401k help

[Vaampire]

50 minutes ago, Rebel_Uncle said:

Wrong information: 

Employer only matches max 5%, ante 

Nuvu 5000 vesthe vadu 250$ vesthadu. 

oka year lo nuvu 10K Vesthe vadu oka 500-1000 vesthadu. 

Good nuvu withdraw chesukonte 10% outright cut avudhi. 

so 11k ( 10k + emp 1k) .... 10% early with draw feez podhi + that year neku taxes emi lekapothay you are good, 

then isntea of 20% slab rate you will be in 15% slab rate US Min 15% start avudhi.

Neeku 401k gurunchi ABCD kooda telvadu Ani ardham ayindi.... Plz don't give suggestions to others regarding 401k.

 

Employee match 50% of what we contribute upto a Max of certain percentage of our salary untadi.

 

Pedha companies lo employees 19k contribute chesthey employer 9.5k chestharu

[Vaampire]

54 minutes ago, Spartan said:

21K lo tax will be equivalent to ur tax bracket  + 2K = 25% racket veskunna(5K) = 7K poi 13K vastai.

but nuvvu eppudante appudu teskolevu...companies condition pedtai, that u cannot withdraw until u leave the company ani..

 

market aa..... mari nuvvu dachukunna dabbul eamaitai anukuntunnav...?> they are invested in funds.

Adding some more info.

21k lo nuvvu contribute chesindi 10k before tax which would be 7k after tax. Nee employer 10k, 1k appreciated anukundam.

So 21k nuvvu withdraw chesthey penalty anni kalipi 40% cut ayindi anukundam. U will still get 12600. 

Adhey nuvvu 401k contribute cheyyakapothey 10k pre tax which equals to 7k after tax.

 

So 7k ekkuva naa lekha 12.6k ekkuva?

[Spartan]

15 minutes ago, Vaampire said:

Vanguard etc anni default allocation untadi. Like some amount in 2025 plan, something in 2030 plan.

3rd party folks like blooom manage those allocations for us.  I think they charge $40-100 per year. 

Naa friend 401k amount up by 10% this month annadu. Andukey koncham explore chefdam ani @Spartan

@Vaampire  yeah but Employer lock undi kada plans lo..

baita cheyalem kada...

there is a payment plan for Vanguard also, let me explore if they allow.

[Vaampire]

Just now, Spartan said:

@Vaampire  yeah but Employer lock undi kada plans lo..

baita cheyalem kada...

there is a payment plan for Vanguard also, let me explore if they allow.

Don't aware of emp locks. Withdrawal ki conditions untayi Ani telusu. Plans ki general gaa undodhu

[pandemkodi]

1 hour ago, Rebel_Uncle said:

Wrong information: 

Employer only matches max 5%, ante 

Nuvu 5000 vesthe vadu 250$ vesthadu. 

oka year lo nuvu 10K Vesthe vadu oka 500-1000 vesthadu. 

Good nuvu withdraw chesukonte 10% outright cut avudhi. 

so 11k ( 10k + emp 1k) .... 10% early with draw feez podhi + that year neku taxes emi lekapothay you are good, 

then isntea of 20% slab rate you will be in 15% slab rate US Min 15% start avudhi.

Haha 😂 

[pandemkodi]

Ours is TrowPrice and that bitch don’t allow options in 401 otherwise would’ve lost very thing by now 😂

[sri_india]

1 hour ago, Rebel_Uncle said:

Wrong information: 

Employer only matches max 5%, ante 

Nuvu 5000 vesthe vadu 250$ vesthadu. 

oka year lo nuvu 10K Vesthe vadu oka 500-1000 vesthadu. 

Good nuvu withdraw chesukonte 10% outright cut avudhi. 

so 11k ( 10k + emp 1k) .... 10% early with draw feez podhi + that year neku taxes emi lekapothay you are good, 

then isntea of 20% slab rate you will be in 15% slab rate US Min 15% start avudhi.

wow .... champesav assalu

[Galactus]

1 hour ago, Vaampire said:

Vanguard etc anni default allocation untadi. Like some amount in 2025 plan, something in 2030 plan.

3rd party folks like blooom manage those allocations for us.  I think they charge $40-100 per year. 

Naa friend 401k amount up by 10% this month annadu. Andukey koncham explore chefdam ani @Spartan

mine is up 12% this year last week  , this week I think it would have gone a little more up

investing incrementally adds up fast , my manager had 600k+ last year , ofcourse he had been contributing to 401k for several years

[9ine]

Any 401K can be withdrawn anytime with penalty wether its traditional or Roth.

employer will have limit on what they will match eg : 6% of your base salary. some companies match 50% of your match and some will do 100%. 

- you can choose your type of investment in 401K/401K roth. stable value fund/Bonds/Index Funds. you will have limited investment choices(cannot invest in specific stock)

- some employers will have vesting time and some will dont. eg : 50% of employer match will be vested after 1 year and 100% vest after 2 years.

- Traditional 401K(invest before taxes) : when you with draw before your retirement age you need to pay 10% penalty and taxes.

- Roth 401K(invest after taxes): when you withdraw before retirement you have some conditions to withdraw tax and penality free Roth withdrawal under retirement conditions. if its after retirement age and account is more than 5 years old you can withdraw money from a Roth IRA with no taxes or penalties.

- when you change  employment say after vesting you can rollover the amount to new employers account/keep as is with old employer or you can open 401 K IRA account of your choice of broker and transfer funds to it. then you have the freedom to invest where you want to invest. you can invest in your choice of stocks, do trading or even invest in crypto using grayscale trust funds like(GBTC, ETHE,...) 

-if you ask me its foolish not to invest. eventually you will have enough money to live after you retirement even if don't save anything because of unknown circumstances. don't delay the earlier you start investing the more you will make.

"For example, if your goal is to have $1 million at age 65 and you save just under $4,500 each year starting at age 20, there's a good chance you'd meet your goal.

If you start at age 30 instead, you'll have to save about $9,000 each year for the same chance at reaching your goal.

Beginning at age 40? You'll need to save about $18,000 a year. And if you wait until age 50, you'll need to put away over $40,000 a year to give yourself a good shot at reaching your goal."

 

 

[Peter123]

tax free

employer cont

you can contribute more to avoid tax

good retirement funds, by the time you retire

 

[BrotherBairagi]

7 hours ago, JAMBALHOT_RAJA said:

Uncle which is better regular 401k or roth 401k ?

Regular 401k is before tax but u will pay tax at withdrawals 

roth 401k investment is after tax and it will grow tax free and you wont pay tax on withdrawals after retirement.

I prefer roth 401k because at the end you will have all the money urself lets say a million rather than 70% or so based on ur tax bracket 

Edited November 25, 2020 by BrotherBairagi
Added preference

[BrotherBairagi]

2 hours ago, 9ine said:

Any 401K can be withdrawn anytime with penalty wether its traditional or Roth.

employer will have limit on what they will match eg : 6% of your base salary. some companies match 50% of your match and some will do 100%. 

- you can choose your type of investment in 401K/401K roth. stable value fund/Bonds/Index Funds. you will have limited investment choices(cannot invest in specific stock)

- some employers will have vesting time and some will dont. eg : 50% of employer match will be vested after 1 year and 100% vest after 2 years.

- Traditional 401K(invest before taxes) : when you with draw before your retirement age you need to pay 10% penalty and taxes.

- Roth 401K(invest after taxes): when you withdraw before retirement you have some conditions to withdraw tax and penality free Roth withdrawal under retirement conditions. if its after retirement age and account is more than 5 years old you can withdraw money from a Roth IRA with no taxes or penalties.

- when you change  employment say after vesting you can rollover the amount to new employers account/keep as is with old employer or you can open 401 K IRA account of your choice of broker and transfer funds to it. then you have the freedom to invest where you want to invest. you can invest in your choice of stocks, do trading or even invest in crypto using grayscale trust funds like(GBTC, ETHE,...) 

-if you ask me its foolish not to invest. eventually you will have enough money to live after you retirement even if don't save anything because of unknown circumstances. don't delay the earlier you start investing the more you will make.

"For example, if your goal is to have $1 million at age 65 and you save just under $4,500 each year starting at age 20, there's a good chance you'd meet your goal.

If you start at age 30 instead, you'll have to save about $9,000 each year for the same chance at reaching your goal.

Beginning at age 40? You'll need to save about $18,000 a year. And if you wait until age 50, you'll need to put away over $40,000 a year to give yourself a good shot at reaching your goal."

 

 

Well explained bro

[Spartan]

13 hours ago, Vaampire said:

Vanguard etc anni default allocation untadi. Like some amount in 2025 plan, something in 2030 plan.

3rd party folks like blooom manage those allocations for us.  I think they charge $40-100 per year. 

Naa friend 401k amount up by 10% this month annadu. Andukey koncham explore chefdam ani @Spartan

@Vaampire ninn cheppina stock 270 ki options pettamanna ippudu 275 adi 

[Vaampire]

3 hours ago, Spartan said:

@Vaampire ninn cheppina stock 270 ki options pettamanna ippudu 275 adi 

New nee to stock options. Still trying to understand. @Spartan