Online 401k

Frequently Asked Questions

1. QUESTION:
   What is the easiest online solution for my employees to pick their healthcare & 401k in California?
   What online one-stop resources allow them to pick dental, medical, HSA, and possibly their 401k? We already use a service but need to know if there is a better one that has it all.

   • ANSWER:
     You need to talk to your agent. (I’m an agent in Texas). A lot of it will depend on the size of your company (in insurance “speak”, that’s the number of employees).

     And you are going to love this, but I deal primarily in the under 50 market and the best and free way to go is with AFLAC or Colonial. If you let them sell their products, then they will set this up for you.

2. QUESTION:
   Where can I get my 401k current statements online?
   I’m going to move to an apartment, but I lost the 401k papers. Where can I print them out on here?

   • ANSWER:
     You will have to contact your HR department for that information. No one here on Yahoo can tell you this.

3. QUESTION:
   Where online can a person find a reliable website that compares 401K’s or IRA’s?
   Are there any websites online that compare 401K’s and IRA’s? Also do they do direct deposit or not? or do you have to the min amount of money to open up a 401K or IRA with them? Who is the best and worst companies(who people should avoid and why) with 401K’s and IRA’s?

   Serious answers only please!!

   Thank You.

   • ANSWER:

4. QUESTION:
   Where online can a person find a reliable website that compares 401K’s or IRA’s?
   Are there any websites online that compare 401K’s and IRA’s? Also do they do direct deposit or not? or do you have to the min amount of money to open up a 401K or IRA with them? Who is the best and worst companies(who people should avoid and why) with 401K’s and IRA’s?

   Serious answers only please!!

   Thank You.

   • ANSWER:
     The URL listed is about the only one I know of.
     401K’s you are stuck with what your employer provides. If you are an employer please shop around for a plan that is good for your employees. I really appreciate my employers 401K plan. Some one did a lot of research and is providing us with a good plan.
     To start an IRA I think I might get with a mutual fund company like Gabelli or Janus. They are much better to deal with when you are getting started. When you have 50-100k Vanguard and Fidelity have some very attractive options.

5. QUESTION:
   Can you check online to see your 401k balance?
   My uncle asked me if there’s a website he can check it out at. He said he started paying for it in the 90′s. Maybe the irs website? Anyway is there like a government website to check it out at?

   • ANSWER:
     If your uncle knows which brokerage company is holding his 401K, he can log into their website (e.g. Fidelity, Vanguard, Charles Schwab, etc.) If he doesn’t remember the brokerage company, contact the human resources dept at his old company who issued that 401K.

6. QUESTION:
   I filed my taxes online,realized I put the wrong income in and didnt my 401k in there. Will Irs correct?
   .
   The refund amount has changed by 1300 dollars to my advantage. I am so mad because I was in such a hurry to get the refund. Now I might have to wait until June to get it. Wow, was this a learning lesson! Next year I will go to H&R block and have a professional do it for me.

   • ANSWER:
     You need to amend your tax return by filing Form 1040X. The IRS won’t necessarily correct it for you.

     You learned an important lesson. Being cheap can be expensive.

     I hope this helps.
     Gary

7. QUESTION:
   Is the “personal rate of return” that is listed in my account summary at 401k.com accurate?
   I was looking at my online 401k stament and was wondering about the validity of the “personal rate of return” for my 401k account. For the YTD it says my rate of return was 12.7%.

   • ANSWER:
     It all depends on the EXPENSES YOU PAY in your 401K. Those expenses are not apparent unless you do a lot of digging on most 401K’s. So you don’t really know what they are since they don’t make it easy to find. So those returns may be higher in some one Else’s 401K given the same funds–depending upon how well your company purchased those funds. (expenses charged)
     Most of your funds can be found in your local paper and you can compare those results to your results.

8. QUESTION:
   My dad wants to take out some money from his 401k, is it possible to do this online?
   hes gotten frustrated doing it over the phone, and he is not very internet saavy, he is 53 and he wants to take out around 4,000 dollars, he has Prudential and i was wondering if i could help him do this easier through their website, if so what do i have to do?

   • ANSWER:
     You may call by phone or do it on line. The answer is yes but it depends on the institution’s policies. Advice: Call the toll free number and talk with an account service rep for his/her advice as to the fastest way.

9. QUESTION:
   Am trying to find the web site that is online where I can check my 401K performance with Nationalcity Bank?
   I have an ID and password but have lost the web site address?

   • ANSWER:
     It’s called Planworks

     http://www.nationalcity.com/corporate/onlineservices/InstAssetMgmt/PlanWorks/default.asp

10. QUESTION:
    I use TaxAct online and can’t find out where to put in the 401K part?
    I do not think the 401K stuff is the same as an IRA, so does anyone have a clue as where it gets put in.

    • ANSWER:
      Your 401K is not taxed until you take it out and use it. So you don’t have to report it because it isn’t considered part of your income.

11. QUESTION:
    Does it make sense to invest in an online broker for long term investments if I already an a 401K(no emp mtch)?
    For a long term investment should I just continue putting $ into 401k (no contributions form employer) or does it make any sense to open an on line accout with a discount broker?

    • ANSWER:
      I do both. 401K money can’t be touched until you’re 59 1/2 unless you get penalized and taxed. Use your online broker for money you can use before 59 1/2.

12. QUESTION:
    Why does my 401k cash out have to be done my mail and not online?

    • ANSWER:
      401k have strict policies that they have to go by and one of the them is to get signatures!!!

13. QUESTION:
    What are te differences between 401k contributions?
    I am 26 and am trying to start contributing more towards my 401k now. I went online to change my contribution amount, now at 10% Pre Tax, and noticed that there are two other options to contribute to. One is “Post 86 After Tax” and the other “Post Limit After Tax”. Should I contribute a percentage towards the options? What are they?

    • ANSWER:
      Call the plan custodian’s customer service function and ask.

14. QUESTION:
    I haven’t recieved my 1099 r for closing out my 401k. Is there a way I can find it online ?
    by using the federal identification number or the account number?

    • ANSWER:

15. QUESTION:
    if i wanted to borrow money from my 401k how would i do it and is there a application online?
    my plan is with harrahs ent. inc

    • ANSWER:
      The first place to start is with your Human Resources department. They should have the forms and paperwork required to complete the loan. Whether or not this can be completed online depends completely on who Harrahs uses to administer your 401k plan. Be aware that many 401k providers often impose a nominal fee (0 or so) for processing the loan paperwork. Also be aware that many 401k providers restrict your eligibility to make additional contributions to your 401k after you take the loan. The last thing to consider is your other options to obtain funds–it is generally not advisable to borrow from your 401k (although there are some situations where it makes sense. Good luck.

16. QUESTION:
    I haven’t received my 1099-R, how can I access it online? I have a Fidelity 401k.?

    • ANSWER:
      Fidelity sent a notice to some of its clients that stated the 1099′s would be sent at the end of Feb – our arrived on the last day – call them if it’s not there by Monday

17. QUESTION:
    Which online broker do you recommend for index funds and stocks? I’m new to investing…have a 401k already
    I’m just starting out.. and I’m 27… if that helps…
    I was thinking vanguard.. any other brokers?

    • ANSWER:
      Forex trading profits!SPEND FOR GETTING AFTER 3 DAYS.Minimum Maximum 00

      http://2015894.e-gold.com

18. QUESTION:
    How long can my employer hold funds designated for my 401K each pay period?
    I work in a small office with approximately 10 employees. My employer seems to deposit funds into my 401k at random intervals instead of each pay period when the funds are withheld from my check. Last time it was over 9 weeks after and this time it’s going on 6 weeks. I just checked online and the deposit still hasn’t been made to my account. Where can I find out the guidelines for this?

    • ANSWER:
      Amanda almost has it right. The rule is that you have until 15 days following the end of the month in which the money was withheld OR as soon as administratively possible. For a small firm with only one office they tend to lean towards 5 days. After all..it’s not that hard to determine how much to deposit is it? 10 people shouldn’t take more than a day to do.

      HOWEVER…(there’s always a however isn’t there?). The money doesn’t have to be deposited into YOUR account in that time period. It only has to be segregated from the assets of the employer. This means your boss simply has to move it from the company’s checking account into one with the tax id of the trust.

      So, before you go complaining about this I would a) check to see if there is one of these accounts and if he’s using it and b) decide if you really want this job. If you begin complaining about this it tends to irritate them. Especially if you complain to the Department of Labor (the entity that has jurisdiction). Worse thing you could do would be to go to the DOL and then find out that he was using a checking account and it was legit…

19. QUESTION:
    Where do I go online to do my taxes for free?
    I’m single, I live at home but I’m 23 and independent of my family. I want to file my taxes online, they are really simple I’m not in school I have 2 tax forms from 2 different jobs and no 401k or anything complicated. Very easy. I want to know where I can go online to do my state and federal for free. Does anyone know? I’d appreciate the impute. Thanks so much.

    • ANSWER:
      yup what she said turbo tax. sorry for witing this but how you doing. i still have your wmail and havent heard from you in awhile. hope your doing good

20. QUESTION:
    Is there 401K Penalty Tax Relief in the American Recovery and Reinvestment Act?
    I’ve searched online but can’t find the details for the Stimulus. Is the 10% penalty being waved for 2008 Federal Tax Filing if I withdrew from my 401K in 2008?

    • ANSWER:
      It is not being waived for 2008. Have not heard if it’s going to be waived for 2009.

21. QUESTION:
    What is the best online site for buying stocks?
    I am looking to increase my investment portfolio beyond a 401k, and buy some stocks. Looking for a low initial investment and low fees. What is the best online trader?

    • ANSWER:
      TDAmeritrade is the best hands down. No nickle and dime fees, just flat trades. Beware of sites that have lower trading fees, they will get you with fees like maitenence fees, dues, quarterly administrative charges.

      Stick with TDAmeritrade and you will be just fine.

22. QUESTION:
    What’s the best online stock broker for small investments?
    I’m a young professional, with a healthy 401k, and a bit of disposable cash. It seems the stock market is hot for people willing to take some risks. What’s the best online stock broker for someone looking to buy stocks with a total of less them 00 to invest?

    • ANSWER:
      Scottrade …mainly because they provide the same services, charges and research tools to every account small or large.Their tools seem to be the choice of day-traders I correspond with….so they must be good AND up to the minute.

23. QUESTION:
    What line does taxes withheld for a 401K distribution go?
    Hi,
    I read online to put the taxes on line 64 but that is Earned Income Credit. That seems weird to me.

    I am referring to the 20% withheld from a 401K Distribution rollover for Form 1040

    • ANSWER:
      The total amount of the distribution goes on lines 15a and 15b. The 20% federal income tax withheld from your distribution will be reported with all other taxes withheld from forms W-2 and will appear on line 62.

24. QUESTION:
    I want to sign up online to access my 401K info, but I have to enter my s.s.# and birth date. Is that safe?
    Can someone hack the site or intercept the info and steal my info? The co. says the site is secure. Also, is it ok to do it at work, where my computer can be accessed remotely by the IT dept. anytime, but probably isn’t? Or is it better to do it at home? Thanks.
    Thank you. Just to clarify, I’m talking about the web site of the company where my 401K is (a major investment co.); you have to enter that sensitive info online to have access to your portfolio online…

    • ANSWER:

25. QUESTION:
    I live in Wisconsin how do I borrow from my 401k?
    I would like to know where I go to borrow against my 401k! And how long does it take to get the money? And can you do it online? Where do I go to do it?

    • ANSWER:
      The only place you get a loan against your 401(k) is from your employer. Talk to your HR department and/or plan administrator to find out if they allow loans, and if so, what the terms are.

26. QUESTION:
    How do I calculate earned interest for each month for a 401k retirement plan?
    This is for a project for my Economics class, and I’ve used as many resources as I can to find this… and I’m stuck.

    The hypothetical situation below explains what I’m supposed to do:

    After initially picking a 401k plan (upon research I chose a Bond Mutual Fund for this), I’m supposed to “keep track of my earned interest for my mutual fund” per month.

    My monthly income is 00 and I plan to contribute 8% of that to the 401k, which would be 0/month.

    How do I figure out the earned interest per month? I have no idea what the interest rate is or how to find that. I’ve researched online and got 5.25%, in which I have no idea is correct.

    Thanks in advance for any help you can provide.

    • ANSWER:
      It appears that rather than projecting future gains what is being asked for is the previous month’s gain. Thus, on the first day you deposit 0. One month later, before you make your next deposit, you calculate your gain for that month.

      Example:
      Start of month 0
      End of month value 1

      Gain (earned interest):
      1-0 =

      Rate of Return:

      /0 = 0.005 per month
      0.005 x 12 = .06 (6%) on a yearly basis.
      ____________

      Next month the starting value is 1 (Last month’s ending value (1) plus your contribution (0)).

      Do this for each month. The result for each month will likely be different and some months may even show a loss.

      Realistic results might look like this:

      Month #: 1 , 2 , 3 , 4 , 5 , 6
      Interest %: 6 , 4.3 , 11 , -9.2 , 0.2 , 4.3

27. QUESTION:
    Can I use 401k Hardship Withdrawal if I have money in the bank?
    I would like to buy a house, say for 100K. I want to put 20% down and I do have 20K in my checking account. But I would rather take 26K (20K minus tax and penalties) out of my 401K even if I can afford it.

    JPMorgan and IRS say I can take out (Not borrow, you don’t have to pay it back) money out of my 401K under the “Hardship Withdrawal” for the downpayment only. Will I qualify since I could afford the 20K downpayment with my checking account? In other words, must I legally pay off my downpayment with my cash at hand before dipping into my 401k?

    I can’t find any of these details online. I already know all the pitfalls of a Hardship Withdrawal versus loans etc.
    Great answer Ryan M. You mention a 10% penalty off the bat…where does that come from? I called JPMorgan and they said there is no penalty under my plan. Just taxes

    • ANSWER:
      A hardship withdraw has nothing to do with outside moneys. JPMorgan will have no way to find out if you have money inside your banking account. However, I would try not to take a hardship out of your 401K unless you ABSOLULTY need the money to put down on the house. You will lose 10% right off the top, and then have to pay standard income on the moneys. Also, when taking out 26K or 32500 (you are allowed to gross up the amount by 25% and withhold 20% to cover some of your taxes) you might be raising your tax bracket, and you might owe even more tax. I would talk to a CPA before taking out any money, but just remember this should be a last resort. You don’t want to hinder you retirement goals.

      *****More information ****

      The 10% is a penalty that is from the IRS if you are under 59 ½ years old. This is true for all qualified plans (meaning tax differed). The only way around the 10% would be “IF” the money was in a traditional IRA (Individual Retirement Account) and this would be your first home that you are buying. The IRS will allow the 10% to be waved for the fist 10,000 that is taken out for first time home buyers. If JP Morgan will allow you to roll the moneys into a traditional IRA while in-service, you might be able to get around the 10%, but most, if not all, 401K plans will not allow you to just rollover funds until you leave the company, or 59 ½ (or) 691/2 years if age while in-service. (depending on the plan rules)

      You might have just talked to someone in the call center that is either not licensed, or doesn’t know what they are doing. When it comes to the IRS, you should always listen to a tax advisor and not someone at the company where the funds are held. I hope that cleared it up a little for you. Best of luck with the new house.

28. QUESTION:
    When you have to pay a penalty for 401K early withdraw, how do you pay this? Are you billed by the IRS?
    I just did my taxes online and I took an early withdrawl on my 401K last year. I know I have to pay taxes and that shows on my return, but will they bill me the penalty fee or how does that work?

    • ANSWER:

29. QUESTION:
    is there a 401k contribution worksheet for plan administrators to help manage plan?
    We now offer 401k and I’m the lucky person who gets to manage the plan. I have set up my employee’s 401k deductions successfully in QuickBooks but now wonder how to calculate the employer’s contribution amount. We match 100% up to the first 3% of an employee’s annual salary and then 50% for deferrals between 3%-5%.

    There has to be an online resource/spreadsheet/SOMETHING to help me easily calculate these amount.

    Thanks

    • ANSWER:
      Quickbooks should also be able to calculate the match. It’s a basic safeharbor matching formula that is based allows for “catchup” matches….but here’s the formula in excel:

      Column A = YTD Compensation as defined in plan document
      Column B = YTD Deferral (401k deductions)
      Column C = YTD Match (formula below)

      =IF(B2/A2<=0.03,(MIN(ROUND(0.0
      3*A2,2),B2)),IF(B2/A2>=0.05,
      ROUND(0.04*A2,2),ROUND(
      ((B2-0.03*A2)*0.5)+(0.03*A2)
      ,2)))

      This all goes in once cell…

      Column D = Prior Match (last pay periods Column C)
      Column E = Current Match (Coulmn D – Column D)

      Just keep a running total and you should be fine.

      keep in mind that if your plan is not a safe harbor plan (100% vested in match immediately) then you don’t want to make the contribution each payroll because you’ll be giving a match to those who may not ultimately be entitled to it (if they leave before end of year). If that’s the case then use the formula above without the Column D and E and calculate the match after the last payperiod.

      btw there is far more to adminstering a plan than calculating a match – there is also discrimination testing, plan tax filings, statement preparation, notice preparation, and document upkeep. If you haven’t already-you may want to consult a TPA and see if they can do this for you at a reasonable rate. Shouldn’t cost more than 00 a year and relieves a lot of headaches.

30. QUESTION:
    Is it more expensive to do a online college or a traditional 4 year college?
    I wont to go to college, but I let my job and martail arts get in the way. I have a really good job with good benefits with 401k. I really wont 2 futher my career. I can’t forget about my martial arts. I rather let my job go befor I let my martial arts go. And that is why I wont to know, Is it more expensive to do a online college or a traditional 4 year college? futhermore, is online college hader then an 4 year traditional college and vic versa?

    • ANSWER:
      Online is not necessarily cheaper. Also, there are good online programs out there, but you have to be very careful about choosing one. Like any program, some are better than others. However, if you don’t have the time or ability to get to a live classroom a few times a week, then I would persue an online degree. Also, if financial aid is an option, then online will work equally as well as traditional courses.

31. QUESTION:
    Can an employer use employee 401k contributions to pay business expenses?
    The money comes out of my check but rarely gets contributed on time. I recently looked online at my account and saw a contribution on jan 19th. Later I found out that the contribution was for the month of november of 06. By law the money is supposed to be in the 401k account 15 business days past the month. Does the employer have access to using employee 401k contributions for business expenses? My coworker was told by the plan administrator that “the money wasn’t there” and “they were doing the best they can” to send the contributions. I am only assuming that this is what had happened (to pay expenses) What are the legal rights in this? Whats the point of having money taken out every week when it doesnt even go in when its supposed to. Would I still get charged the monthly fee if I stop contributing?

    • ANSWER:
      This sounds VERY illegal. Doing their best is a crap excuse. I would definitely look into legal action.

32. QUESTION:
    Is there a credible online source where one can get tips on investing for novices like myself?
    I already have a 401k but was told I could be maximizing my money so much better if changed the mix of my contributions…this is all foreign to me and I would like to educate myself before changing everything up.

    • ANSWER:
      These sites should be helpful:

      401k Tips: http://mutualfunds.about.com/od/retirement/u/401k.htm

      Preventing 401(k) mistakes: http://money.cnn.com/2008/02/04/pf/saving/toptips/index.htm?postversion=2008020411

      Hope this helps and Good Luck to your investment!

      Best regards,
      Chokyi Ooi
      Read more 401k investment related articles @ http://finance.chokyi.com

33. QUESTION:
    My husband is having problems with SSDI, they say he overpaid, we have money in 401k, can they take it?
    We have a hearing next month for an overpayment the SSDI says my husband has and I need to know if the goverment (SSDI) can take our money from the 401k or if they can make us live off our 401k and take our wages? I haven’t been able to find anything online at all about this. Thanks for any help!

    • ANSWER:
      Generally when a government unit decides that they overpaid, they “garnish” any future payments you would be entitled to from them.

      The debt stays with the SS office until he collects again.

      They will not take your 401(k) and it is a long road to even trying to “take our wages”. The worst that will happen is that you will have to set up a payment plan based on your income and your expenses.

      Calm down, I doubt it is as big of a deal as you are making it out to be, especially if the error was their error and you did not commit fraud.

      Good luck.

34. QUESTION:
    where can I find a good retirement calculator online?
    I want a calculator that separates pre-taxed savings accounts like a 401k and after tax accounts like the Roth IRA. Few websites have this.

    • ANSWER:
      An on line calculator will be of minimum value, because there are too many variables. Each individual’s situation is unique. I’ll give you a couple of on-line calculators, but they will be of limited value.
      cgi.money.cnn.com/tools/ retirementplanner/retirementplanner.jsp
      www.aarp.org/work/retirement-planning/ retirement_calculator/
      apps.finra.org/Investor_Information/ Calculators/1/RetirementCalc.aspx

      I suggest that you get two books to help you with retirement planning:
      • Personal Finance For Seniors For Dummies by Eric Tyson and Robert C. Carlson
      • The Complete Idiot’s Guide to Retirement Planning by Jeff Wuorio

      Please don’t be offended by the name of the books. For Dummies and Complete Idiot’s Guide are both publishing companies. They contract with authors who are experts in their field and also have the ability to put concepts into plain English.

35. QUESTION:
    Where to open an online investment account?
    I would like to open an investment account and don’t know where to begin! I have a 401k I need to roll in and also some other funds to invest. I don’t have the time to actively trade stocks, so I’m thinking I would like to put them in a mutual fund? Any suggestions where I should open an account?

    • ANSWER:
      Zecco.com is free.

36. QUESTION:
    what are some stock market sites online i can particpate in?
    im already invested in a 401k program at work, ive also got a ira im investing in. ive read where first time investors try this and it doesnt always work out, but ive been thinking about trying it instead of blowing some of my cash gambling. can you give me some ideas and sites i should check out?

    • ANSWER:
      Open a brokerage account at Zecco and I will help you for FREE. (I am a Portfolio Manager with over a decade of experience in the Stock Markets)

37. QUESTION:
    Any online tools that help you determine how much you really get paid?
    For example, say you get paid a year… how much is that net take home.

    filter for…federal taxes, state taxes, social security, insurance, 401k deduction, etc., based on your locality?

    • ANSWER:
      you net pay you know since it is what you get pay — gross pay is before the starting takin everry thing out!! all the deduction are listed on the check i do not understand the need for online tool!!!

38. QUESTION:
    Company does not match 401k contributions & does not have a Roth401k. What to do?
    What else can I do to improve retirement planning considering my employeer doesn’t offer anything helpful? They offer profitsharing but if you leave prior to seven years you get nothing. I do plan on leaving within the seven years, already in my second year.

    Other Facts:
    - No longer contributing to 401k, but contributing the max Roth IRA limit every year, invested in individual stocks returning 10-18%. Maxing Roth for last six years.
    - Saving 30% every pay period w/direct dep. to online savings acct to build up liquid emergency funds & siphoning excess to Brokerage acct for investing.
    - Contributing approx. 6K/year to Brokerage account invested in no -load index funds returning 8 – 15%. Aggressive growth portfolio.
    - Purchased insurance policy to build up cash value and create something for beneficiaries
    - Age: 32, good health/non-smoker, renter (housing in area runs over 800k), no dependants, no liabilities

    What do you advise in my situation? Thank you for your help.
    Thanks for all the input. To clarify further, I have a EIUL (Equity Indexed Universal Life) policy to create an estate for surviving family members/heirs. It tracks the S&P cap @ 12.5% min 1%; can borrow the cash value built up for my retirement if needed. Re: pre-tax exclusion 401k offers, logic behind not to do so is b/c I’m in a low tax bracket below 60K & salary isn’t expected to exceed single contrib limit. Also contrib to 401k are harder to withdraw compared to a Roth; IMO it’s asinine to pay loan on monies that are mine to begin with. I rather be taxed now w/Roth than later b/c I’m in a low bracket now, 40 years from now I will be in a higher one but I probably won’t have the same investments in a Roth, brokerage or 401k. Even if I did fully contribute to the 401k it doesn’t perform as well as my brokerage & Roth. Perhaps I misunderstand the importance of lowering my present tax bracket re: investing and how a 401k can balance my overall assets. Any further ideas greatly apprec.
    Wanted to get a even million EIUL policy but underwriting couldn’t justify it. Result, 500k EIUL & the basic 110k w/work. Honestly as we all know 600k doesn’t really leave much for surviving family. Although in good health I never take it for granted that I’ll live until the mortality stats i.e. 86-94. Hence the need for the life insurance/protection. Re: the co profit sharing digdown… you raise interest’g points, however the primary reason why I’m not concerned is b/c the percentage is really low if under 4 yrs w/the company. digdown… can you cite any sources for your vesting info u suggest? Thanks.

    Lastly, re: the emerg funds I like to view it as what is the largest check I can write OR what is the largest withdrawal I can make today. In case of an emergency the last thing I want to do is shuffle assets and/or liquidate inorder to obtain a sizable amount of funds in a short amount of time 48 hours or less.

    • ANSWER:
      You are doing the right things. Maxxing your Roth IRA is perfect and I am also in favor of the EIUL because it provides you a vehicle in which your investment portion accumulates tax free and an EIUL also allows you to withdraw monies tax free.

      The problem that most folks don’t appreciate with an IRA or 401K is that the trade off for having your initial investments made with pre-tax dollars cause you to have to pay considerably more in taxes on the eventual withdrawls.

      The best way to visualize this is the case of the farmer. Is it better for the farmer to pay taxes on the purchase of his seed or on the value of his harvest? Everyone has a choice pay tax on the “seed” Roth IRA, EIUL, VUL or pay tax on your “harvest” 401K, IRA, 403B. The larger your “harvest” grows the more taxes you pay. Why do you think the government is pushing 401K and IRA? A good clue is in the fact that you MUST beginning withdrawing from your 401K and IRA when you reach 70.5 whether you need to or not. They want their taxes!

39. QUESTION:
    New 401k plan is based on variable annuities.?
    At my office we recently switched 401k providers to one that invest in variable annuities. Could there be any advantage to this? I have read some of the tax advantages of annuties but they don’t seem to relate to 401k plans. Everything I read online says the fees are higher. Was this a good or bad move?
    We have different mutual funds available through the group annuity.

    • ANSWER:
      Variable annuities have a place in retirement planning but not as a part of a. 401k or IRA. The reason is that gains are not taxable in either a set of plans. Since annuities traditionally have higher costs and usually lower gains (due to investment mix) they are not appropriate as 401/IRA vehicles.

      That said, annuities have changed and have lower fees and commissions that in the past, but still I question the appropriatenesses for a 401 especially if that is your only option

40. QUESTION:
    what do you think of turbo tax for doing taxes online?
    i am able to get the turbo tax freedom deal because i make less than 58k a year. what line do i put my contributions for my 401k? i have been using the same taxman to do my taxes, and yet its not able to be in the budget. does turbo tax do direct deposit for the refund?

    • ANSWER:
      You don’t. Contributions for a 401(k) have already been taken into account on your W-2. Just enter the W-2 data as directed by the program. You can always do direct deposit regardless of how you file.

41. QUESTION:
    HOW to find 401k\?
    how to find my 401k online for pass 5 years

    • ANSWER:
      You contact your former employers for those 5 years and obtain the contact information for the respective plan administrators. Simple as that!!

42. QUESTION:
    401K account from former employer?
    I opened a 401K with my former employer. I was only with the company a short time, but built up savings in that account nontheless. I left the money in the account, thinking I would just roll it over to my new 401K once my benefits kicked in at my new job.
    So today, I logged on to my 401K online account (from my former employer) and balance is now [FAQ-QUESTION]!!
    Does my former emloyer have the right to take that money from me? It’s been 5 months since I’ve worked there, but something just seems fishy to me.
    Any advice is appreciated!

    • ANSWER:
      If the plan investments are limited to only the former employer’s stock, since all of your 401(k) money is in one investment, you run the risk of losing that money if there is a decline in the value of the stock.

      However, employers are required to roll over 401(k) balances between ,000 and ,000 into an IRA for you. So it may be in a different account. Give them a call.

43. QUESTION:
    I received a payout from a 401k and I have a 1099-R?
    How do I file this?

    I have read through some of the forms online and the task seems quite daunting.

    It was a payout of the entire balance, but it was only 0. It had taxes withheld from it also. Do I file Form 4972? And which line should I include it in on the 1040-A?

    Any assistance is much appreciated.

    • ANSWER:
      If you are under age 59-1/2 you’ll owe a 10% penalty on the withdrawal and will have to file a 1040, not a 1040A. The amount withdrawn goes on line 16B, the 10% penalty goes on line 60. Whatever was withheld will add into line 64.

44. QUESTION:
    I would like to get into some day trading, any advice on the best place to start online.?
    I already invest in IRA’s and 401K, but I would like to get into something a little more could you say competitive. I want to get involved in some day trading. I would just like to know the easiest and best way to get started.

    • ANSWER:
      Try the stock trading simulator and great resources at

      http://simulator.investopedia.com/home.aspx

      About.com: ‘Becoming a Day Trader’

      http://daytrading.about.com/cs/education…

      About.com: ‘Day Trading’

      http://daytrading.about.com/#b

      AskMen.com: ‘How To Become A Day Trader’

      http://www.askmen.com/money/investing_10…

      Day Trading World:

      http://www.daytradingworld.com/…

      Daytrader’s Bulletin:

      http://www.daytradersbulletin.com/…

45. QUESTION:
    What is one of the best insurance solutions for medium sized companies?
    I would like for my employees to be able to login to pick their insurance. And possibly even pick their 401k options online. Plus I would like to have this information online.

    • ANSWER:
      yes in order you get a good quote you will have to visit a website like the individual above has stated . . . one good website i have found is http://www.COMPAREusINSURANCE.com and then click on their business link it is only for SMALL Business insurance

46. QUESTION:
    I would like to start an online brokerage account, I only have 2g’s to start with ,which online firm is best?
    I only have 2000 bucks but would like to start investing in stocks, I have mutual funds 401k etc… good credit no debt the whole 9! now onto stocks! which brokerage firm,, was looking at sharetrader but I really dont know?

    • ANSWER:
      Scottrade works just fine for me (http://www.scottrade.com/). I have my IRA in it. Those trades, often trading almost instantly, are really, really nice.

47. QUESTION:
    Does online divorce work without any problems, none contested?
    Been seperated for three years lived with her for one year, getting a divorce and was wondering if online divorce works, before marrage i had a house and a 401k?
    It cost 0.00, for online verses 00.00 for a lawyer

    • ANSWER:
      You have to go by the laws in your state even online. I suggest springing for the extra bucks just to make sure it’s legal and you don’t get your butt in a wringer.

48. QUESTION:
    How much does it cost to efile with turbotax desktop?
    i am trying to see which is the cheepest route for me.i know you get free efile with online verison but it cost .95 for each state,but with desktop it has one free state.then again it doesnt say how much it cost to efile.i have two states to file one has to be done by mail….because of early withdrawl of 401k. input please.

    online-29.95 fed and 32.95 each state/free efile!
    desktop-44.95 fed and one free state/but it says fees apply for efile?

    • ANSWER:
      It cost me exactly .90 to efile both Federal and State Taxes.

49. QUESTION:
    Are you active in deciding where your 401k money goes?
    I’ve been changing my funds around lately and wondered how others did theirs.

    Do you go strictly for the money (i.e. the return), or do you consider the fund and what it supports before you put money into it?

    Do you track it online on a regular basis or do you just wait on the quarterly statement to see how you’re doing?

    Do you even check to see how your money is doing or is it more just of a sign up and hope for the best kind of thing?
    I should clarify:
    I check mine periodically online.
    I do NOT choose funds which are involved in things I don’t agree with.
    I’m only changing things around now because of a change that was made in mine (dropped a few funds, picked up a few new ones).

    I was just curious how others did theirs.

    • ANSWER:
      It is ok to change your funds around, but it is best to have a well diversified portfolio asset allocation wise. No one knows what the future might hold, so a prudent policy is to cover most of the bases. Start by making certain that a portion of your money is invested in foreign funds 30 to 50% spread among different economies. Next, make certain that you have allocated your domestic funds among some small cap funds and large cap funds and fixed income funds. Perhaps even some REITs. Then occassionally (it is suggested once a year) reallocate your funds to rebalance your portfolio. Personally, I think once a year is a little aggressive but certainly a periodic review and rebalance is a prudent strategy.

      There were many unfortunate 401k investors who put all of their funds into technology funds during 1999. They are still feeling the pain and will be for some time to come. Do not let that happen to you.

50. QUESTION:
    I have a 401k with Fidelity but there are many stocks I don’t have access to with Fidelity ?
    What would be the best online website to use to purchase stocks. I’m new to this so I would like something that is cheap and easy!
    As I said I’m looking to buy stocks by myself not thru a mutual fund so I’m not looking at Schwab, I would go with Vanguard if I had my choice thru work but I need info on stock trading websites, I have heard good things about Scottrade..

    • ANSWER:
      All 401s are restricted to a few choices…almost always only mutual funds…. if you want to trade individual stocks or ETFs, you should open another account with Fidelity ( everything together at one website)… open a ROTH IRA if you can put off access to the money ( like the 401)…or open just a ” brokerage” account….
      The ROTH is actually better because there is no paperwork at tax-time ..everything is done inside the account… and all your gains are yours to keep….when the time comes.