
Robert,Although each ESOP may have their own rules, in general, once you are no longer working at the company, the plan can allow you to take a distribution either as stock or in cash. Contact your former employer and ask them to walk you though the process. If the former employer is not a publicly...  (more)
Answered Dec 2012
How do I find my 401k from ATA?
Melinda,I assume that ATA is your current or former employer. That being said, you will need to contact the HR department of ATA or call the number on your most recent statement to find out the status of your 401(k) account. If this is from a former employer, depending upon the length of time since...  (more)
Answered Sep 2013
How do i get a loan from my 401k?
WalterYou will need to contact your HR Dept. to find out if your plan allows for loans and the details will be in your Summary Plan Description document. If a loan is allowed it is usually for a minimum amount of $1,000. The maximum loan amount allowed is the lesser of 50% of your vested balance o...  (more)
Answered Dec 2014
I just watched Frontline's most recent documentary on the follies of actively managed accounts. Should I put most/all of my retirement savings into passively managed funds? What about all the hidden fees that are not reported in actively managed funds?
Robert,Regulations like 408(b)(2) and 404(a)(5) have made fees more transparent and easier for plan sponsors and participants to understand. Fee regulations have helped everybody fulfill that fiduciary role. Fee information is important to know and understand, but it shouldn’t be a key driver in th...  (more)
Answered May 2013
I recently got married, is it a good idea for my wife and I to write wills now?
Carter,It is never too soon to plan for the future. Wills are not just for the rich. Regardless of how much or how little money you have, a will ensures that whatever personal belongings and assets you do have will go to family or beneficiaries you designate. Without a will, the court makes these d...  (more)
Answered Aug 2013
Education -529 - good or bad?
SSK,There are a few things in life that are certain....death, taxes and the increasing cost for college. Footing college bills these days often takes every bit of financial wizardry. With that in mind, there may be no better place to start than by opening and contributing to a 529 college savings ...  (more)
Answered Jun 2013
My question regards being designated a highly compensated employee. For 2013 I have been designated as such which limits my 401k contributions regardless of source; i.e. pre-tax/post tax/Roth etc. My dilemma is this..for 2013, the limits of being HCE will not let me contribute the $17.5k maximum t
Joe,You can contribute to an IRA and so can your wife. The deductibility of the contribution depends on your adjusted gross income. The big question is the plan design and the current advisory consulting for your 401(k) plan at work. You need to find an experienced advisor to look over the plan and...  (more)
Answered Mar 2013
How much money can i borrow the first time?
AmyFirst of all, I always recommend that taking a loan from your 401(k) plan should be only as a last resort. This is money for your retirement and grows over time, tax deferred at a compounded rate and is funded through pre-tax dollars. You need to contact your HR Dept. to make sure your plan allo...  (more)
Answered Oct 2014
I want to know the status of my pesion plan. Plan number 16-0999333-001. I would like to know any information you can provide. David Gelabert?
David,In order to find out the status of your pension plan you should call the number on your retirement plan statement and request information If you do not have a statement, call the HR department at your current or previous employer, depending upon where your plan was established and ask them f...  (more)
Answered Mar 2013
Would I leave my 401k with the company plan?
Susan, If you are leaving the company and you keep your 401(k) account in the current plan you may be limiting your retirement plan options and investment allocation flexibility such as types of investments you have access to like individual stocks, bonds, ETFs, etc. When a company sponsors a quali...  (more)
Answered Apr 2013
I received a gift of $10,000. Should I open a new Roth IRA, or increase my contribution to my employer's Roth 401 K ?
Hi Dwight, First you must be sure that you qualify for a Roth IRA which has a net income limitation of $173k. If your net income is above this point, you will be unable to contribute with tax-exempt earnings (this depends on filing status). Roth IRAs have an often overlooked benefit and that is th...  (more)
Answered Dec 2014
New rules for taking after-tax money out of your 401(k)?
CThe new rules for taking after-tax money out of your 401(k) may be taxpayer-friendly but it is a complicated process. You need to sit down with an experienced advisor in your area to discuss your entire financial situation and determine the best options for you and your husband to reach your fina...  (more)
Answered Dec 2014
I need to know what I will need to do to start collecting my retirement from Navistar when I turn 65 years old; I'm currently 63.?
Michael,Since you are not accessing the money until age 65, you need to take an inventory of where you are today given your current assets versus your spending habits. Request a statement of all benefits, pension and 401k from Navistar. Their contact information should be available on the document ...  (more)
Answered Feb 2013
I need to withdraw money from my 401(k) account as soon as possible. Please let me know how to do this.?
Marvin, The purpose of your 401k retirement plan is to provide for your golden years. There are times, however, when you need cash and there are no viable options other than to tap your nest egg. For this reason, the government allows plan administrators (employers) to offer loans to participants i...  (more)
Answered Dec 2012
Can I leave my 401(k) while still employed and under 60?
Jonathan,While you are still employed you have basically two options for obtaining money from your 401(k) plan. Either a hardship withdrawal (if plan permits) or a loan (if plan permits). Since you indicated that a hardship withdrawal was not feasible, you might look into getting a loan from your...  (more)
Answered Aug 2013
Can I take a loan against my 401k??
Hi Janet,Your 401k plan may permit participants to take loans, however this feature is not universally offered.Accordingly, I suggest that you check with your HR department and/or review your Summary Plan Description to determine if your plan offers loans. If your plan does allow for loans you can...  (more)
Answered May 2014
What are some common mistakes that people make around the time of retirement?
Shannon,The two most common mistakes I see are being too aggressive in taking money from retirement accounts and not knowing how to take distributions in light of return assumptions. The accumulation phase before retirement requires a different set of money management skills compared to taking dis...  (more)
Answered Feb 2013
Professionals with which financial services designations (e.g., CFP) are the best to seek out at the time of retirement?
Shannon,CFP, CEBS, CRPC, CRPS, QPA are just letters which designate classes and tests that were passed. Certifications are important but recommendations and retirement planning experience are paramount. The more experience a financial professional has regarding retirement planning and asset manag...  (more)
Answered Feb 2013
When interviewing a financial advisor, what questions should I ask?
Shaloha,When it comes to our money, we can’t control the markets but we can control who and how they manage our money — as they say, past performance is not an indicator of future results. For that reason, you’ll want to search and vet all candidates carefully. Here’s how to find an advisor who is ...  (more)
Answered Aug 2013
How do i see my retirement and change some things?
Kevin,In order to answer your question on how to see my retirement and change some things, you need to first tell us what kind of retirement account you have. Is it a 401(k), IRA, Pension Plan, etc. If it is a company plan I would suggest you contact your HR department and they can provide you wit...  (more)
Answered Jul 2013
Can the money be rolled over to an IRA that I can start contributing to?
Kim,Generally you want to keep pretax dollars (those in your 401(k)) separate from after tax IRA contributions. For accounting purposes it can be tricky to segregate the assets in an IRA if there are pretax- retirement plan contributions and after tax IRA contributions. Individual Retirement Rollo...  (more)
Answered Jan 2013
What's the best way to recover from identity theft?
Seth,I’m sorry you have been subjected to identity theft. It is an arduous task to recover from this type of violation and will no doubt damage your credit score. If you have a long term relationship with your bank contact them first to see how they can assist you in getting a loan to replace your ...  (more)
Answered Jul 2013
I have small business with myself the only employer , I would like to open 401k account but I want to find the rating for the plan and know the administrative cost /hidden cost that I will be paying for, is there website or book that can help choose?
Arshad, There are several components associated with a 401(k) plan and a number of service providers that offer plans for small businesses where the owner is the only employee (Solo/Individual K). The costs will vary depending on the complexity of the plan, features, class of investment options, ma...  (more)
Answered Nov 2012
Can I take a distribution from a Cash Balance plan without a penalty?
Rebecca,Congratulations on your new venture and I wish you much success. I also commend you on being a good saver. As for taking a distribution from your cash balance plan, your co-worker is not correct about the penalty being waived. That only applies if you are 59 1/2 years of age or older. Base...  (more)
Answered Feb 2013
Can i take out a loan against my 401k?
ChristopherIn order to find out if you can take a loan from your 401(k) plan depends on your employer. You will need to contact your HR Dept. to find out if your plan allows for loans and the details will be in your Summary Plan Description document. If a loan is allowed it is usually for a mini...  (more)
Answered Nov 2014
I like to know the difference between a DEFINED-BENEFIT PLAN and a CASH BALANCE PLAN?. Also, what are thw advantages and disadvantages?
Edwin,In order to answer your question you need to have an understanding of the two plans.The following are the basics of understanding a cash balance plan. A Cash Balance plan is a defined benefit plan that specifies both the contribution to be credited to each participant and the investment ear...  (more)
Answered Feb 2013
If I return deferrals based on an ADP failure, does the match contribution have to be recalculated based on the corrected deferral amount?
Sharon,The simple answer is.... the match related to the returned deferral is forfeited and may be used to reduce an additional employer match.The posted information is for informational purposes only. This message does not constitute an offer to sell or a solicitation of an offer to buy any secur...  (more)
Answered Feb 2013
What is the process to withdraw funds from my 401k plan.
CedricWithdrawing funds from your 401(k) depends on your particular circumstances. If you are still employed at the company you may be able to take a loan or hardship withdrawal if your plan allows for either of the those. Sometimes in-service withdrawals are allowed. You need to contact your HR de...  (more)
Answered Oct 2014
Can funds be drawn from 401k after age 55 for hadship?
Thomas,The best way to take money out of your 401k plan will depend on three things:- Your age- Whether you are still working for the company that sponsors your 401k plan- Your 401k plan’s rulesSome 401k plans do not allow you to take money out of the plan while you are still employed there. Ot...  (more)
Answered Sep 2013
I am 55 and would like to roll my pension into my 401k. Can I take money out the 401 k later without penalty?
ErnestThe first thing you will need to do is check with your current employer to make sure your plan allows for rollovers into the plan. If they do, they will also be able to provide you with the necessary forms and process to rollover your pension to your 401(k). You may also want to ask them if y...  (more)
Answered Sep 2014
Can my mother-in-law (not currently employed) transfer a defined benefit plans (from a past employer) in to an IRA/Roth? As she's not working, but my father-in-law is, can they open this jointly so that they he can contribute to it?
David,Your mother-in-law could request a rollover to an IRRA (Individual Retirement Rollover Account) given her stated benefit amount if the defined benefit plan document allows. The rollover account cannot be a joint account as they are individually titled. Your father-in-law should open his own I...  (more)
Answered May 2013
How to maximize your 401k employer Match?
Simply... salary defer the maximum up to the match amount at a minimum.. If the match is 100% up to 3% of compensation...contribute 3%.If the employer contribution is a safe harbor match... the match is 100% vested. That means as soon as they make the contribution it is yours to keep.If the matc...  (more)
Answered Nov 2012
How do i allocate more of my 401k to cash in a company 401K. Does cash mean bonds?
As the other advisors have mentioned, cash or a cash equivalent within your 401(k) plan may be a money market fund or a stable value fund. Be sure to review the terms of the stable value fund before selecting it as there may be time constraints on the holding period. Another option to consider may...  (more)
Answered Apr 2013
Can I have an IRA, 401k and SEP IRA all together?
Hi Arunkumar In regards to your question, can I have an IRA, 401(k) and SEP IRA all together, do you mean at the same time or combined into one account? I would need to know the answer to this question first as there are a number of factors to consider. The funds would not be considered comingled...  (more)
Answered Mar 2016
How does a Cash Balance Plan differ from a 401(k)?
MichaelMany business owners and partner of firms are looking for larger tax deductions and accelerated retirement savings. A cash balance plan may be the perfect solution for them. A cash balance plan is a type of IRS qualified retirement plan known as a “hybrid” plan. In a cash balance plan, eac...  (more)
Answered Dec 2014
Should I take money out of my 401k to pay my parent's back taxes?
Hi Tray:Considering your situation, it is difficult to give you a specific answer without knowing more about your personal financial situation. If your 401(k) plan allows for loans, that is an option to consider. You would need to review the plan’s Summary Plan Description to see your options. Kee...  (more)
Answered Aug 2016
I am looking to see if i had a 401k for my 2 previous jobs. do you know how i can do this?
Christa, There are generally four ways to locate information about an old 401k plan:The first and best method of locating an old 401k is to contact your old employers. Ask them to check their plan records to see if you ever participated in their 401k plan. Be sure to have ready your full name, s...  (more)
Answered Dec 2012
How do I get a disbursement from my QDRO 401K?
Hi ShannaWilliam is correct in that you need to make sure you have submitted all of the finalized QDRO documents to your ex-spouse’s employer along with the transfer instructions for the financial institution that you have established an account with to receive the assets. I encourage you to review...  (more)
Answered Dec 2015
An advisor told me to go to cash on Dec 31. My question is when should I get back in?
Hi Edward,As previous responses have indicated, there is no simple answer to your question, and ideally your advisor should have a strategy for re-entry.Unfortunately, market fluctuations are unavoidable and difficult to predict, and investors who attempt to “time” the market risk missing periods ...  (more)
Answered Feb 2014
A self employed LLC with both a Defined Benefit Plan and a 401K plan. What is the maximum contribution to the 401K?
SunnyIf the plan only covers the self-employed individual and no one else, the contribution limit to the profit sharing plan is 6% of compensation. This does not include 401(k) salary deferral of $17,500 or an additional catch-up of $5,500 for individuals age 50 or older for 2014. We need to know...  (more)
Answered Jan 2015
My husband turned 55 in Feb. Pension balance $44,000. Is there Penalty and Taxes?
Sadie,Larry and Michelle have provided a good overview of your options for accessing your husband’s pension plan. I would however, check with his employer’s HR department and find out what distribution options are available to him if he retires early, especially given his age since typically there ...  (more)
Answered Apr 2014
I've Employer Defined Benefit Plan & eligble for retirement at age 55. Lump sum distr. is option but how w/o tax impact?
Kathy,I agree with the other advisors in that you can rollover your distribution to an IRA or to another employer qualified plan to avoid the early withdrawal penalty of 10%. Once you reach age 59 ½ the early withdrawal penalty of 10% would not apply but you would be subject to taxes on any withdra...  (more)
Answered Dec 2015
What exactly is the purpose of the 401k HCE limit?
Jennifer,Being classified as an HCE means that you are earning more than $115,000 which is a good income and does subject you to higher taxes. It is good that you also want to maximize your 401(k) plan contributions. For 2013 & 2014 you are able to contribute $17,500 and if over 50 years old ...  (more)
Answered Dec 2013
How is it possible to lose $14K in 8 months when the Dow is only 200 points when you're supposed to be mitigating risks?
Bolaki,To evaluate performance without bias a few things need to be considered. In brief, to remove bias, we need to keep in mind risk and how indices are constructed. There are two types of risks to consider: systemic risk and non-systemic risk.Systemic riskThis is commonly known as overall mark...  (more)
Answered Dec 2015
I received some paper work about having money in my 401 and want to know how to retrieve it asap i am disabled now?
MariaIn order to take a withdrawal from your 401(k) you will need to complete the distribution request forms. First of all, I would contact the HR department at your former employer and find out about your distribution options given your disability. As the other advisor indicated, you may be subjec...  (more)
Answered Oct 2014
Where do you find an enrolled actuarial who will prepare Form 5500 for a single person self directed 401k over $250K?
Elizabeth,The first place I would check to find actuarial assistance would be an the company where you set up your self-directed 401(k) plan. They should have some resources available they can provide to you. Alternatively, the 401(k) help center has a link www.401khelpcenter.com/pdf/Solok_Vendor_...  (more)
Answered Oct 2013
As I'm 64 and have a 401k loan, can I pay taxes on the loan amount and consider it paid off rather than continuing.
JeffIf you discontinue making payments on your loan the loan balance will go into default and will be classified as a distribution. You will be taxed on the outstanding balance. It is important that you review your Summary Plan Description before making any decisions as each plan has its own featu...  (more)
Answered Jan 2016
What kind of documentation will the DOL accept in determining fee reasonableness in retirement plans?
Michael,Plan fiduciaries have a specific obligation to consider the fees and expenses paid by your plan for its operations. ERISA’s fiduciary standards, discussed above, mean that fiduciaries must establish a prudent process for selecting investment alternatives and service providers to the plan; e...  (more)
Answered Nov 2013
How long before im vested or 20% vested in my 401k plan for zachry industrial inc.
Richard,Any contributions you make to your 401(k) plan and profit on those contributions are 100% vested. In addition, if your employer is making a “safe harbor” contribution or a “safe harbor match” contribution that money is usually 100% vested as well. Typically other types of employer contribu...  (more)
Answered Dec 2013
100% vested in my profit sharing plan. I asked about getting it and they said we cannot get it until 59?
Hi MelissaI am sorry to hear about the mold problems you are having in your house. I suggest that you obtain a copy of your Summary Plan Description (SPD) from your employer to find out all of the distribution options available to you. The SPD dictates what can and cannot be done with regards to th...  (more)
Answered Jul 2016
I need a hardship lonan what do i need to do?
Laquisha,First of all, I assume you are asking about taking a hardship loan from your 401(k) plan. You will need to contact your employer’s HR department to find out what options are available to you. Some companies offer both a standard loan option and a hardship loan option. The conditions are di...  (more)
Answered Mar 2014
Where do you claim a distribution from a 401k after you leave a job and terminate the account?
Jon-PaulIf your son received the distribution in 2015, he would report it on line 16a. If he did NOT roll it to another plan or to an IRA within the 60 days, he will also report the taxable portion of the pension on line 16b. If the distribution was rolled over to another plan or to an IRA within...  (more)
Answered Feb 2016
How old do you have to be to retire, also how many years do you need?
Edward,As the other advisors have pointed out, you can retire at any time as long as you have sufficient savings and/or sources of income to sustain you throughout the remainder of life. Retirement is a needs based analysis and we would need to look at your entire financial picture……how much you ha...  (more)
Answered Jul 2013
What invest mix would you recommend for a soon to be 52 year old investing for retirement? Currently I have a mix of 70% stocks and 30% bonds (mostly high yield).....
Dave,Congratulations on planning ahead for retirement. Given your age there are some standard allocations however we would need to look at your entire financial picture to determine which investment would be most suitable. Additionally, you could invest in target date investments that are based on...  (more)
Answered Jul 2013
I am set to retire October 1, 2016. Should i continue to do the age 50 catch up retirement max into my 457b plan?
Hi JesseYou should continue to maximize your contributions to your 457(b) plan as long as you are still employed. Since your contributions are pre-tax you will be reducing your taxable income and allow that money to grow in your account tax deferred. These benefits apply to your catch-up contribu...  (more)
Answered Mar 2016
Considering refinancing at 15 year at 2.75% or 30 year at 3.5%. We can afford the 15 yr and still contribute to retirement accounts but with rates so low I am leaning toward the 30 yr and investing the difference. Is this a good plan?
Max, when deciding between a 15 year or 30 year mortgage the first consideration is being able to afford the higher mortgage payments. It also has to do with the opportunity costs of the money and your age. Since you are relatively young and have plenty of time before retirement, if you can earn o...  (more)
Answered Jan 2013
For my company Profit sharing plan. I have 28 years in the plan and am able to make withdrawals 1 time per year.
Hi DannyWhen you take a distribution from your retirement plan the monies are subject to ordinary income taxes. Given the amount you withdrew, even though some was withheld for taxes, it may have moved you to a different tax bracket thus the additional taxes that are due. Also, you are younger th...  (more)
Answered Jan 2016
I have a 401K through Things Remembered. I no longer work with them. How do I go about getting my money out of my 401K ?
Hi SamanthaThe first thing you will need to do is contact your former employer’s HR department or look on your most recent statement and contact the organization that provides you with quarterly statements for your 401(k) plan to obtain the necessary distribution paperwork. You have a few options a...  (more)
Answered Jan 2016
How do I close out my account?
Darrell, It is not closing the account that should be the focus.... The focus is what are your long term financial goals and income needs.The retirement plan is traditionally the main asset in order to generate income in retirement along with social security payments. Whether you should close it ...  (more)
Answered Jan 2013
How do I change beneficiary on life insurance policy?
Hi JoyceIn general, you can change a life insurance beneficiary at any time and if need be as many times as needed. However, an obstacle may arise dependent on the type of beneficiary designation you assigned to the beneficiary.If you made the beneficiary designation irrevocable when the policy wa...  (more)
Answered Aug 2016
My name is Walter Hill, I used to work for Moog Aircraft Group Torrance Operations. I am afraid that they do not have my current contact information, how can I update this as I am close to retiring.
Walter,In order to update your current contact information you should call the number on your retirement plan statement and give them your updated contact information. If you do not have a statement, call the HR department at Moog Aircraft Group in Torrance and provide them with your updated inform...  (more)
Answered Feb 2013
Any idea where I can find a sample written notice of intent to obtain a Qualified Domestic Relations Order to send to the pension plan administrator to let them know a QDRO is being drafted and not to allow the plan participant to withdraw funds?
Brenda,Each state may have different requirements with regards to QDROs. The following link to the DOL website http://www.dol.gov/ebsa/publications/qdros.html provides a lot of information and should be helpful in addressing your question and concerns. It would also be a good idea to contact the H...  (more)
Answered Jul 2013
I am 57 (58 in January ) years old and have just been laid off permanently from my job of 24 years to a buyout.
Steve,I am sorry to hear about the loss of your job after so many years. Depending upon the type of retirement plan you have there are various options. Assuming it is a 401(k) plan, if you take a distribution from a 401(k) after you leave your job, you can withdraw the money, but you're going to h...  (more)
Answered Dec 2013
How much is the penalty for taking money from 401k plan ?
Barbara,First of all it is never a good idea to take money from your 401(k) as it is designed to be a benefit to you upon retirement. Explore other options first. If you do need to withdraw funds from your 401(k) you should see if there is a loan provision in your plan to avoid taxes & penaltie...  (more)
Answered Aug 2013
Should my 401K contributions be 2 weeks behind being deposited into my 401K plan?
Nicole,Department of Labor rules require that the employer deposit deferrals to the trust as soon as the employer can; however, in no event can the deposit be later than the 15th business day of the following month. Keep in mind that the rules regarding the 15th business day isn't a safe harbor for...  (more)
Answered Aug 2013
How do I find out my account balance?
Marvin,Since you have not provided any information on the type of account you are trying to find the balance of, it is very difficult to answer your question. If it is a 401(k) account you are inquiring about you should be receiving a quarterly statement or at the very least an annual statement tha...  (more)
Answered May 2013
How can i cash in my retirement?
Randy,The purpose of your 401k retirement plan (assuming this is what you are referring to) is to provide for your golden years. There are times, however, when you need cash and there are no viable options other than to tap your nest egg. For this reason, the government allows plan administrators (...  (more)
Answered Jun 2013
My husband had a withdrawal from his Thrift Savings Plan. Will we be paying state taxes on our 2015 Michigan return?
KathleenAs an investment advisor we do not provide any tax advice and each state’s regulations may vary. With regards to potential state taxes in Michigan on the withdrawal your husband took from his Thrift Savings Plan, you need to speak with your tax preparer or an enrolled agent for your specifi...  (more)
Answered Mar 2016
I will be retiring in 6 to 9 months. How should I distribute my 401k contributions, in order maintain current balance?
Joseph,Congratulations on your upcoming retirement. It is good that you have taken advantage of participating in a 401(k) during your working years and accumulated a nest egg for your retirement. There are several options that are available for distributions from your 401(k) upon retirement but i...  (more)
Answered Jun 2013
I want to take a small loan out of my 401. What are the rules???
Hi DavidWe always recommend that you explore all other options before taking a loan from your 401(k) plan. It is designed for retirement and you will be reducing the compounding effect of the assets over time. If you decide to take a loan the first thing you will need to do is make sure that your ...  (more)
Answered Sep 2016
My wife and I each have 401ks. She passed away last year, so do I roll her account into mine or into my IRA .
WillieI am sorry for your loss. The other advisors have made some very good points. Many beneficiaries assume that there isn't much to do but close the account and spend or invest the money. But, if you do so without carefully investigating your options, you might be making a very costly mistake be...  (more)
Answered Sep 2016
Are 401K fees generally higher than IRA fees even the the underlying mutual fund is the same?
Hi RalphThis is a great question and it is good that you are taking an active interest in fees associated with your retirement account. With regards to a 401(k) plan versus an IRA, each of these vehicles have a different fee structure and within each the fee structure is dependent on the size of th...  (more)
Answered Jun 2016
Before I will sit down with an advisor I always ask if he/she would show me 5yrs of their personal investment statments. If they will not or can't provide them I will not waste anymore of their time. I figure that if I'm to let them choose how to invest my money I should know how they invest their
Ray,I do not have an issue showing my investment statements and reviewing the strategy and adjustments over the last few years. I will share this information to the right person under the right circumstances. I need to understand your investment goals, risk tolerance and investable assets. If you ...  (more)
Answered Aug 2013
My wife and i are looking at buying a new house. With the birth of another baby, we have decided that we need more room in the house. I have heard that i can take out a some money from my 401k for a down payment. Would this be a loan that i would have to pay back in 5 years? Are there any penalties?
Brian,Congratulations on the new baby. First of all, explore other options for obtaining a loan. Your 401(k) plan is designed for your future and financial needs at retirement. Secondly, you need to check with your employer to make sure your plan allows for loans, the terms and fees associated with...  (more)
Answered Aug 2013
I have a single 401k but I just reviewed the fees. I believe the rates are high. I heard a sep-Ira might be a better choice. Can I have both open?
Fred,I'll answer the last questions first: You cannot double dip into both the SEP and 401k / Profit Sharing buckets. The 25% of Compensation Employer contribution limit is shared. A SEP has ONLY a Profit Sharing style contribution. There is no employee deferral component like a 401(k). Also a 4...  (more)
Answered Nov 2012
If I terminated a comany in june 2015 when should I expect information from that employer to cash out profit sharing?
Hi ChristineA distribution from a qualified retirement plan such as a Profit Sharing plan does not happen automatically when you terminate employment. You will need to contact your previous employer and request the distribution. As the other advisor mentioned, there are other conditions to be awar...  (more)
Answered Apr 2016
Can I borrow money from my 401k?
Joseph,Borrowing from your 401(k) should be your last resort. Explore other options first as it can be very difficult to make up for the lost earnings you can obtain in your 401(k) and it will impact your retirement income. If you must borrow for your 401(k) you need to first contact your HR depart...  (more)
Answered Jul 2013
Is purchasing I-Bonds for retirement the right choice for me?
Eric,The decision to purchase I-Bonds in your retirement account depends on your investment strategy and outlook on inflation.You should look to diversify your portfolio into different asset classes to help grow your assets. Putting all of your assets in I-bonds is not prudent even if you believe...  (more)
Answered May 2013
Can i max out my 401k and a roth ira and a tradtitional ira?
Jacob,There are combined limits for qualified and non-qualified plans and certain compensation limits. You can contribute more to your IRA in 2013. For both traditional IRAs and Roths, the maximum you can contribute is now $5,500 (the catch-up contribution is still $1,000 for people age 50 or older...  (more)
Answered Jul 2013
What kind of admin fees are reasonable when only 3 people participate in the 401K plan?
Hi BeckaIt is great that the owner of your company wants to match up to 4% of employee contributions in the 401(k) plan. As the other advisor indicated, that will probably allow the owner to contribute more to the plan. Payroll companies are not always the best fit for a 401(k) plan as it is diffi...  (more)
Answered Apr 2016
I am considering retiring. Can I request a lump sum distribution. Will they request my bank account info?
Hi Thomas,As the other advisor indicated, the 2nd quarter is the period covering April, May & June of any year. When you retire, there are a couple of distribution options available to you from your company’s retirement plan. You can take a lump sum distribution that will be a taxable event, y...  (more)
Answered Jul 2016
Is there a death benefit with the Scholle Corp. Employee Retirement Plan?
Anna,In order to find out if there is a death benefit with the Scholle Corporation Employee Retirement Plan you would need to contact the Human Resources Department at Scholle’s corporate headquarters in Irvine at 949-955-1750. They will be able to provide you with a Summary Plan Description docume...  (more)
Answered Jun 2013
What to do with 401K from previous employer.
BrendaThe only way to avoid any tax penalties would be to roll your 401(k) account to an IRA. When you take a distribution from the 401(k) or IRA you will still be taxed on the distribution as ordinary income. Not knowing the extent of your disability it is important to know that the IRS dictates t...  (more)
Answered Feb 2016
I worked for Panda Express for two years.Im pretty sure they opened a 401k account for me.How can I verify if this is so?
Hi NoeliaIn order for you to find out if you have a 401(k) account that was established for you while working at Panda Express you will need to contact the corporate office of Panda Express (Panda Restaurant Group) and speak with the HR department to find out the status of your account. Their phone...  (more)
Answered Jul 2016
I'm on a committee to recommend a 401k policy for my firm. We've been discussing whether to automatically enroll all employees (they could opt-out), and also to auto-increase contributions with raises. What are the costs and benefits to these policies for our firm and employees? And are there rules
Liam,The majority of employers recognize the powerful impact auto-enrollment plays in preparing workers for retirement. The conversation has shifted from if to implement auto-enrollment and auto-contribution increases to when we should implement these features.The Pension Protection Act acknowledg...  (more)
Answered Feb 2013
How soon after I retire can I expect to paid my profit sharing?
Marian,The timing of the payout after you retire or leave the company depends on the plan document. Check with your company's HR department or plan administrator for specifics on your plan.A profit-sharing plan is a defined contribution plan in which your employer has discretion to determine when ...  (more)
Answered Sep 2013
Who is my plan administrator? 3M Voluntary Investment Plan #41-0417775-005?
Eugene,The employer is typically the plan administrator as shown on the 5500 annual filing. The form could be found online at http://www.efast.dol.gov/portal/app/disseminate?execution=e2s1. Just enter "3M voluntary investment plan" in the plan name field and click on Search button. On the search re...  (more)
Answered Nov 2012
I'm 54 and will be laid in March. I turn 55 later in the same year. Will I be able to withdraw 401k without penalty?
BryanI am sorry to hear that you will be losing your job in March. As long as you turn 55 in the calendar year that you are terminated from employment you will not face an early withdrawal penalty from your 401(k) account. Keep in mind that the distribution will be subject to a 20% withholding for ...  (more)
Answered Feb 2016
Hello. Several years ago I was employeed by Whole Foods Market (Milwaukee, WI branch) I left the company. I was enrolled in their 401k program. How do I access this information from them and move it into my current retirement plan (through Vanguard?)?
Ben, you should be receiving quarterly statements from the provider of your 401(k) that you had when you were employed at Whole Foods. There should be contact information on the statement for anyone that has questions and I would encourage you to contact them as they will be the ones that provide yo...  (more)
Answered Apr 2013
If i retire at 55. will i have the 10% penalty with the traditional plan. they do not offer a lump sum pay put.
Victor,In order to answer your question in greater detail with regards to a penalty from a tradition plan if you retire at age 55 we need to understand more about your financial needs and goals. Additionally, it depends upon the type of plan you have, such as a 401(k) plan, IRA, Roth IRA, pension p...  (more)
Answered Nov 2013
I have two jobs and I am 56 yrs old. Is it possible I can max out my 401K for each job, i.e. $ 23,000/- each total $ 46,000/- or only maximum of $ 23,000/- combined from each job. Pls clarify. Thanks Thomas?
Thomas.The 401(k) limit applies to all 401(k) accounts you might have for the current year. If you work at two or more jobs or switch jobs in the middle of the year, then you may need to track your 401(k) contributions yourself to ensure that you don't contribute over the limit. For 2013: $17,500 (...  (more)
Answered Jun 2013
Can i return to work after taking 401K withdrawls at age 55 and continue to withdraw from my 401K ?
DonIt is great that your former employer has reached out to you with a nice job offer. You indicated that you have been making withdrawals from your 401(k) without penalties since you turned 55. That indicates that your plan offers an in-service withdrawal option. If that is the case, accepting the...  (more)
Answered Nov 2016
How much money can i borrow from my 401 k?
Hi JessicaFirst of all, it is never a good idea to borrow from your 401(k) as it is designed as a retirement savings vehicle with contributions reducing current taxes and earnings growing tax deferred. You should exhaust all other resources first. If you do need to borrow from the 401(k) you can b...  (more)
Answered May 2016
401k withdrawal denied?
TerryAs the other advisors pointed out, reviewing the Summary Plan Description document (SPD) is the first step to determining the distribution options and time frames associated with your specific plan. There is no rule of thumb as each Plan’s document tends to have its own special features. If y...  (more)
Answered Jan 2016
How do I determine traditional 401 vs. ROTH 401?
William,Without knowing your specific tax situation it is difficult to identify one way or another as to the appropriateness of traditional 401(k) contributions or Roth 401(k) contributions. You also need to take into consideration your current cash flow. You need to speak with your CPA or tax co...  (more)
Answered Jan 2016
Re: my 401: in te mid 90's before Roth IRA's were around I contributed the max into aftertax savings - I am not sure how much I put in over those years but it's now worth about $160K and is mixed in with the regular funds -- can this be turned into a Roth with no tax's or how would I handle it. I wo
Robert, We will need additional information to better understand your question. Are you still working for the company where you contributed to an after - tax savings program? If not, could you please clarify what you mean by "regular funds". Thanks!The posted information is for informational purpo...  (more)
Answered Jan 2013
I've just discovered your website and my employer (Dartmouth Hitchcock Clinic) sponsord 401A/401B plans have a 60 rating. I am offered one Index fund - Vanguard INST INDEX - and would like to allocate 75% of my future investing to this fund. I understand that there are no fees associated w/ index
Carolyn,In order to provide you with specific guidance I would need to know more about your current plan, the fees, your goals and the complete investment menu available to you. In general, all funds carry fees or the company managing the fund would not be able to stay in business. With regards t...  (more)
Answered May 2013
How can I find fee structure bench marking for non-profit 403B plans in my area? I am in the Washington DC-Metro region?
SusanGiven all of the nuances associated with 403(b) plans and the fact that a plan may have multiple vendors it is challenging to benchmark the fees. This is not something that we can do without all of your plan’s information. The first step would be to contact your plan’s investment advisor or br...  (more)
Answered May 2016
401k alternative options for small business?
VThank you for providing some information on your current 401(k) plan. A start-up plan can be a bit more expensive than one that has at least a few hundred thousand in assets. As plan assets grow there is more leverage in pricing. It is difficult to determine if the Mass Mutual fund fees are exces...  (more)
Answered Sep 2016
I will have two children in college this fall and need to find a way to pay for their tuition. I have a 401(k) through my employer that I am considering taking a withdrawal from. Should I use my 401(k) to pay for their college education?
Meghan,Planning for college tuition is a daunting task. Since your 401(k) plan is designed for your retirement years, it should probably be the last place you go to finance college tuition depending on other resources you may have. Have you established a 529 College Savings Plan? This is an educat...  (more)
Answered Apr 2013
How do I withdraw my money?
Connie,In order to answer your question on how to withdraw my money, it depends on what type of account you want to withdraw from. The rules for withdrawals from a 401(k) account are different than those from an IRA account or other types of investments you may have. Please let us know the type o...  (more)
Answered Jul 2013
Is ok if I contribute 2% traditional 401k and 6% roth 401k? Is this a good mix or where I should I be contributing more?
JorgeCongratulations on being active in your company’s 401(k) plan and planning to contribute 8% of your salary towards your retirement. Since your plan allows both pre-tax 401(k) contributions and after tax Roth contributions you can contribute to both (2% traditional and 6% Roth). Because you are...  (more)
Answered Dec 2015
I have an annuity that I bought 8 years ago. It has been sold to another Ins. company, Transamerica Advisors. I had no control over the continued participation in the annuity. Yet my IRA is in this annuity and I wonder about its solvency.
Howard,I agree with the comments made by the other advisors. The key is to determine if the annuity you purchased is fixed or variable as they each have their own set of guidelines to follow. As David mentioned you can evaluate Transamerica Advisors rating at insure.com to determine their solvency...  (more)
Answered May 2013
I have worked for Chubb Group from 1975 to 1982. I believe I was fully vested when I left the company. When I have recently contacted Chubb about collecting my pension they have told me I am not legible to collect as I would have to have been working there for 1o years. I feel this is not true a
Jarmila,You are on the right track. You need to review the plan document and any amendments while you were employed at Chubb Group. Given your position and tenure at the company there could be multiple retirement benefits that may be available to you. I would request a company benefits specialist a...  (more)
Answered Mar 2013
What to do with a non-deductible Traditional IRA?
Hi Lola,You could keep the funds in your Traditional IRA and invest it more aggressively but the downside is that all of the gains you accrue in your IRA will be taxable at the time of withdrawal. If you were to withdraw the funds from your Traditional IRA now, you wouldn’t pay income tax but you’d...  (more)
Answered Feb 2016
Is ROTH IRA different from IRA?
Liz, You have indicated that your sister has inherited her husband’s IRA and Roth IRA. What she does now could have far-reaching tax implications. The one thing she cannot do is ignore the tax issue. As a surviving spouse, you have one option that nobody else has: rolling over inherited IRA assets...  (more)
Answered May 2013
I a currently in a finacial harship...i just got into am accident that i have liability only plus my mrtgage is due.
LarryI am sorry to hear about your accident and the difficult situation you are currently in. You will need to reach out to your employer to determine what options your 401(k) plan provides, such as hardship withdrawals or loans. There are certain guidelines that will need to be met if you are able...  (more)
Answered Nov 2016
I am in the Albemarle 401K Savings Plan. My questions is concerning the 70 1/2 RMD. I am still an active employee and turned 71 November, 2012. I have not gotten a notification from Merrill Lynch regarding RMD.
Ivory S.,RMD stands for required minimum distribution, which refers to the smallest amount you must take out of your retirement plan to avoid income tax penalties. In certain circumstances, you can delay your required minimum distributions, which is beneficial because you can continue to take advan...  (more)
Answered May 2013
I have a small amount of money in a 401k with Vaden Holding, Inc. How do I access it? . I no longer work for them.
Craig,You should be receiving quarterly statements for your 401(k) plan that you had with Vaden Holding, Inc. that will provide you with information on how to access your account. If you are not receiving your statements you should contact the HR department of your former employer to find out what...  (more)
Answered Jun 2013
How to find an old 401 k account?
Hi RodneyWilliam and Larry have provided good information on ways to track down your old 401(k) account from National Envelope Corp. As William mentioned, National Envelope is now part of Cenveo, Inc. headquartered in Stamford, Connecticut. I would recommend contacting Cenveo and ask for the HR Dep...  (more)
Answered Aug 2015
My wife currently has two retirements plans with the same fund family: 401k & 403b. Can she roll the 403b into the 401k?
Brian,I agree with the other advisors in that your wife has a couple of different options available to her. The IRS does allow her to roll the monies from her 403b account to the 401(k) account she is currently contributing to but she needs to confirm with her employer that the 401(k) plan allows f...  (more)
Answered Feb 2015
How to find unclaimed money?
Hi MelanieYou didn’t indicate what state you live in or what type of unclaimed money you are looking for. The state controller's office sends out unclaimed property notices annually. Often those notices don’t reach the property owner. To find out if any of this property belongs to you, visit the Ca...  (more)
Answered Feb 2017
Is there any way that i can cash in my 401k plan due to a hardship and also is there any way that i can talk to an agen?
Molly,I am sorry to hear you are experiencing a hardship. You will need to contact your employer’s HR Dept. and get a copy of the Summary Plan Description (SPD) to determine: 1) if there is a hardship provision in the plan & the requirements to qualify and 2) also see if there is a loan provi...  (more)
Answered Feb 2017
Life insurance question?
Hi Jerri,Thank you for reaching out and sharing your concerns about your husband’s health. We at Karp Capital strongly believe that having adequate coverage is paramount and it will be our pleasure to answer your question. The answer is yes you should be able to purchase another policy; however, th...  (more)
Answered Jul 2015
How can I tell if I am paying too much in fees, commissions, etc.?
Nick,There’s a wide range of different possible fees that can be incurred on an account. There could be management fees, trading fees, or even fees associated with owning a certain position ( “see the prospectus” for more information). An experienced financial advisor knows how to avoid unnecessar...  (more)
Answered Jun 2015
I have a profit sharing plan with a former employer. How do I get the money from the profit sharing?
Hi CherlCompanies do not usually post detailed information about their retirement plans on their website. You will need to call your previous employer and asked to speak to someone in the HR or Benefits Department. Let them know you are a former employee and want to know how to get a distribution f...  (more)
Answered Jun 2017
    *Answers are submitted by advisors without compensation.

    Licenses & Conducts

    SEC
    U.S. Securities and Exchange Commission
    • license status
      Registered
    • disclosures
      None
    • as of date
      Nov 25, 2015
    FINRA
    FINRA
    • license status
      Registered
    • disclosures
      2
    • as of date
      Jan 16, 2016
    Review the status and details of the disclosures noted above using the SEC's Investment Advisor Public Disclosure website:

    Assets

    Advisor

    Last updated on Aug. 30, 2016
      • $198.3M
        Total Assets Under Management
      • $0
        Total Assets Under Advisement
      • 185
        number of clients
      • $1.1M
        Estimated Average Account Balance Per Client

    Karp Capital Management Corporation

    Last updated on Jan. 31, 2017
      • $248.2M
        Total Assets Under Management
      • $0
        Total Assets Under Advisement
      • 185
        number of clients
      • $1.3M
        Estimated Average Account Balance Per Client

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