Comments on: The 401(a) Plans and Rollover Rules (What You Need to Know) https://www.goodfinancialcents.com/401a-plans-rollover-rules/ Wed, 17 Jan 2024 01:31:54 +0000 hourly 1 https://wordpress.org/?v=6.4.3 By: Ken https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9731997 Sun, 19 Feb 2023 01:33:04 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9731997 My wife worked for a Hospital in Olympia, WA last month working was June 2018. Their 401(a) retirement plan was under Fidelity. Due to military we moved to Texas. She forgot about the plan and we calculating how much retirement and all of the investment she has done so that she can transfer to TSP. Well to our surprise, the money that she invested was taken “forfeiture” in April 2022.

]]> By: Mary Virginia Smith https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9653336 Sun, 16 Jan 2022 01:47:31 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9653336 My chronically disabled son is starting a wonderful part-time position (all that he can manage) as a telecommuting center clerk through an NTICentral.org contract with the IRS. The contract is governed by the US DOL’s Service Contract Act regulations which includes a fringe health and welfare benefit ($4.23 per hour) as part of the overall compensations package. This benefit is to be deposited into the National Telecommuting Institute, Inc., Retirement Plan, a tax-deferred 401a plan administered by TIAA-Cref. Participation is mandatory for all NTI-IRS contract employees. The plan notice states that Social Security does not consider this health and welfare benefit taxable wages until withdrawal. Based on income eligibility, my son also receives critical financial subsidy support benefits through Medicaid (MD Dpt. Health and Social Services) and the HUD Housing Choice Voucher Program/HCVP. My question is do Medicaid and HCVP access 401a benefits the same way, eg., not counted as income / assets in eligibility determinations? Medicaid social services and HCVP rent subsidy benefits are crucial to my son’s social services support and housing stability such that their loss sadly may render him financially unable to accept a wonderful job such as this.

]]> By: John https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9634730 Mon, 27 Sep 2021 20:20:06 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9634730 In reply to Mitchell W.

You will not have full access, as rollover assets will be tracked separately.

]]> By: michelle https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9625409 Wed, 21 Jul 2021 18:12:24 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9625409 In reply to Jennifer.

Yes. I get a nice refund every yr. Because my tax rate is like 12% not the 20% they withhold plus your dependant.

]]> By: Linda https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9625182 Mon, 19 Jul 2021 22:28:19 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9625182 I recently left my state job. I was considered a OPS employee (other personal services) which is defined as a temporary worker, although I worked with them for 2 1/2 years, and I’ve known other OPS employees who have been working for 6+ years there. My 401a plan mandated a 7.5% withdrawal from my paycheck in lieu of social security being taken out. There were no employer contributions I know of. I am over 60. I want to withdraw the funds. Is there any way to avoid the 20% federal tax? I appreciate any and all advice, as I’ve read several different articles about this – enough to confuse me.

]]> By: Joe https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9571903 Wed, 21 Oct 2020 14:33:31 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9571903 What if the 401a gains income while leaving the employment, while the account is still in my name, before the 5 years required to be vested.
So, after 5 years does the account become vested account?

]]> By: Greg Schneider https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9539129 Sun, 15 Dec 2019 22:40:52 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9539129 In reply to robert s brodosi II.

I work for a city municipality government in Florida and nearing retirement, age 66. I am covered by and contribute to a state retirement pension with defined benefits and vested. I am nearing retirement with several thousand dollars in unused vacation accumulated. My employer states that a cash out of the vacation accumulation is not permitted directly to a non-bargaining salaried employee but the employer will, in accordance with the Employee Procedures and Rules Handbook, deposit the distribution into a 401(a). No rules of the 401(a) have been provided by the employer. Is this forced acceptance of a 401(a) permissible by the employer and or IRS rules.

]]> By: robert s brodosi II https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9526518 Mon, 29 Jul 2019 14:43:47 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9526518 Hello. I work for Marton Technologies (govt contractor)and this 401a was involuntarily pushed on us as well. My question is, we get paid every 2 weeks from this company however, they are holding on to our 401a withdrawals for 3 months before depositing them into our retirement accounts? I am trying to research more on this to see if it’s legit for them to hold onto our money for that long. I can see maybe 30 days but 3 months? seems like they are making investments off our money before they give it back to us. Any help with question would greatly be appreciated.

]]> By: Richard Brown https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9523930 Sun, 30 Jun 2019 21:25:32 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9523930 I am age 50 and work for a government agency. My husband is 53 and is disabled from the school system and receives a pension. My retirement plan is a 401(a) and I plan on leaving my job at age 55. Does the “55 rule” apply for 401(a) plans? Can I draw off my 401(a) plan without the 10% penality?

]]> By: Jeff Rose https://www.goodfinancialcents.com/401a-plans-rollover-rules/#comment-9519168 Wed, 15 May 2019 14:03:10 +0000 http://gfc-live.flywheelsites.com/?p=30541#comment-9519168 In reply to Vitaly.

You’ll have to check with your employer

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