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What Are 401k Plans?
Many people plan for their retirement. One way to do so is with a 401k plan. What sets a 401k plan apart from other retirement plans is how it is designed and sponsored. Most 401k plans are sponsored by a company a person may work for. However, other types of organizations such as universities or non-profits may also offer 401k plans to their employees.401k plans that are offered to employees differ from similar plans that may be set up by others. The key difference is that employee 401k plans implement something known as salary deferral. With such a system, a certain portion of an employee's paycheck would be deposited into the plan. While that money is in the plan, it won't be taxed. The only time it will be taxed is when it is taken out of the plan at a later date.This can have certain large benefits. When the money is placed into the plan, it is not taxed. It is taxed when it is taken out. However, due to how the plan works, it is likely to be taxed at a lower rate. This is because when a person is retired it is likely that retiree will be in a much lower tax bracket than when that parson was working. The savings in taxes can be quite significant.401k plans also have the ability to provide a retiree with matching contributions. These contributions into the 401k plan are made by an employer each time differed income is placed into the plan. This matching contribution may match the employee's contribution completely.However, often, it is only a partial matching contribution. The contribution is often calculated with specific formulas. Sometimes, it is a simple percentage such as 50 percent. Other times, it may be a percentage of the first 10 percent of salary deferred. Whatever the case, over time, these contributions can certainly add up to become a major part of the 401k's total funds.There may be certain restrictions on a company's 401k plans. For example, often, a person will have to have worked for a company for a number of years to become eligible for obtaining such a plan.
Which statement is TRUE in regards to a policy loan?
Past-due interest payments not paid after 3 months will void the policy
How can you qualify for tax free 401k withdrawal?
You will never be able to withdraw the deferred compensation amounts from the 401K with out having to pay the federal and state income taxes that will be due when you take any distribution amounts from your 401K plan.
I can't refinance due to my home equity line of credit and cannot make the monthly payments on that- should I pay off my HELOC loan with my 401k in order to refinance my home?
You need to seek professional debt counseling or you're going to lose everything. Get some professional help.
Is it ok to borrow from your 401k?
There is a lot of baggage borrowing from your 401k including that if you lose or change jobs the loan becomes due in full immediately. Personally, with interest rates as low as they are now I would do my best to avoid it unless it is absolutely the only way.
What Are 401k Plans?
Many people plan for their retirement. One way to do so is with a 401k plan. What sets a 401k plan apart from other retirement plans is how it is designed and sponsored. Most 401k plans are sponsored by a company a person may work for. However, other types of organizations such as universities or non-profits may also offer 401k plans to their employees.401k plans that are offered to employees differ from similar plans that may be set up by others. The key difference is that employee 401k plans implement something known as salary deferral. With such a system, a certain portion of an employee's paycheck would be deposited into the plan. While that money is in the plan, it won't be taxed. The only time it will be taxed is when it is taken out of the plan at a later date.This can have certain large benefits. When the money is placed into the plan, it is not taxed. It is taxed when it is taken out. However, due to how the plan works, it is likely to be taxed at a lower rate. This is because when a person is retired it is likely that retiree will be in a much lower tax bracket than when that parson was working. The savings in taxes can be quite significant.401k plans also have the ability to provide a retiree with matching contributions. These contributions into the 401k plan are made by an employer each time differed income is placed into the plan. This matching contribution may match the employee's contribution completely.However, often, it is only a partial matching contribution. The contribution is often calculated with specific formulas. Sometimes, it is a simple percentage such as 50 percent. Other times, it may be a percentage of the first 10 percent of salary deferred. Whatever the case, over time, these contributions can certainly add up to become a major part of the 401k's total funds.There may be certain restrictions on a company's 401k plans. For example, often, a person will have to have worked for a company for a number of years to become eligible for obtaining such a plan.
Which statement is TRUE in regards to a policy loan?
Past-due interest payments not paid after 3 months will void the policy
How can you qualify for tax free 401k withdrawal?
You will never be able to withdraw the deferred compensation amounts from the 401K with out having to pay the federal and state income taxes that will be due when you take any distribution amounts from your 401K plan.
I can't refinance due to my home equity line of credit and cannot make the monthly payments on that- should I pay off my HELOC loan with my 401k in order to refinance my home?
You need to seek professional debt counseling or you're going to lose everything. Get some professional help.
Can a non custodial parent make contributions to his 401K plan even if he is not making his court ordered child support payments?
He may, but the funds in the 401K, as well as any other assets he has, are subject to a lien by the State to collect the past-due support.How do I go about getting a lien if he lives in another state??Contact the child support agency in your state; they can coordinate this with the child support agency in his state. Be insistent/persistent. Good luck!
What statements about estimated tax payments and underpayment penalties is true?
It is true that estimated tax payments are generally required for businesses and individuals who have income that is not subject to withholding. It is also true that if you do not pay enough tax throughout the year either through withholding or estimated tax payments you may be subject to an underpayment penalty. The following points provide more information about estimated tax payments and underpayment penalties: Estimated tax payments are usually payments made quarterly but the payment dates and amounts vary depending on the type of income. An underpayment penalty is typically assessed if the total of your estimated tax payments and withholding is less than 90% of the tax due for the year. The penalty amount is generally equal to the amount of tax you underpaid multiplied by the penalty rate. The penalty rate is typically 0.5% per month and can accumulate up to 25% of the unpaid amount.It is important to note that the IRS may waive the underpayment penalty if you can show that the underpayment was due to reasonable cause and not willful neglect.
Can past due child support be deducted from ssi payments?
no
How does an independent contractor sue for wages?
D IC's are not DUE wages; employees are. IC's are due progress payments or completion payments, as specified in their contracts. Courts will accept contract enforcement suits.
Is injured visitor covered by home owners insurance and due i have to pay the deductible for minoran injurey?
True Homeowners insurance policies include defense and payments for your negligent acts. Usually, there is not a deductible on those payments. A visitor who is injured by your negligence could sue or demand payments and your insurance company would defend you and/or pay the claimant. Talk to the agent or company that sold you the policy.
Is a promissory note still due if no payments were made on it and the time to make all payments has expired?
No. It has expired.No. It has expired.No. It has expired.No. It has expired.
Is it ok to borrow from your 401k?
There is a lot of baggage borrowing from your 401k including that if you lose or change jobs the loan becomes due in full immediately. Personally, with interest rates as low as they are now I would do my best to avoid it unless it is absolutely the only way.
What is the exact meaning of 'current account'?
All payments due have been paid.
