Comments on: Sometimes 401(k)s are Better than IRAs http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/ Elite Personal Finance and Estate Planning Information for Everyone Thu, 18 Mar 2010 13:44:04 +0000 hourly 1 By: Traditional and Non-Traditional Unique Ways to Access Large Amounts of Liquid Cash | My Journey to Millions http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-6123 Traditional and Non-Traditional Unique Ways to Access Large Amounts of Liquid Cash | My Journey to Millions Tue, 15 Dec 2009 16:20:40 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-6123 [...] I have discussed, sometimes a 401(k) is a better option than an IRA, and this is only one of the reasons.  If you have to borrow, why not borrow from yourself?  The [...] [...] I have discussed, sometimes a 401(k) is a better option than an IRA, and this is only one of the reasons.  If you have to borrow, why not borrow from yourself?  The [...]

]]> By: JoeTaxpayer http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-5842 JoeTaxpayer Fri, 20 Nov 2009 04:12:53 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-5842 Ok, I'll give you another reason to replace dropped one:<br>Say you are above the phaseout range for being able to deduct an IRA contribution, and you've make post-tax deposits over the years. Starting in 2010, you can convert that money to a Roth with tax due only on the growth, not the money you deposited post tax. If you roll the 401(k) money to an IRA, it gets counted in the mix and tax must be paid in proportion to the pretax money you have. The IRA from the 401(k) transfer and the existing IRA must be treated as "one IRA" with pre and post tax component. Keeping the the 401(k) avoids this. Ok, I'll give you another reason to replace dropped one:
Say you are above the phaseout range for being able to deduct an IRA contribution, and you've make post-tax deposits over the years. Starting in 2010, you can convert that money to a Roth with tax due only on the growth, not the money you deposited post tax. If you roll the 401(k) money to an IRA, it gets counted in the mix and tax must be paid in proportion to the pretax money you have. The IRA from the 401(k) transfer and the existing IRA must be treated as “one IRA” with pre and post tax component. Keeping the the 401(k) avoids this.

]]> By: Evan@MyJourneytoMillions http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-5841 Evan@MyJourneytoMillions Fri, 20 Nov 2009 04:02:55 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-5841 Joe, I am shocked but you are correct. see <a href="http://www.irs.gov/retirement/article/0%2C%2Cid=162416%2C00.html" rel="nofollow">http://www.irs.gov/retirement/article/0,,id=162...</a> question #5. <br><br>I will make the correction to the post. <br><br>That being said, I think there is still something to be said about the loan option. Joe, I am shocked but you are correct. see http://www.irs.gov/retirement/article/0,,id=162... question #5.

I will make the correction to the post.

That being said, I think there is still something to be said about the loan option.

]]> By: JoeTaxpayer http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-5840 JoeTaxpayer Fri, 20 Nov 2009 03:20:50 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-5840 I believe Hardship withdrawals are still subject to 10% penalty. Among the citations; <a href="http://www.401khelpcenter.com/hardships.html" rel="nofollow">http://www.401khelpcenter.com/hardships.html</a> I believe Hardship withdrawals are still subject to 10% penalty. Among the citations; http://www.401khelpcenter.com/hardships.html

]]> By: My Journey to Millions Reallocates his 401(k) After Analyzing his Portfolio | My Journey to Millions http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-4719 My Journey to Millions Reallocates his 401(k) After Analyzing his Portfolio | My Journey to Millions Thu, 27 Aug 2009 17:50:06 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-4719 [...] First thing I should mention is my expense ratio.  While an expense ratio of 1.1% is not great, when compared to low fee index funds, I do not have low fund index options within my 401(k).  This 1.1% is worth it considering my match, and sometimes a 401(k) is better than an IRA. [...] [...] First thing I should mention is my expense ratio.  While an expense ratio of 1.1% is not great, when compared to low fee index funds, I do not have low fund index options within my 401(k).  This 1.1% is worth it considering my match, and sometimes a 401(k) is better than an IRA. [...]

]]> By: When Applying for a Mortgage don't Forget to Calculate your Debt to Income Ratio | My Journey to Millions http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-4252 When Applying for a Mortgage don't Forget to Calculate your Debt to Income Ratio | My Journey to Millions Wed, 29 Jul 2009 22:49:08 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-4252 [...] Get a loan from your 401(k) to pay off higher minimum payment debt; [...] [...] Get a loan from your 401(k) to pay off higher minimum payment debt; [...]

]]> By: Debt to Income Ratio Calculation is Important for Qualifying for a Mortgage | My Journey to Millions http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-4248 Debt to Income Ratio Calculation is Important for Qualifying for a Mortgage | My Journey to Millions Wed, 29 Jul 2009 12:59:46 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-4248 [...] Get a loan from your 401(k) to pay off higher minimum payment debt; [...] [...] Get a loan from your 401(k) to pay off higher minimum payment debt; [...]

]]> By: You Have to Prepare for Retirement – Do Not Depend on the Government | My Journey to Millions http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-3545 You Have to Prepare for Retirement – Do Not Depend on the Government | My Journey to Millions Tue, 23 Jun 2009 13:03:46 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-3545 [...] it Setting up Different Retirement Accounts and being [...] [...] it Setting up Different Retirement Accounts and being [...]

]]> By: Carnival of Personal Finance #204 | Earn What You Spend http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/comment-page-1/#comment-2309 Carnival of Personal Finance #204 | Earn What You Spend Mon, 11 May 2009 12:03:58 +0000 http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/#comment-2309 [...] Journey to Millions presents Sometimes 401(k)s are Better than IRAs - a nice comparison of these two retirement vehicles. [...] [...] Journey to Millions presents Sometimes 401(k)s are Better than IRAs - a nice comparison of these two retirement vehicles. [...]

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