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Newest 401k Content


Deductibility Limits on Traditional IRA Contributions & IRA Contribution Limits from 2002 to 2012
Hardship Withdrawals and Accessing 401(k) Loans
401(k) Rules – Contribution Limits, Catch-Up Contribution Rules, Vesting Rules, 401k Eligibility Rules
Salary Deferral Contributions Made to 401(k) Retirement Account
Important Year End Statements for Individual Retirement Account (IRA) Holders
5 Things Every 401(k) Plan Should Have
The Roth 401(k) – How After-Tax Contributions Work, Comparisons with Roth IRA, Future Tax Rates, Contribution Limits & Frequently Asked Questions
What is a Traditional IRA? History of IRAs, Eligibility Requirements, Ineligible Compensation, Distributions from a Traditional IRA & How Income Tax Deductions Work
How to Invest in Real Estate using your Individual Retirement Account (IRA)
Rolling your 401(k) – Trustee to Trustee Direct Rollover, Modified Adjusted Gross Income (MAGI) Income Limits for Deductible Contributions to a Traditional IRA
401(k) Vesting – How It Works, Vesting Schedule, Number of Years of Service
401(k) Lump Sum Distributions – Tax Advantages, Rollover to IRA, Tax Deferred Contributions and more
401k Rollovers to an Individual Retirement Account (IRA) – Things to Consider Before You Rollover, Avoid Transfer Penalties, Move Employer Stock, etc.
401(k) Withdrawals – Early Withdrawal Penalties, Rollover Withdrawals, Exceptions and Tax Consequences
Understanding the Rules for Participating in a 401(k) Plan, Beneficiary Appointment, 401(k) Plans for High Paid Employees

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Top Frequently Asked Questions about 401(k) Plans

WealthCycles.com - Gold & Silver Investing News

b) Mergers, Acquisition & Bankruptcy

My company was recently acquired or sold and the new company informed us our money will be transferred to their new 401(k) plan. However, I do not like the range of investments offered in the new plan, can I leave the money in the old 401(k) plan with my old employer or transfer it to an IRA?

- This happens quite often when a company is acquired, merges with another company or is sold off. The acquiring company wants to reduce the hassle of switching 401(k) plans as well as reducing the administration costs. The final decision of how the 401(k) funds will be moved and managed will depend on the purchase agreement confirmed between the 2 companies. The purchase agreement usually states for the automatic transfer of funds from the old company’s 401(k) plan to the new company’s plan. Depending on the costs involved, the purchase agreement may not allow you the employee to withdraw or take a distribution of your money, or roll it to an IRA due to the inconvenience of transferring to a large number of IRAs or due to the risk of you spending your retirement money away.

My employer seems to be in a bad financial condition. I am worried about what happens to my retirement funds if it declares bankruptcy.

- As soon as your 401(k) contribution is deducted from your biweekly pay check, your employer is required to contribute it to your 401(k) plan within 15 days. However, it is common for employers who are cash strapped to abuse this area of the law. As soon as the money is deposited in to the 401k plan, your money is safe from creditors and debtors of the company, as the money becomes your property, and not the property of your employer. If you suspect your company is in financial difficulty, be sure to check your employer’s 401(k) online website to see if the funds have been deposited in to your 401(k) account. You can also use telephone banking to check for this information. Stop contributing to your 401(k) plan if your company doesn’t let you check funds online, and you suspect they will declare bankruptcy soon.

My employer went out of business 3 months ago and I am still waiting to get money out of my 401(k) plan. The 401(k) plan administrators are all laid off and service providers tell me they cannot pay my money. What can I do?

- It is unfortunate when a company goes out of business because both the owners and employees suffer. Also, it is a time when many creditors and the banks are looking for the owners and stakeholders. If your money has been deposited in to the 401(k) plan, then it belongs to you and the creditors cannot make a claim over it. When the courts appoint a trustee to liquidate the business and close the 401(k) plan, normally the funds will be paid out to the investors who have contributed the money. If you have any problem in getting your money, it is best advised to contact the Department of Labour at http://www.dol.gov; you should write a letter to your senator and Congressman explaining your situation, your place of employment and when your company went out of business and ask for help.



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