[Show all top banners]

*
Replies to this thread:

More by *
What people are reading
Subscribers
:: Subscribe
Back to: Kurakani General Refresh page to view new replies
 401k and IRA
[VIEWED 7104 TIMES]
SAVE! for ease of future access.
Posted on 01-21-08 5:20 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

Hello guys, what is the difference between simple IRA plan and 401k plan that companies usually offer for its employee.  any insight will be appreciated. 
 
Posted on 01-21-08 5:31 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

i also have a question regarding 401K plan. If we quit job in US and go outside US not to return back, will we get that money back in that case? Or we will have to wait till we are 65?
 
Posted on 01-21-08 6:38 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

IRA is same as 401k, only that 401k is employment based retirement account, while IRA could be opened in any financial institution. To answer your question regarding being able to take money our. Yes you could take the money out but if you do, there's a hefty fine, could be about 35- 45% in tax as a penalty imposed if you take money out. But you could take it out.
 
Posted on 01-21-08 8:36 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

Individual Retirement Annuity is after tax and  you can buy from any financial instituions, and 401k is employment based retirement plan, if you get 50 or 100% match from employer on your contribution, just get it. this is win-win situation.


 
Posted on 01-21-08 8:36 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

Individual Retirement Annuity is after tax and  you can buy from any financial instituions, and 401k is employment based retirement plan, if you get 50 or 100% match from employer on your contribution, just get it. this is win-win situation.


 
Posted on 01-21-08 9:47 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

i am still not clear about employment based retirement plan.   my company is matching 3% max of my annual  salary in my IRA plan.  so, what is the difference if a company matches same 3% in 401 k plan. 
 
Posted on 01-22-08 4:37 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 


Silendra, step in and advise here, he is the tax man and providing free services.

 
Posted on 01-23-08 5:38 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 
 
Posted on 01-23-08 6:32 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

*
I don't know that company matching on IRA.
But in case of 401k, if your salary is $50000 @ 3%( 100% matching) is $1500.
If you put $1500 a year, your company will add $1500 more. So at the end of the year your 401K saving is $3000
Last edited: 23-Jan-08 06:33 PM

 
Posted on 01-23-08 6:38 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

*,
a company sponsored 401k definitely has an advantage if you plan to be in the US for a long long time. you can set aside up to $15,500 pretax annually  from your salary and many companies match 3% - 6% of the first 50% of your annual salary. you can take all this money and invest in various markets, depending on your company's portfolio options. IRA is short for "individual retirement account" and you may contribute $5000 annually. there's more details at www.ira.com.

all the details can't be covered in these threads. i suggest you to visit this site for more information: www.investopedia.com.
Last edited: 23-Jan-08 06:39 PM
Last edited: 23-Jan-08 09:22 PM

 
Posted on 01-23-08 6:39 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

himalayandude, well though my company has simple IRA plan for its employees, they match maximum of 3% of salary.  i just wanted to know what other differences that IRA and 401k plan have.  i know some companies matches more than 3%, that is not my curiosity.  i was wondering if there are other benefits other than matching %.  thanks
 
Posted on 01-23-08 6:43 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

does anyone know about company matching on IRA? i've never heard about it. i thought it was for 401k or 403(b) or something like that. i thought IRA was something you opened personally and could get a deduction in your tax return (provided the criteria was met).

 
Posted on 01-23-08 6:50 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

midwestdude, actually in our company its like that.  my company is doing this for its employee.  you are right that the amount in this plan is exempted from tax.    actually someguy from northwestern mutual fund came to our office and was saying its a smaller version of 401 k plan.  i am not sure what does that mean...and  i am not sure what other differences are there ...


 
Posted on 01-23-08 6:51 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

401 k  definitely has advantage than IRA. Max amount that you can contribute on IRA for 2008 is $5000.
Check this wikipedia link, it might help you

 
Posted on 01-23-08 7:01 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

thanks for the link himalayandude.  it does mention that IRA is contributed by employee only.  however, in our case its different.  well, 5000 is a lot of money if i deduct 3% of my salary, so thats not a problem i guess.  i dont earn that kind of money at this time.  thanks again.
 
Posted on 10-07-19 9:00 PM     [Snapshot: 2750]     Reply [Subscribe]
Login in to Rate this Post:     0       ?    
 

IRA is same as 401k, only that 401k is employment based retirement account, while IRA could be opened in any financial institution 401 k definitely has advantage than IRA
 


Please Log in! to be able to reply! If you don't have a login, please register here.

YOU CAN ALSO



IN ORDER TO POST!




Within last 30 days
Recommended Popular Threads Controvertial Threads
What are your first memories of when Nepal Television Began?
nrn citizenship
Send Parcels from USA to Nepal & Worldwide.
Why is every youths leaving Nepal? Why are not youths entering politics and serving the country, starting business etc?
TPS Work Permit/How long your took?
महँगो अण्डाको पिकल्प : कुखुरा र खोर भाडामा लिने
Travelling on TPS advance travel document to different country...
Informatica consultancy share
काेराेना सङ्क्रमणबाट बच्न Immunity बढाउन के के खाने ?How to increase immunity against COVID - 19?
TPS Renewal Reregistration
Nepali doctors future black or white usa ?
हेर अमेरिकामा नेपालीहरुको बेज्जत
Thank you for the sajha policy
Are you ready to know the truth?
मन भित्र को पत्रै पत्र!
चितवनको होस्टलमा १३ वर्षीया शालिन पोखरेल झुण्डिएको अवस्था - बलात्कार पछि हत्याको शंका - होस्टेलहरु असुरक्षित
Another Song Playing In My Mind
Does the 180 day auto extension apply for TPS?
Travelling to Nepal - TPS AP- PASSPORT
WHAT DO YOU GUYS THINK ABOUT THIS?
NOTE: The opinions here represent the opinions of the individual posters, and not of Sajha.com. It is not possible for sajha.com to monitor all the postings, since sajha.com merely seeks to provide a cyber location for discussing ideas and concerns related to Nepal and the Nepalis. Please send an email to admin@sajha.com using a valid email address if you want any posting to be considered for deletion. Your request will be handled on a one to one basis. Sajha.com is a service please don't abuse it. - Thanks.

Sajha.com Privacy Policy

Like us in Facebook!

↑ Back to Top
free counters