1. Even if you keep only 50% of the employer match, that’s still 100% more money than you’d have if you didn’t contribute.
2. While it seems unlikely you’ll stay the full 4 years, you never know what will happen. You don’t want to look back at 4 years and calculate how much money you turned down.

Think of a 401k or an IRA like an umbrella. Anything done under the umbrella is a nontaxable event (except Roth conversion). Once it leaves the cover of the umbrella it gets hit with taxes.

Just because it has no taxable event doesn’t necessarily make it a good idea though. “Trading” in the 401k will lead to less profits more often than not. If this is part of a purposeful change in asset allocation that’s fine. But if you think you can time the market, think again.

Ext market index is mid and small cap only. Inst index is the 500 index

>the advisor buys and sells constantly

Why does your advisor do this?

As long as you separate from Company A the year in which you turn 55 or later, and keep the money in Company A's 401k, you qualify for the Age of 55 rule for Company A distributions. Company B or C distributions do not qualify.

IRS does not care about future employment. Sometimes you hear the mistaken belief that you have to "retire" there for it to count, but it's not the case.

From IRS.gov:

>Distributions made to you after you separated from service with your employer if the separation occurred in or after the year you reached age 55

If you want a $0 taxable event for this, the only solution is to take the full gross amount and place it into a Traditional IRA, coded as indirect rollover (not contribution).

You replace the 20% with your own money. Then you get the withholding back next year when you file.

So if it was $1000 and you netted $800, come up with the extra $200 yourself and put $1000 into the IRA as a rollover. Then you get the $200 that went to the IRS back next year.

Pretty much everything else you're suggesting either still make this a taxable event, and/or still include the 10% penalty.

https://www.investopedia.com/terms/i/indirect-rollover.asp

>Should I disconnect my parents from my Bank Account
>
>I am 26 F

Yes

>My mom has a bad habit of texting me when shes broke asking for money cause she has not gotten paid yet.

This alone is a problem for a parent and adult-child relationship

>I usually will say Yes, but she takes the money before she even asks.

And this is a major problem - get a new bank account ASAP.

Even if you didn't have this difficult dynamic going on, the advice should still be to get your parents off your bank account, credit card, etc. It's just good sense to have your own financial situation and not have it influenced by a parent.

There's ways you can position yourself for success in terms of cutting the cord, but just remember you can't control her reaction. Best of luck

What is in box 7 of the 1099-R?

How long ago did the transaction occur?

https://www.reddit.com/r/personalfinance/wiki/commontopics/

https://www.reddit.com/r/personalfinance/wiki/rothortraditional/

>"We match 125% of contributions up to 6% of an employee's annual gross pay."

For every $1.00 you contribute, employer will put in $1.25. They'll match you up to your 6% contribution, but won't give any more match if you do 7% or higher. 125% of 6% is 7.5% so the employer match is effectively 7.5% as long as you do 6%.

You should do at least the 6%, but ideally higher up to 10 or 15% if you can afford it

>100% vesting in company matching contributions after two years of service.

Employer contributions will be put in regularly and you can see them in your account. But it's not actually yours if you leave the company too soon. If you leave before 2 years, you get none of the employer match. If you stay at least 2 years, all the employer match is yours when you leave.

You still want to contribute, (1) because you still need to save for retirement regardless of match, (2) because you don't want to end up staying 2 years and look back on all the free money you turned down

> You're always 100 percent vest in your contributions

Just means what you contribute is always yours, there's no vesting period for your own money.

>For associates hired after January 1, 2023, you must complete 1 year of service before you become eligible in the company matching contributions

Company won't give any employer match until you've worked there 1 year. But you lucked out, you were hired before then, so you got in before they made the match worse (by requiring a 1 year anniversary). Any new hires miss out on 1 years's worth of match (basically a 6% pay cut as far as I'm concerned)

>Rollover contributions, Roth rollover contributions, and Roth conversion contributions are not matched.

Just means if you rollover an old employer plan into this one, employer doesn't match any of it. They only match your current contributions.

It’s basically that you’re forced to choose between a non deductible Trad IRA, or a Roth conversion of a non deductible Trad IRA contribution, which assumes you have no other Trad IRA funds.

Same for MBDR: once you’ve maxed the pretax 401k space the only thing left (if your plan even offers) is after tax. And since after tax earnings are pretax, you may as well convert to Roth to make the earnings (eventually) tax free.

>would it be unwise to take a loan for 7k of money I've set aside for retirement?

Yes it is.

Taking a 401k loan means the funds are out of the market until repaid, so hurts your growth and plan balance over the long run.

Short term, in the unlikely event you lose your job, the entire loan could become due immediately, and would be taxable + 10% penalty if not paid. And since a loan has no withholding when originally taken, that's a possibly large tax bill.

401ks also have strict rules about loan eligibility: you can only take max 50% of your balance up to $50k, with a 12 month look-back rule on that limit. So if you took a loan now and then had a truly dire emergency, you'd be possibly unable to take another loan at that time.

If spouse doesn’t sign off, they are the beneficiary not the trust/children.

Think again
https://www.schwab.com/learn/story/does-market-timing-work

Those who flee to cash in response to short term market losses (after the market has already gone down by the way, locking in losses) have a far lower balance by retirement age than those who simply buy, hold, and keep buying through thick and thin.

You've conceded you don't know much about investments, which is okay. The people who frequent this forum do, and are telling you to reconsider "going defensive", as it's a data-proven losing strategy.

Good luck

• Tax: The $1,500 will be added to your 2022 income, so you'll pay income taxes on that money. You had at least 20% withheld, depending on the rest of your income tax situation that may or may not cover you.
• Penalty: You'll owe a 10% penalty on the distribution, assessed at tax time.
• Investment growth: You'll obviously lose years worth of investment growth.

You shouldn't cash out 401ks when you change jobs, you should roll it over to the new job. It would've been a better idea to do a direct rollover to a 401k or IRA.

If you're still within 60 days of the 401k closure date, strongly suggest you put the full 1500 into an IRA coded as an indirect rollover, or at least the amount you received net of taxes.

Considerations are: fees, investment options, personal preference.

So if the old 401k has high fees and/or poor investment options, usually better to roll it over. Most brokerages have no administrative fees and low fund expense ratios. Shop around and compare fees, services, etc.

Statistically lump sum is the best move, DCA second best.

Psychologically it's totally fair if you'd rather DCA. But if you're comfortable with lump sum, get it into your 401k, you'll never have another opportunity to make 2022 year contributions. And your 401k is for 40+ years from now, so who cares what the market does in the short term anyway?

Need to contribute way more than $1000 a year to retirement. At least 10%.

$1m home might be a lofty goal. But where house fund goes depends on your timeline. If 1-3 years it's gotta be cash. If +6 it can be stocks just be mindful as you near closer to the goal.

Yup spot on about the Roth, dividends not a factor either way really.

I mention budget because of the CC debt and your saying you made poor financial lifestyle decisions. If you've worked through those already then you should be good.

Yes without tax or penalty because your contributions were $2,100.

>Can I withdraw the full $2,027 without penalty?

Dividends are meaningless for this conversation. Roth contributions are tax and penalty free, anything above the contributions are the earnings which are taxed and penalized until reaching 59.5.

>Roth has earned ~127 in dividends since inception.
>
>Can I withdraw the full $2,027 without penalty? Or would I only be able to withdraw $1,900 ($2,027 - $127)?

I would generally recommend against using a retirement account to pay for current expenses. This will be tax/penalty free but it sets a bad precedent and also handicaps your future retirement security.

Also recommend against even thinking about what and how you'll invest, until you sort out your debt, spending, and budget. Use the wiki and prime directive here to get a handle on budgeting 101, that should be your priority at the moment.

Hold on if you have a gambling problem you need to sort that issue out before you think about investing, otherwise you’ll just gamble in the stock market what you had previously gambled in casinos or sports books or whatever.

Investing done right should be boring, long term.

R/personalfinance has good material on budgeting, start there. Give it at least a few weeks and once you have spending and saving down, you be can start investing. Good luck

I’m assuming you are not approved for a mortgage on your own which is why you’re asking about your dad as co-signer.

I would take this as an indicator that you’re not in a position to buy a house yet. Wait until you’re out of school, you don’t know you have the higher income yet.

Can you afford the house on your current $26k annual income?

https://www.irs.gov/retirement-plans/identifying-highly-compensated-employees-in-an-initial-or-short-plan-year

https://www.investopedia.com/terms/h/highly-compensated-employee.asp

You may not be able to do much about it, but increased participation from all employees is a major factor. Part of the reason you see employer match and auto enrollment: good for those employees anyway but also good for HCEs by balancing the scales.

Not saying it's not a tough shake, but that's the job, they pay you to meet those expectations.

OP should definitely start looking for a new job now to be safe, though if 80% truly aren't hitting targets then management isn't going to terminate everyone, they'll probably change the metric. They have to explain to *their boss why 80% of their people aren't hitting their numbers!