2010 401k

Frequently Asked Questions

1. QUESTION:
   Do I claim a 401k loan on my 2010 taxes?
   I took out a loan in 2010 from my 401k. I was automatically put on a payment plan over 5 years that takes the payment from my paycheck every two weeks to pay back the 401k. Is this loan considered income that I should be paying taxes on?

   • ANSWER:
     No, loan is not an income. So you do not claim this.

     http://taxipay.blogspot.com/2008/08/elective-deferrals-401k-plans.html

2. QUESTION:
   in Quicken 2010, how can I have my 401k be an asset to one of my loans?
   I have Quicken 2010 Deluxe and I am trying to fully organize my finances. I have a loan out against my 401k, but there’s no way for me to link my 401k to the loan, making it an asset. Anyone know how to do this?

   • ANSWER:

3. QUESTION:
   can I make a maximum contribution to my 401K to reduce my tax liability for 2010 now?
   I just lost my job, and they paid me a lump sum severance pay, I would like to Max out on 401K limit for 2010 to reduce tax for 2010
   Thanks for your answer

   • ANSWER:
     If you are no longer employed, you won’t be able to add to that employer’s 401k plan. Roll the 401k over to an IRA and add the max contribution for an IRA.

4. QUESTION:
   Can I contribute to my 401k in 2010 and have it decrease my 2009 Gross Income? I have not reached the max?
   I have contributed ,800 and the max is ,500. If legal, I want to contribute today and decrease my overall gross income; which will lower my tax obligation. Allowing me to not owe both Fed and State taxes.

   • ANSWER:

5. QUESTION:
   in 2010 i withdrew my 401K but 4 years ago i moved out permanently from california.?
   In 2010, i withdrew my 401K . Do i have to file my california resident income tax return when i moved away permanently from california and now reside in asia four years ago.

   • ANSWER:
     If you had the proceeds sent to an out of the country address you don’t have to file a CA return. If you had the check issued to a California address, then you must file.

6. QUESTION:
   If you convert you 401k/Traditional to a Roth in 2010, you can spread the taxes across 2011 and 2012?
   Effectively lower your taxes on the convert portion and therefore have an tax advance? Is this true?

   • ANSWER:
     That is what I have heard. Also in 2010 there is no limit on income to do this.

7. QUESTION:
   I lived in 2 states in 2010. I made an early withdraw from 401K in which state do I claim it?
   I earned the 401K in the first state, and received the withdrawl after I became a resident of the 2nd state, which is the state listed on the 1099. Do I have to claim this money on federal AND in both states?

   • ANSWER:
     Depends upon the state and its partial year resident rules. Some states (DC for one) consider your full income for the year and tax based on that. Others (NJ for one) will only tax on the income you received while you lived in the state.

     Edit: What I meant to say about states like DC is that it might affect what percentage of your income you pay in taxes.
     _

8. QUESTION:
   In 2009 tax rules, If I did not take RMD from my IRA and 401k in 2009, do I have to take twice in 2010?
   In 2009 I did not have to take my normal Required Minimum Distribution from my IRA or 401k. I did neither. In 2010 do I have to make up for that by taking twice the normal distribution from both accounts?

   • ANSWER:
     In 2009 there is a special waiver so that you do not need to take your RMD from your IRA or 401(k). You do not need to make up this RMD in subsequent years. Unless the waiver is extended, you simply begin taking your RMD as usual for the 2010 tax year.

9. QUESTION:
   My husband and I file a joint tax return and he has a 401k at work, I am unemployed and was all of 2010. Can?
   Can I put any money for myself in an IRA for 2010 that can be deducted for tax purposes?

   • ANSWER:
     See IRS Publication 590 and Google “spousal IRA.”

10. QUESTION:
    I didnt borrow against my 401k in 2010 but I received a 1099 for my 401k 2010.. why?
    I took out a loan and did a withrawl in 2009 from my 401k. i just paid taxes on the withrawl part because i filed taxes wrong at the beginning of 2010. Now I’ve received a 1099 from my 401k for 2010.. but I didnt borrow against it. I did however change jobs in 2010 and i havent yet rolled over my 401k and my loan was not paid in full. What is the purpose of the 1099 for my 401k (2010)?

    • ANSWER:
      The unpaid balance on your 401(k) loan automatically became an early withdrawal once you terminated your employment without repaying it in full. It IS a 2010 withdrawal. Too late now.

      Look at Box 2a (taxable amount) and Box 7 (code showing withdrawal reason).

11. QUESTION:
    If I quit the job before Jan 2010 and there is a dividen distribution going out in feb from my 401k,?
    Will I be able to still get that money?

    • ANSWER:
      Terminology problem here… As long as you still hold the 401(k) account, the investments in it continue to accrue returns as before – whether you are still employed or not. If by “dividend” you mean an employer match contribution, that is totally up to the employer.

12. QUESTION:
    I was unemployed for 6 months in 2010, I had to take money out of my 401k to stay afloat.?
    10% of each withdrawal was withheld to pay taxes. Is there anyway I can average the withdrawals
    taken in 2010 over several years?

    • ANSWER:

13. QUESTION:
    I lost my son in feb,2010 how do i find out about his insurance policy and 401k plan?
    He have a little girl but the insurance company is giving me a hassel they paid nothing on his burial as though they are gonna leave the bill for me when he had accidental life and burial insuarnce plus 401k now they are saying they paid it to the little girl which is on hold until she turn 18

    • ANSWER:
      They are not giving you a hassle; the law is giving you a hassle. They are required to give the insurance and 401K money to whomever was named as the beneficiary, whether they want to do so or not, even if that means that the money is on hold because the beneficiary is a minor. They are prohibited from giving the money to you, even if they want to give it to you. They have absolutely no discretion in the matter. The only way to change the law is to have the government change the law. The insurance company cannot change the law.

14. QUESTION:
    We cashed out on 401k early, how does that affect my taxes?
    I need to file my taxes. We cashed out on 401k in 2010. The amount we got on our check was 2 from 401k. Was the penalty fee for early withdraw already taken out from that total amount? I dont remember what the grand total amount was before we recv check. Also, do we have to pay 10% more on our taxes? Should’t this 2 amount count as income as well?

    • ANSWER:
      You will get a 1099 that shows the distribution and the taxes withheld. Use that for computing your taxes.

15. QUESTION:
    I asked HR if the knew if the company plans to match 401K in 2010 – They told me they don’t know?
    They told me that the decision hasn’t been made yet and most likely won’t be made until the end of 2010 – Is this right? I currently don’t contribute because they didn’t match in 2009 and I rather get the tax benefits of a ROTH IRA then a Traditional 401K UNLESS they match… Is that right that they can do that….?????????
    I’m not complaining that they won’t match… I’m complaining that they won;t know until the end of the year…. I want to know before I contribute…

    • ANSWER:
      A company has a choice to match or not match.
      And they don’t have to decide to match until the year is over – this treats it more like a profit sharing match.

      you are allowed to invest in both a ROTH and a traditional 401K.
      also a ROTH has a max investment of 00 (i think). The 2010 401k investment will be close to 000.
      - If i was you, I would split the amount that you planned to invest between the two system so you can have the “best of both worlds” and you don’t miss out on the match if there is one.

16. QUESTION:
    I did not work in 2010 and took money out of my 401k to survive.?
    Do i still have to pay all penalties and interest or is there a writeoff here possibly due to hardship?

    • ANSWER:
      The withdrawal is taxable income plus 10% penalty if you are under age 59 1/2. There is no “writeoff.” Whether you’ll owe tax depends on your filing status and how much your total income was. The custodian should have sent you a 1099-R.

17. QUESTION:
    I’m a single filer who has contributed ,000 to a Roth IRA and ,500 to an employer sponsored 401k in 2010.?
    I’m a single filer who has contributed ,000 to a Roth IRA and ,500 to an employer sponsored 401k in 2010. My salary will be 45K in 2010. Does anybody know if I’ve surpassed any contribution limits? Also, can I rollover that ,500 into a rollover IRA when I leave my present employer this calendar year? If so, can I roll it over into a Roth IRA with exceeding any limits?
    Thanks!

    • ANSWER:
      You’re fine. I made the exact same contributions.

      You can roll your 401k into a Traditional IRA without paying taxes. If you roll it into a Roth IRA, you will have pay ordinary income taxes on the balance as of the date of the roll over.

      Rollovers do not count towards annual contribution limits.

18. QUESTION:
    Can I convert a non deductible IRA that has after tax 401K funds into a Roth in 2010 when income limits expire?

    • ANSWER:
      Dear Bobby: Great question, not many people have thought that far ahead. Why not? Look at IRS Pub 17 page 124 and it makes clear the procedure to follow when you convert a nondeductible IRA to a Roth. Obviously the 0,000 figure is a hurdle now for you and in 2010 that hurdle will be removed. Make sure to retain all documentation related to the origin of the IRA and the tax paid status on the funds. Remember you can keep that Roth going even after you reach age 70 1/2.

      This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more.
      Errol Quinn Enrolled Agent Master Tax Advisor

19. QUESTION:
    401K and Roth IRA contribution limits 2010 ?
    Can i contribute 00 in Roth-IRA and ,500 in 401K in the same year 2010. or should the total of IRA + 401K not exceed 16,500.
    I am a little confused about total limits if I am contributing to both.

    i am 26 years old and i make ,000 annually.

    thanks

    • ANSWER:
      Roth IRA max is 5k
      401k max is 16,500.00.

      Total is 21,500.00.

      If you are 50 or over. which you are not yet. You could add extra 1k for Roth IRA, 5k extra to 401k.

      Total is 27,500.00 for a person is 50 or over.

20. QUESTION:
    When is the limit to contribute to contribute to 401K: 12/31/2010 or another date?
    I never contributed to my 401K before and I would like to start contributing.
    I know the limit for 2010 is ,500 but I would like to know when the limit is to contribute
    this amount for the year 2010. Is it the end of current year 12/31/2010 or a different date such as when I have to file my income taxes (4/15/2011) ?

    Thank you

    • ANSWER:
      12/31/2010 – contributions can only be made in the form of salary deferrals on your part.

      The 4/15 deadline applies to IRAs – not 401(k) plans.

21. QUESTION:
    Can I claim any current losses as I rollover a 401K to a Trad IRA in 2009, and into a Roth in 2010?
    So let’s say I have a cost basis of 0K in my 401K now worth K. In addition I have K in cost basis in a non-deductible traditional IRA now worth K. I’d like to rollover my 401K to an IRA now, giving me K of assets in an IRA. And in 2010, I’d like to move it all into a Roth IRA.

    I figure I’d need to pay income tax on 0K (pre-tax 401K earnings) in 2010, but would there be a reduction on this due to the 40K of losses? So pay income taxes on only K? In addition, could the K of losses in my non-deductible IRA further reduce this taxable amount to K?

    In general, how would this whole thing work?

    • ANSWER:
      Generally, you can not claim a capital gains loss on your retirement accounts that already are receiving favorable tax treatment. The only time you would have a loss is when you receive a distribution that had previously been taxed.

      http://www.irs.gov/newsroom/article/0,,id=201872,00.html

      http://www.irs.gov/pub/irs-pdf/p575.pdf

      Christine EA Master Tax Advisor

      This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

      http://www.hrblock.com/tax_professionals/christine_wilkins.html

22. QUESTION:
    I cashed out my 401k in Jan of 2010. Can I open a Roth IRA to avoid the taxes and penalties?

    • ANSWER:
      Nope………….when you cashed out !0% would be deducted for tax’s……….the rest is earned income and will need to be reported to the IRS this April………if you over 59.5 the 10% will be waved…….but the rest is earned income…………..BIG hit…………..sorry………..

23. QUESTION:
    I have no income for 2010 my son a minor recieved a 1099R for the 401k of my mother who has passed can i claim?
    Can I claim that as income and file taxes for the year 2010 along with my two children

    • ANSWER:

24. QUESTION:
    I live in RI since 2010. I took a 401K withdrawal in 2010 but earned these funds when I lived in MA.?
    Will I claim this income in RI or MA? A CPA told me that the income was earned in MA not RI. Does this seem correct? There doesn’t seem to be a RI form to allow this adjustment.

    • ANSWER:

25. QUESTION:
    I prematurely cashed my 401k and stocks in 2010, do i need anything besides my W2s for taxes?
    I cashed out my 401k and company stocks last year, now its time to do taxes. My W2 is available and Id like to do my taxes online but Im not sure if Im suppose to include anything from my 401k , the monies I got from that or if I can go ahead and file my taxes? Should I be waiting on some other form other than my W2s?

    This is what my Tax Data says on the form: Gross Distribution-,835.45 Taxable Amount-,337.00, Ordinary Income-,337.00, Unrealized Appreciation-,486.45, Federal tax With held- ,867.40 Other Deductions-,682.36 Distribution Category- 1- Premature….does anyone know what this means? Do i count any of this as income for 2010 or federal taxes with held? or can i just go ahead and file my taxes without worrying about any of this?

    thanks!!
    my income for 2010 was barely 10.0 I stopped working in February 2010 due to medical reasons, I cashed my stocks n 401k out in September of 2010. No federal income tax was withheld for the time I worked in 2010, only federal taxes with held was the ,867.00 from my stocks n 401k. I guess i should be waiting on a 1099R form? does anyone know when these are mailed out?

    • ANSWER:
      You report everything.

      Wait for the 1099-R if the cash out was from the 401K. If you took stock and later sold it, wait for the 1099-B as well.

26. QUESTION:
    can you deposit money into your 401K after jan.1, 2010 to lower your taxable gross income.?

    for the year 2009

    • ANSWER:
      401K contributions must be deducted from your gross pay prior to Jan 1, 2010 to apply to 2009.

27. QUESTION:
    WHERE DO I REPORT A 401K WITHDRAWL ON MY 2010 TAX RETURN?

    • ANSWER:

28. QUESTION:
    401k tax question 2010?
    Ok so i have a 401k and im pretty sure that my social and medicare wages are my normal wages plus my 401k so what if i have a loan out on my 401 im paying back does that show up on tax’s is that a 403b?
    how do u declare hardship on ur taxes
    ok i get it now thank u sooooooooooo much

    • ANSWER:
      401K loan does not get reported to your taxes.
      It’s a loan that has to be repaid – not income.
      It it were a hardship withdrawl – then yes, you will have to decleare it.
      ——–
      You don’t declare harship on your taxes.
      A 401K hardship distribution:
      Is when you go to your employer and take out the money out of the 401K instead of making a loan.
      When you take a hardship distribution – it’s not a loan – but income and you have to pay taxes on it.
      I hope I made sense – if not keep asking.
      Two different things.
      401K hardship distribution
      401 K hardship LOAN.
      If you are paying this money back its a loan – you don’t declare it in your taxes…

29. QUESTION:
    Borrowing from 401K (Claiming in 2010 or 2011)?
    Do we need to claim our 401K withdrawal from this year or can we push this back to 2011 claiming year?
    This is a hardship withdrawal not a loan

    • ANSWER:
      If made in 2010, as a qualifying hardship withdrawal, you will pay taxes in 2010 (but no penalty).

30. QUESTION:
    I heard on Laura Ingraham that the Obama administration plans on taxing 401k savings/retirement funds in 2010?
    True or False if true anyone has that legislation proposal link?

    • ANSWER:
      False. The Obama administration does have a proposed change for 401-ks, but it’s about expanding the program, not eliminating it. They want to require employers who don’t have a 401-k to enroll their employees into direct-deposit IRAs. Employees can opt out of 401-ks or the
      IRAs (Currently they have to opt-in.) http://www.csmonitor.com/USA/2010/0125/Obama-s-plan-to-help-the-middle-class-how-it-might-affect-you

      Some conservative voices are calling this a “nationalization” of the retirement system. But there already is a national retirement system (it’s called social security.)

      In 2008,（pre-election) when the financial system was collapsing, the chairman of the House Ways and Means Committee did propose replacing the 401-k system with a federal retirement system. Both McCain and Obama spoke out against this proposal, and in fact both proposed expanding the system (in different ways.) The proposal is currently dead (nobody drafted any legislation.)

      Many conservatives support expanding the 401-k system and the automatic IRA (with opt-out). The Heritage Foundation and the Christian Science Monitor support it. Some of the opposition seems to be for political purposes (avoid giving the Democrats any wins prior to mid-term elections.)

31. QUESTION:
    My 401k company match has been canceled till 2010. 15%/check now. Should I increase or open up a Roth?
    I currently contribute 15% per pay period. Should I contribute more to compensate, or cancel contributions and direct it toward a Roth IRA

    • ANSWER:

32. QUESTION:
    Can I put money in 401K this Dec 2009 and withdraw Jan 2010 so that income falls on next tax year?
    I am 60 years old and lost my job in October. I had some severance pay. I am thinking about depositing severance in my 401k in December and withdrawing it in Jan 2010. That way this amount will count towards 2010 income tax. My tax bracket for 2010 is likely to be lower. Will this work?
    I missed the fact 401K is employer specific. I do have a SEP-IRA and I may be able to start an (non-sep) IRA. Can someone please direct me to a place where I can read about how I can do these?

    • ANSWER:
      I doubt you will be allowed to put any money into the 401K. After all, you don’t work there anymore.

      You might be able to put 00 into an IRA.

33. QUESTION:
    What’s the difference between withdrawing your 401k and taking a loan from your 401k?
    Is it possible to take a loan from your 401k with out having to pay taxes on it till 2010 taxes.

    • ANSWER:
      If you take out a loan you will not owe taxes now. If you pay back the loan you will never owe taxes on the transaction.

      If you do not pay it back you will probably owe taxes but not always and not until later.

      However, you should talk to the administrator of your 401k plan before you spend more time contemplating your decision. Your options are going to vary dependent on the rules set up by your plan. And if the money is from a previous employee it unlikely a loan will be an option. Also know that what you need the money for can affect both the tax penalties as well as what your plan options are.

34. QUESTION:
    Why does Suze Orman say to put your 401k rollover from previous employer in traditional IRA?
    Suze Orman gives advice that people should rollover your previous employment 401k into traditional IRA. Then she says that in 2010 to move this traditional IRA money to a Roth IRA.

    Several Questions:
    1. What is a “traditional” IRA?
    2. What is the logic/benefit to move it to a Roth IRA in 2010?
    3. Won’t it get taxed once it is moved to Roth IRA? If not, why not?

    • ANSWER:
      1. A traditional IRA is a tax-deferred account. You can contribute up to ,000 per year and reduce your taxable income. In other words, you pay no taxes on the contribution, but it grows tax-free until you withdraw it (at which it is taxed as ordinary income)

      2. Some think that our tax rates must go up since they are currently at historic lows. So pay a low tax now and then no taxes later (Roth). So, Bush’s tax cuts go away in 2010 so our taxes will go up in 2011 when Congress doesn’t renew them. Plus, in 2010, even high income people not normally eligible for a Roth will be able to convert.

      3. It will be taxed when you move it over. But you will never have to pay taxes on that money again!

      Note: you should not do this if you are close to retirement and have a large percentage of employer stock in your 401k.

35. QUESTION:
    Is it better to pay more towards a mortage or invest additional in 401K plan?
    I have a mortage with a 5.25% arm that is adjustable in 2010. I am also investing in my employer’s 401K plan but only need to invest 6% to get the total match. I am currently investing 12% because I don’t have much in the way of retirement. Would it be better to throw that additional cash at the principle of the mortgage each month rather than in a 401K?

    • ANSWER:
      First off, I would definately invest as much as possible in the 401k that the employer matches, that is an automatic 100% return. As far as the mortgage, if you are planning on living in the home longer than 2010, you should put the most possible toward the mortgage after the 401k match or consider switching to a fixed mortgage before the adjustable rate gets very high.

36. QUESTION:
    can I move my 401k to a Roth IRA in 2010 if not what is my best option so I won’t continue losing it to the st?

    • ANSWER:

37. QUESTION:
    Can I convert a 401k to a traditional IRA?
    I have a 401k that I contribute too that was opened with an previous employer. My new employer does not match my contributions. Can I convert this to a Traditional IRA and then in 2010 convert to a Roth and grow tax free.

    • ANSWER:
      Yes you can make the conversion from a 401k to a tradional IRA. And you can convert a traditional IRA to a Roth IRA at any time. You do not need to convert the whole thing at once. You can covert a little each year so as not to bump yourself into a higher tax bracket.

38. QUESTION:
    Anyone else here going to stop contrbuting to your 401K in January?
    January is when my husband’s company renews the paperwork for 401K contributions and only then can you change or end your contributions.

    We have decided to not contribute this next year since we’ve lost 1/3 of his contributions to date and then re-evaluate fiscal 2010 in October or November ’09.

    What will you do?

    • ANSWER:
      Keep buying. Now’s the time to buy, more so than when it’s up. It will go up eventually, and you’ll have bought the shares at a low price.

39. QUESTION:
    If my 401K balance and not yet vested, what happens when I leave my company?
    I have a Fidelity 401K balance from my old company that has not vested. I started a new job in Feb, 2010. When I log into my Fidelity account, it now shows my 401K from my old company and my new company. What will happen to the 401K balance from my old company? Will is ever vest (i.e. will it even be technically mine to use for retirement)? What will happen to it and when?

    • ANSWER:
      You will only be able to keep the money from the old 401k that you have vested in. All of the money that you put into the account, is yours, as is the growth on the account, but the company match which has not yet vested will be removed from the account. Companies use vesting plans as an incentive to keep their employees. If you work for the company all the way through the vesting period then you would have access to all of the company match.

      So basically the money you put in and the company match portion that you already vested in, is yours, and yes it will be available for your retirement. The company match that was not vested will be removed from the account, and will never become yours (as you are no longer with the company).

      If you leave the money in the old company’s 401k plan, it will basically just sit there (unless you move it), and perform based on whatever investments you chose. I would recommend rolling the old 401k money into an IRA. That way, you can personally manage the account without having to be involved at all with the old company. You don’t have to roll it over, but many people do as a way to maintain the accounts without the old company’s involvement.

40. QUESTION:
    I have been putting in 500 a year into my 401k. How much total could I contribute into Roth IRA besides?
    traditional 401k limit of 500 for 2009 & 2010.

    It’s confusing. Some websites say 00 in addition to the 500, some say 500 includes the 00. Could you clarify please. Thank you.

    • ANSWER:
      Your fine with the 401K. ,500 is the max. It is not an IRA or a ROTH IRA.

      In addition, You can put in 00 total combined under age 50, into ROTH and traditional IRA. And if you are 50+ then the limit is 00 combined. But for my money, forget the traditional, and just use the ROTH because you will never be taxed on the earnings and withdrawals.

41. QUESTION:
    Can a 401k from my former employer be rolled into both my new employer’s 401K and a traditional IRA?
    There seem to tax benefits in 2010 for putting money into a traditional IRA that I can later roll into a roth IRA. So, can I take the 401K that I have with a former employer and roll it into both a 401K with my new employer, and deduct 4,000 of that to put into a traditional IRA? Thanks so much for your help!!
    Sorry, to clarify….can I roll over into both of them? Like most of the money into a 401K and some of the money into the traditional IRA?

    • ANSWER:
      As long as your new employer allows roll-overs into their 401k it should be OK. I would recommend rolling the whole thing into a traditional IRA though. It gives you much more control over how to invest it.

42. QUESTION:
    tax question about pulling my 401k out at the end of 2010 to buy a house but didn’t close on house till 2011?
    i had pulled out my 401k in october to pay some old hospital bills off and credit card debit so i could buy a house. i recently moved to a new state so i had sale my old house and was renting an apartment so i decided to pull my 401k from my last employee out and pay off all my credit card bills and doctor bills. then with the money we had left we would have enough money for the down payment of the house and closing cost. we didn’t close on the house until last week witch is now 2011. is their a way i can claim i used my 401k for the house so im not hit so hard for the taxes.

    • ANSWER:
      When you closed on the house is irrelevant. Any withdrawal from the 401(k) is taxable income regardless of what you do with the money.

43. QUESTION:
    Is the department of labor now trying to tax my 401K plan?
    The Department of Labor and the Department of the Treasury (the “Agencies”)
    are currently reviewing the rules under the Employee Retirement Income Security Act (ERISA)
    and the plan qualification rules under the Internal Revenue Code (Code) to determine whether,
    and, if so, how, the Agencies could or should enhance, by regulation or otherwise, the retirement
    security of participants in employer-sponsored retirement plans and in individual retirement
    arrangements (IRAs) by facilitating access to, and use of, lifetime income or other arrangements
    designed to provide a lifetime stream of income after retirement. The purpose of this request for
    information is to solicit views, suggestions and comments from plan participants, employers and
    other plan sponsors, plan service providers, and members of the financial community, as well as
    the general public, on this important issue.

    http://www.zerohedge.com/sites/default/files/2010-02028_PI.pdf

    Hey Dbags in the Dept of Labor, what happens if I want a lump sum from my 401K? You going to regulate that as well?

    • ANSWER:
      Yes they are in their attempt to redistribute your wealth to pay for their programs and failed policies

44. QUESTION:
    How should I withdraw my 401-k when I retire this year? I bankrupted in 2010 and I am a widow.?
    Retiring this year 2011. 65 year old widow bankrupted in 2010. how should I draw out my 401k?

    • ANSWER:
      You should not “draw it out.” You should do a direct rollover into an IRA.

45. QUESTION:
    How should I allocate my 401K from these Choices 8-2010:?
    DWS Stable Value Trust – Institutional Shares
    PIMCO Total Return Fund – Administrative Class
    DWS LifeCompass 2015 Fund – Class S
    DWS LifeCompass 2020 Fund – Class S
    DWS LifeCompass 2030 Fund – Class S
    DWS LifeCompass 2040 Fund – Class S
    DWS LifeCompass Retirement Fund – Class S
    BlackRock Equity Dividend Fund – Institutional Class
    MFS Value Fund – Class R4
    DWS Growth & Income Fund – Class S
    Janus Twenty Fund – Class T
    Franklin Balance Sheet Investment Fund – Class Adv
    Victory Established Value Fund – Class A
    Federated Mid-Cap Index Fund
    DWS Stock Index Trust
    DWS Dreman Small Cap Value Fund – Class S
    Oppenheimer Main Street Small Cap Fund – Class Y
    Invesco Van Kampen Small Cap Growth Fund – Class Y
    DWS Global Thematic Fund – Class S

    Thanks!!!

    • ANSWER:
      I like:
      BlackRock Equity Dividend Fund – Institutional Class
      DWS Stable Value Trust – Institutional Shares

      The markest will be messy for a couple of years – stay safe.
      /

46. QUESTION:
    Will Your 401k be Worth More or Less on Dec 31, 2010?
    Up or down over the next year?

    • ANSWER:
      I made really wise choices this past year despite the bad economy so mine has actually gone up

47. QUESTION:
    my employer is keeping my 401k until the end of the year, i was terminated…can i get it sooner?
    I was terminated in Feb/2010, can I get my 401K before Dec/2010?

    • ANSWER:

48. QUESTION:
    i am doing my taxes for 2010. i took out a withdraw from my 401k, taxes were taken out.?
    my question is do i also need to take out the 10% penalty myself.? my gross taxable amount is 39.00 , what would be 10% of this be? also, do i put this figure on line 30 in the adjusted gross income section? also, do i need to file additional forms for this or do i just turn in the form-1099-r that i received? thank you for any help you can give me.
    this was a distribution. and yes taxes were taken out.
    this was not a loan.

    • ANSWER:

49. QUESTION:
    401K payout before completing full year?
    I have resigned from my company recently. My company pays my 401K on a yearly basis. I received the 2010 payout this February. Since I am leaving before Dec 31, is the employer still legally required to pay my 401K for a partial year? So from Jan-July?

    • ANSWER:

50. QUESTION:
    How long should it take to receive my 401k check?
    I live in Las Vegas, Nevada. I Filled out the paperwork and sent this back to the case manager who received it on October 4, 2010. We are now in mid Nov. and I have not heard anything yet. I do not talk to her because we had issues when i lef the company so I have to send her letters. Should I send her a letter requesting status?

    • ANSWER:
      It usually takes several weeks to complete the process of cashing out a 401(k) account..

      If you are requesting a rollover to another 401K or a IRA, it may take up to 8-12 weeks.

      You should hear something before the end of the year. Just be patient, it will happen, unless you made mistakes in the form ( which is unlikely ).