I need advice on 401K

[Damondogg]

Well I have been enrolled in the 401K since 1999, since then I'm under $40,000. Would boost my contributions, but I need more take home pay than having so much deducted. Anyways, I understand that the company won't match. So what does that mean exactly? Does that mean that when I retire with whatever amount is in my account, I won't get half of that or what?

As far as an option to rollover to an IRA, I have like close to $5000. Is it wise to move that over? I could just use some honest advice please.

 

[burrheadd]

Huh!!

 

[upschuck]

How much do you have in it 5000 or 40000? Matching is what the company pays up to when you pay into it, e.g. if company matches 3%, then the first 3% each pay period you put in they will match it. All the money in the account is yours.

 

[IVE GOTTA PACKAGE 4U]

You can't roll Your 401k into an IRA until you leave the employer.

 

[tominky]

My advice to you is keep contributing till it hurts!!!I have been retired for 6 years and have $330,000.00 in my IRA after rolling over my UPS 401k and $200,000.00 in an annuity I have from UPS stock.Keep your eye on the prize and keep the faith!!

 

[Damondogg]

How much do you have in it 5000 or 40000? Matching is what the company pays up to when you pay into it, e.g. if company matches 3%, then the first 3% each pay period you put in they will match it. All the money in the account is yours.

About $40000, UPS won't match, so what percentage would I get back?

 

[upschuck]

About $40000, UPS won't match, so what percentage would I get back?

You get back everything you put in plus the earnings once you hit retirement age. If you take it out early, there will be a tax penalty, don't know the amount, but big enough for you not to want to withdrawal any. 401(k) is meant to be a retirement account, not an investment account, which is why you get dinged with the penalty.

 

[upschuck]

Just searched it and it is an extra 10% on top of the taxes you would have to pay upon withdrawal.

http://www.irs.gov/uac/Newsroom/Tax-Rules-on-Early-Withdrawals-from-Retirement-Plans

 

[UpstateNYUPSer(Ret)]

You get back everything you put in plus the earnings once you hit retirement age. If you take it out early, there will be a tax penalty, don't know the amount, but big enough for you not to want to withdrawal any. 401(k) is meant to be a retirement account, not an investment account, which is why you get dinged with the penalty.

10% penalty plus 20% withheld for taxes.

 

[Damondogg]

Just searched it and it is an extra 10% on top of the taxes you would have to pay upon withdrawal.

http://www.irs.gov/uac/Newsroom/Tax-Rules-on-Early-Withdrawals-from-Retirement-Plans

Thank you. I appreciate your help!

 

[Damondogg]

You get back everything you put in plus the earnings once you hit retirement age. If you take it out early, there will be a tax penalty, don't know the amount, but big enough for you not to want to withdrawal any. 401(k) is meant to be a retirement account, not an investment account, which is why you get dinged with the penalty.

I was concerned as to what I will actually be entitled to once I retire, as far as my 401K amount is. Wasn't sure if it's all mine or will they take a big percentage or chunk for tax purposes.

 

[upschuck]

I was concerned as to it that I will actually be entitled to once I retire, as far as my 401K amount is. Wasn't sure if it's all mine or will they take a big percentage or chunk for tax purposes.

If you have the roth, you keep everything, regular gets taxed, because it wasn't taxed before

 

[Jkloc420]

You can always do after tax deduction. That is up to 5 percent of your check. Since it is already taxed you are able to take that out at any time without the 20 percent to the fed or the 10 percent penalty for taking it out early.

 

[Brownslave688]

About $40000, UPS won't match, so what percentage would I get back?

You obviously don't have clue how this works.

I'm not being an ass I'm just being honest. Seek professional help immediately.

 

[Damondogg]

You obviously don't have clue how this works.

I'm not being an ass I'm just being honest. Seek professional help immediately.

It's cool, if I fully understood I wouldn't have posted this topic as it is. I've got some help already by the way.

 

[UpstateNYUPSer(Ret)]

It's cool, if I fully understood I wouldn't have posted this topic as it is. I've got some help already by the way.

Our 401k has a "401k for Dummies" on their website.

 

[Damondogg]

Our 401k has a "401k for Dummies" on their website.

That'll work for this dummy. LOL

 

[upschuck]

Most the things in the UPS/IBT 401k are fine, except for the bond funds. Low fees, and do relatively good. As long as you can ride out the dips, you'll be fine putting it in any of the other funds listed. I'm in about 5 of them or so, and they all do fine.

 

[Brownslave688]

Most the things in the UPS/IBT 401k are fine, except for the bond funds. Low fees, and do relatively good. As long as you can ride out the dips, you'll be fine putting it in any of the other funds listed. I'm in about 5 of them or so, and they all do fine.

The problem is the op has no plan at all. Not only no investment plan but If they are close to retirement they have no withdrawl plan.

And if full time to be enrolled 15 years and have under 40k he's not putting enough away.

 

[upschuck]

The problem is the op has no plan at all. Not only no investment plan but If they are close to retirement they have no withdrawl plan.

And if full time to be enrolled 15 years and have under 40k he's not putting enough away.

He's not close to retirement, if he needs more money to live now.