Comments on: Where Should You Invest First – 401(k) or IRA? http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/ Money Management, Small Business, Career Thu, 18 Mar 2010 21:19:10 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ryan http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/comment-page-1/#comment-22189 Ryan Mon, 08 Mar 2010 03:14:20 +0000 http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/#comment-22189 Patricia, it may be best for you to consult with a professional financial planner who can help you design an investment plan to fit your specific needs. Patricia, it may be best for you to consult with a professional financial planner who can help you design an investment plan to fit your specific needs.

]]> By: Patricia Williams http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/comment-page-1/#comment-22185 Patricia Williams Sun, 07 Mar 2010 23:19:50 +0000 http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/#comment-22185 My questions is i just lost my job a month ago, which the company i worked for had 401k plan. However i just rollover the money i had in a Personnal Retirement Plan. As a result i am trying to make a decsion on what i should invest in, stock bonds, manuel funds. I need help with this so that the money i do have would be save ,and it may grow. HELP! My questions is i just lost my job a month ago, which the company i worked for had 401k plan. However i just rollover the money i had in a Personnal Retirement Plan. As a result i am trying to make a decsion on what i should invest in, stock bonds, manuel funds. I need help with this so that the money i do have would be save ,and it may grow. HELP!

]]> By: Ryan http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/comment-page-1/#comment-21040 Ryan Thu, 31 Dec 2009 17:24:01 +0000 http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/#comment-21040 Great points, Mitch. Another consideration is vesting period. Most companies make employees wait a couple years before they can take matching contributions with them when they leave. The last two companies I worked for had a year vesting period, though you could be partially vested after 3 years. Great points, Mitch. Another consideration is vesting period. Most companies make employees wait a couple years before they can take matching contributions with them when they leave. The last two companies I worked for had a year vesting period, though you could be partially vested after 3 years.

]]> By: Mitch http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/comment-page-1/#comment-21034 Mitch Thu, 31 Dec 2009 16:24:33 +0000 http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/#comment-21034 One thing worth considering: the way the company MATCHES the employee contribution! For example, I worked for a company that matched at the 6% (3%) level - but only with its own stock. When their share price went from the $20's to the $6's, you can imagine the results. Second consideration: compare the expense ratios on the 401K's mutual fund offerings with the closest equivalent fund, or that same fund, available on the open market. Often a company 401K plan expense ratios are outrageous! One thing worth considering: the way the company MATCHES the employee contribution! For example, I worked for a company that matched at the 6% (3%) level – but only with its own stock. When their share price went from the $20’s to the $6’s, you can imagine the results. Second consideration: compare the expense ratios on the 401K’s mutual fund offerings with the closest equivalent fund, or that same fund, available on the open market. Often a company 401K plan expense ratios are outrageous!

]]> By: Daddy Paul http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/comment-page-1/#comment-21004 Daddy Paul Wed, 30 Dec 2009 12:58:26 +0000 http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/#comment-21004 "Only one of these types of retirement plans involves the possibility of free money – the company 401(k) plan. If your company offers a match, it is probably in your best interest to invest in a 401(k) plan at least to the point of receiving the maximum company match. It is hard to pass up free money!" I think every one need to read this one. ran into a friend of my daughters who was telling me 401K was a waste of time. I showed her using the savers tax credit she could invest 350 bucks and get a 2000 investment in her 401K. “Only one of these types of retirement plans involves the possibility of free money – the company 401(k) plan. If your company offers a match, it is probably in your best interest to invest in a 401(k) plan at least to the point of receiving the maximum company match. It is hard to pass up free money!”
I think every one need to read this one. ran into a friend of my daughters who was telling me 401K was a waste of time. I showed her using the savers tax credit she could invest 350 bucks and get a 2000 investment in her 401K.

]]> By: Ryan http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/comment-page-1/#comment-19836 Ryan Sat, 26 Sep 2009 01:28:47 +0000 http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/#comment-19836 Robson, It's possible there was an error in either the information you were given or an error on the part of the IRS. Another possibility is contributing to an IRA when you were above the contribution limit. For example, if you contributed to a Traditional IRA and claimed a tax deduction, but earned too much to qualify. My recommendation is consulting with a CPA for more information specific to your situation. Robson, It’s possible there was an error in either the information you were given or an error on the part of the IRS. Another possibility is contributing to an IRA when you were above the contribution limit. For example, if you contributed to a Traditional IRA and claimed a tax deduction, but earned too much to qualify.

My recommendation is consulting with a CPA for more information specific to your situation.

]]> By: Robson http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/comment-page-1/#comment-19835 Robson Sat, 26 Sep 2009 01:24:49 +0000 http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/#comment-19835 Hello, I'm in shock! I just got a letter from the IRS asking for 1300. plus penalties for my 2007 return. I contributed the max to my company 401K and opened an IRA for 5000 that year. My bank and employer advised adding the 5k as I was over 591/2 and eligible. Now the IRA is disallowing it and I'll be hit for the 2008 return also. Did I make a mistake? Will I be able to 'remove' that 5k from my IRA - I don't want to be hit with taxes when I withdraw. Thank you! Hello,

I’m in shock! I just got a letter from the IRS asking for 1300. plus penalties for my 2007 return. I contributed the max to my company 401K and opened an IRA for 5000 that year. My bank and employer advised adding the 5k as I was over 591/2 and eligible.
Now the IRA is disallowing it and I’ll be hit for the 2008 return also. Did I make a mistake? Will I be able to ‘remove’ that 5k from my IRA – I don’t want to be hit with taxes when I withdraw.
Thank you!

]]> By: ERIC http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/comment-page-1/#comment-18877 ERIC Tue, 07 Jul 2009 14:53:22 +0000 http://cashmoneylife.com/2008/02/14/invest-401k-traditional-roth-ira/#comment-18877 Infor on 401K. I put in 15%. I think they only match up to 5%. Infor on 401K. I put in 15%. I think they only match up to 5%.

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