Commonly Asked Questions of 401khelpcenter.com

Here are some of the most commonly asked questions of our pension experts.

• What is a 401k plan?
• What makes a good 401k plan?
• My husband recently changed jobs and cannot contribute to his new company’s 401k for a full year. Can we contribute to an IRA until he qualifies for the new 401k?
• What are the rules regarding hardship withdrawals from a 401k?
• What are the general rules regarding loans from a 401k?
• Do you pay income tax twice when you take out a 401k plan loan?
• I still have a 401k account with my former employer. I would like to transfer this account into my IRA. Can this be done? If so, are there any penalties?
• What distributions from a 401k are not subject to the 10% early withdrawal penalty?
• I have had a 401k for the past three years with a former employer. I recently went to work for another company that offers 401k. How can I rollover the 401k from my previous employer into my new employers plan without paying any penalties ?
• Our company is getting a new 401k plan. We would like to take what we have in our old 401k and roll them into an IRA so we can invest it ourselves. We have been told that we can not do this and the lump sum must be rolled over into the new plan. Is this true?
• I am 52 and taking an early retirement package with my company. If I would have worked until 55 I would not have to pay the 10% early retirement penalty on my 401k. If I begin to take distribution now under the Substantially Equal Payment rules, will I still be exempt from the 10% penalty when I turn 55?
• I have a 401k at my current employer, but plan to change jobs. Can I start a second 401k account at my new employer and still keep the 401k account at my former employer?
• I contribute to my 401k each pay period. When I receive my quarterly statement, my account has grown in value, but the mutual funds have lost value for the period. How can the value of my account be up when the investments have lost value?
• I want to retire before age 59½. How do I avoid the 10% early distribution penalty on retirement payments from my 401k?
• I have a 401k account at my former employer. If I needed to get access to the cash, what are my options?
• What is the maximum amount of money you can contribute to your 401k annually? Does the amount increase each year?
• How soon does my employer have to deposit my contributions deducted from my pay into my 401k account?
• My husband currently has a 401k plan and wishes to quit working and open his own small business. Can he use the 401k money to open this business?
• Can you use 401k assets to purchase a home without an early withdrawal penalty?
• After working for four years in the USA as a temporary worker, I'm planning to return home. I'd like to know what are the implications to my 401K, IRA accounts.
• Can I rollover my U.S. 401k into a U.K. pension scheme when I return home to the U.K.?
• I am in the process of switching jobs. I will not be able to participate in my new employers 401k plan until I have been employed for one year. What do I do with my plan from my former employer if they will not allow it to remain with them? The amount is under $5,000.00.
• How frequent is my employer suppose to provide 401k plan participants with account statements?
• What is the difference between a 401(a) plan and a 401k plan?
• What information and reports is my employer required to give me on my 401k?
• The company I work for was acquired by a larger company. My 401k has been frozen. What does this mean and what can I do about it?
• How large is the 401k market?
• What happens if I inherit someone else's 401k account?
• What happens if I contribute more than the annual allowable limit to my 401k?
• If I contribute to my 401k plan, can I still contribute to an IRA?
• Does my employer have to provide a matching contribution?
• What is a QDRO?
• Is a QDRO something I can do myself?
• Why do I need consent of my spouse when I want another party as beneficiary of my 401k or take a distribution?
• How long can my former employer hold my account balance once I quit working for them?
• What is the contribution limit for employee's in Puerto Rico?
• How Many 401k's Can I Have?
• How do I locate an old 401k that I think I contributed to at a former employer?
• I can't get my employer to pay me my retirement money. Whom do I contact?
• If I borrow money from my 401k to purchase a home, is the interest I pay back to my 401k deductible as mortgage interest on my 1040?
• Can I withdraw funds penalty free from my 401k plan to purchase my first home?
• My understanding is that if I am over age 55 and default on a loan through my 401k when leaving the company, the 10% penalty is forgiven. Can you confirm that for me?
• Will a 401k loan appear on my credit report?