Is it through a bank or is it at the Bank you that you have a savings or checking account with?. and What happens to it when quit the Job that you have the 410K retirement plan with. Also How does it work?.
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401K can only be offered thru an employer.
You elect a certain percentage of your pre-tax earnings to go to the 401K and be invested in funds of your choice.
When you leave the employer you have the choice of keeping the 401K with the employer (but no more contributions go into it), you can roll the 401K into an IRA (individual retirement account that you can open with any bank or broker) or you can wait until your new employer offers you a 401K and see whether you can roll the old one into the new one.
Or... you can get paid out - minus the 10% penalty and the 25% you will owe the tax man when you file your return for the year.
The idea is to keep the 401k's going until it is time to retire and then make your withdrawals to supplement your social security check.
That you can do when you reach 59 1/2.
An IRA (Individual Retirement Account) and Roth IRA are available thru any bank or financial brokers.
An IRA is funded with pre-tax money and you can deduct your contributions from your tax liability for the year. (it has as many restrictions as a 401K when it comes to taking your money back out before you are 59 1/2 years old)
The Roth IRA is funded with aftertax money and this money is always yours to do with as you please. (But not the interest it accrues... take out the interest before you are 59 1/2 and you are paying taxes on it).
I prefer the Roth IRA overall. Because once you reach retirement the principal money is yours and can not be taxed again. Who knows what kind of taxes we will have to pay once we get to the retirement age...
i just recently did this. i rolled my 401k into in IRA account. The new company that i work for had an advice center and with their help i found 2 IRA mutual funds based on my age and retirement date. Once i had the account # the funds were to be transferred to I called the other bank gave them the info and they sent my money from my 401K to the new IRA. It was really easier than i thought it would be. you should be getting a statement about your 401k with a service # quarterly, they should be able to answer any detailed questions you have. if you just plan to take out the money not roll it over and you are not of retirement age there will be tax penalties they can advise you of.
It is through whoever the 401 is with - not just any bank. You must roll it over into an IRA if you are not retirement age or you will lose about 30% of the value with the fees they impose on early withdrawal.