In this guide, we will show you everything you need to know about how to access my 401k, so keep reading!
Below you can find out 5 different methods to access my 401k,
- Method 1 – How Do I Access A 401K From A Former Employer?
- Method 2 – How To Find An Old 401(K)
- Method 3 – How To Withdraw Retirement Funds: 401(K) Distributions
- Method 4 – 401K Early Withdrawal Exceptions | No Penalty
- Method 5 – 🕵 Beginners Guide To How A 401K Works.
Method 1 – How Do I Access A 401K From A Former Employer?
I hope you love the channel and find it useful than becoming a happy retiring subscribe today stephen good morning. Whats going on how can we help good morning question for you and you know part sorry i guess i. Should say not very fine job you so you know forgive me because kind of a dumb question but ive. Recently come into a situation where i need to kind of cash my question has to do with : Cash.
Ive got two companies that i have worked for for the past you know four or five years first company. Was probably you know five years ago about 22 years old worked with him for a couple years i always. Contributed to max the company always matched it then when i went to the next company i know for sure. That it rolled over there both of the same company to folks with adp so i know ive accrued a. Little bit of money in my 401k my question has to do with i guess i need to figure out.
How i can access it i mean i those are both the baby p im having issues with like finding. My login in the net i dont know should i contact each company keep spoiling their fun heres hartmans and. Will they be able to help me even though im not currently employed there anymore okay so that that was. My question so you have a 401 k or it lists sounds like there were two foreign ches they rolled. Into one plan if you were still working there steven you can you can access that money typically through a.
Loan and the loan is usually half of whatever your balance is up to 50 grand is temporarily the size. Of the loan and then you pay it back over time but if youre not there and youre no longer. Contributing or working then youre youre unlikely youre allowed to be able to access alone so in order to pull. Money out of it which you still have the right to do you can easily do it you just have. To pay some pretty big penalties so yeah you could easily call if its still you got if you have.
A even though you dont have a login if you remember its for through adp you just call it the. 1-800 number and adp you get theyll identify you youll youll figure out your participant number theyll be able to. Talk to you about it usually in your case it might even be easier to once you identify the 401k. Plan roll it into an ira stephen its supposed im leaving it there that way you know exactly where it. Is you roll it over to vanguard lets say you have your own ira vanguard the 401k or the 401k.
Is plural they get rolled into vanguard and then you can have a little bit more control over when you. Want to pull money out yes if youre under the age 59 and a half can pay 10% penalty plus. Taxes but for heavens sakes at least you can access your own money you know that youd rather not do. It its not good for long-term retirement but if you need the money you need the money and thats its. Yours to access at this time hi im wes moss and thanks for taking a minute to hear about whats.
So different about my new book you can retire sooner than you think so unlike other retirement books this book. Will give you a step-by-step guide whether in your 20s or 30s or 40s or 50s to learn from what. These successful and happy retirees did to get there i hope you enjoy the book but more importantly i know. That itll help you retire sooner than you think you.
Method 2 – How To Find An Old 401(K)
There are millions of dollars of old 401ks that are unclaimed sitting in unclaimed property somewhere its lost just lost. Money this is way too valuable of an investment account for you to lose it okay im going to help. You avoid doing that ive got three ways coming up my name is mike bernard im the host of the. Wise money show im also one of the certified financial planners right here at cohort financial group make sure you.
Hit that subscribe button turn on notifications and smash that thumbs up button okay so i dont know when youre. Consuming this content but just a couple days ago it was november 1st i live in northern indiana and it. Snowed it snowed and i like all day it didnt have a lot of accumulation but it was terrible its. Not supposed to snow on november first he kidding me so me and im sure my neighbors and everyone else. In town you know popped out that old winter jacket had to throw that on and i reached in the.
Pockets of my winter jacket and i found nothing no there wasnt an old 20 bill that is done that. Doesnt happen anymore people dont carry around cash remember that though i mean when the season change you put in. An old jacket or you throw on those jeans and you reach in the pocket and theres that twenty dollar. Bill or that five dollar bill or something like that you had that little found money surprise it doesnt happen. Anymore everythings digital so youre not going to put on that old jacket or those those old pants and realize.
Theres an old 401k in there that stuff doesnt happen its all digital your financial life is digital so what. Happens if you lose it what happens if you misplace that 20 bill and that old pair of pants instead. Of finding it that moneys actually lost its gone and there are millions of dollars of old 401ks sitting lost. Dormant and gone so how do you make sure you avoid that situation how do you make sure you dont. Lose an old retirement account and that you track it down well thats it lets hit how do you track.
It down to start how do you know if youve got an old retirement account sitting out there and how. Do you track it down well theres three ways that i would tell you to go about it and theres. Id actually go in this order for specific reasons now the first place if you think that youve got an. Old retirement account the first place i would tell you to go look is on your tax return that is. Right on your tax return each and every year you get tax documents they look foreign they look bizarre that.
Looks like a different language and you compile all that stuff together and with if youre doing turbo tax you. Just kind of go through the questions to to hopefully use all the documents or if you go to a. Cpa you just take all that stuff throw it in a plastic bag and bring it into your cpa and. They do something with it but but all of your iras all of your brokerage accounts all of your bank. Accounts theyre all going to give you a tax document each and every year and thats a clue that you.
Might have an account somewhere that maybe you lost track of 401ks dont necessarily give you a tax document each. And every year but iras do they give you a tax form called a 54.98 every single year and that. Basically says hey heres the company heres the investment company usually heres how much you started with heres how much. You ended with and and its a document its a tax document that tells you and tells the irs hey. This person has a tax qualified account hanging out there sometimes they tell you how its invested sometimes even tell.
You the beneficiary of it where we manage at fidelity they put the beneficiary on there so at least once. A year youre going to get this 5498 from all your iras roth iras the confusing thing about this is. It usually shows up in may as opposed to during tax season and so you might just disregard it you. Might not even you might not even really be aware of what that is and you might just throw it. Away thinking its junk but that is can actually be a clue why am i talking about this in regards.
To possibly losing a 401k a lot of times if you have an old 401k thats below a certain amount. Usually below five thousand dollars some plans are different they automatically will move that into an ira for you automatically. And once its into an ira youre going to get that 54.98 every single year so thats one clue the. Reason why i would tell you check out your tax return if were not talking about 401ks were talking about. Other investment accounts or other other places you could put money a tax return is a great way also to.
Just see if theres any clues that youve got accounts somewhere else a lot of people get a dividend statement. For metlife or prudential something like that these old uh insurance companies that you used to have policies with you. You now have shares of stock of those companies and most people dont even realize that they get this dividend. Form every year have no idea what it is they just turn it in it looks like a tax document. But it actually means youve got an account youve got an investment account you own shares of that company sometimes.
Interest statements um from different banks or 1099 statements from different investment accounts so so your tax return its very. Complicated very confusing um but that show that has a lot of clues in it as to where you might. Have accounts that you might not be familiar with so work with your your cpa or even your certified financial. Planner have them go through your document and make sure that every account is accounted for second if youre still. Suspicious that well i might have an old account maybe its still in an old 401k therefore im not getting.
A tax document then i would have you reach out to those former employers reach out to those former employers. Every single year your employer or even former employer needs to have a census done for every participant in a. Retirement plan even thats even if thats a terminated uh employee that census includes everyone on the list and theres. Likely a long list of people that yeah theyre terminated theyre no longer employed but theyre still on that census. So you simply reaching out to hr or just contacting your old employer saying hey im so-and-so i am a.
Previous employee im just checking to see if i have a 401k with you theyll be able to tell you. That very very very quickly what do you do if that company it no longer exists your old employer is. No longer in business if they sold to someone else then youre going to want to contact who they sold. To and you can find that out online im sure if they actually went out of business then i would. Also check online type in your companys name type in 401k and usually youll find i mean obviously google will.
Provide a lot of different potential options but youll want to find something that indicates which investment company held the. 401k because even though your employer your former employer went out of business that doesnt mean that the 401k disappeared. Doesnt mean that the 401k went out of business if that company went bankrupt doesnt mean your 401k went bankrupt. Your 401k is held safe and sound with fidelity or vanguard or john hancock wherever whichever company was there to. Help administer the 401k your moneys safe and sound there so even if your company went bankrupt your previous employer.
Went out of business you still need to track it down and you can do so by finding out which. Company held the 401k and contacting them the the first clue check your tax return look at all those you. Know you know all the minutia into the details of those documents or have better yeah i have a professional. Do that and they can check it out for you two contact old employers three if you still are suspicious. You still think i might have an old 401k out there then its possible it has been transitioned to your.
States unclaimed property list if now as a as an investment advisor as a certified financial planner we manage lots. Of money for our clients and on an ongoing regular basis we need to confirm with fidelity or with the. Institution where we manage money hey do you still have contact with these people or is this a dormant account. And does this need to go to unclaimed now obviously we have close relationships with all the folks that we. Serve so that that doesnt go to unclaimed but if you have lost contact with the investment company or the.
Financial company where that account is they might go through their policies and say yeah actually we dont know where. This person is we havent been able to contact them we havent heard from them we send emails or or. Letters and we have no idea where they are and they could send that account to your states unclaimed property. List so i dont know what state youre in but all states have an unclaimed property list thats how i. Know theres millions and millions of dollars of old 401k sitting out there so search your state unclaimed property list.
And its kind of complicated to go through the steps to prove that hey that money is yours and reclaim. It but still id rather have you go through those efforts than just leave that money out there for good. So here in indiana indiana unclaimed property list ive gone and checked it out myself ive helped clients check it. Out and ive worked with clients to reclaim property that was theirs that shouldnt have landed on that list but. Did so if youve got an old 401k or you suspect you might have an old retirement account first look.
At your taxes next reach out to old employers third do a search in the unclaimed property list now bigger. Than that and and i would argue better than that its better to avoid having accounts fall into unclaimed property. Or be lost its better to avoid that altogether than be able to make the efforts to try and track. Them down so keep your finances organized follow these two tips to make sure you never lose accounts you dont. Lose an old 401k the first all old 401ks guys sit down with your certified financial planner and see if.
You should roll that over to an ira now as a fiduciary i cant just make a blanket statement im. Not just going to make a blanket statement and say you have to move an old 401k to an ira. But there there are tons of reasons why you should likely consider that moving it from an old 401k into. An ira gives you lots of flexibility and all of a sudden just since were talking about losing it now. Its in an ira and youre going to get that 54.98 each and every year it may make sense for.
You to take that old 401k moved into your new 401k but sit down with a certified financial planner take. Some action take some action i wouldnt just leave it dormant thinking well im going to be able to track. This down or i wont forget about this dont dont dont do that you obviously want to make sure its. Invested appropriately you want to make sure beneficiaries are accurate you want to make sure the fees are appropriate so. There are tons of reasons why youre going to want to take control of that old 401k move it into.
An ira move it into your new 401k do something with it convert it to a roth ira so lots. Of things that you want to consider doing to work with a certified financial planner i would just i mean. Step one as as the antidote to the to tracking down an old 401k avoiding needing to do that dont. Have an old 401k do something with it every dollar should have a purpose so work with your certified financial. Planner and that thats the first way to avoid this ever happening in the first place the second comprehensive financial.
Planning you know that theres six areas to your financial life my financial life everyones financial life has six areas. Working with a certified financial planner on comprehensive financial planning ensures that your financial life is always actionable its always. Decisionable and its always clear where things are at in our very first discussion with a potential client were just. Getting to know each other talking about goals talking about services what theyre looking for but after that the second. Thing that we do is we build a financial inventory basically we put your entire financial life all on one.
Page everything from the big stuff to the little stuff its all accounted for on one page its called a. Balance sheet or a net worth statement thats your financial inventory and that should stay updated at all times for. Us we have it so that its connected your bank account your investment account your debt everything is updated in. Real time all the time so that you never lose track of accounts and yeah thats something that we do. For our clients but it shouldnt be unique just to us your comp your certified financial planner should be doing.
Comprehensive financial planning and therefore youll never have a lost account and every account will always have its its you. Know fulfilling its right purpose so work with your certified financial planner make sure that youve got an updated balance. Sheet and a system for making sure that it stays updated thats a way to take your intangible financial life. And make it tangible where you can see it all in one place if youre not getting that service you. Need to you need to contact your cfp and if you dont have one on your team you can always.
Contact my team ive got a whole team of cfps working here we all collaborate together working with our insurance. Professionals our cpas all collaborating together to make sure youve got a comprehensive view of your overall financial life and. That financial wisdom is delivered off of that so you can find us online corehorn.com thats cohort with k or. Wisemoneyshow.com you can find us there as well and always just send us an email info corehorn.com all right there. You have it go out and take your next wise step in your financial life you.
Method 3 – How To Withdraw Retirement Funds: 401(K) Distributions
Note – This section will be updated soon.
Method 4 – 401K Early Withdrawal Exceptions | No Penalty
Note – This section will be updated soon.
Method 5 – 🕵 Beginners Guide To How A 401K Works.
Hey dustin tibbets here financial advisor with jazz wealth managers and im on vacation this week sort of monday through. Wednesday this week and i thought what a good time to actually help my beginners i mean the real beginners. Out there right i get a lot of phone calls a lot of emails from people that really have very. Basic questions that to ask and as i look around youtube yeah were all focused on the other stuff but.
Never the superduper basic you know why because theres no money in that people that make videos on youtube generally. Want to make money off the ad revenue nothing wrong with that by the way we make a few dollars. Here no problem but theyre not very hot theyre not highly viewed videos so people want to make them but. I thought well let me help the beginners and maybe that maybe theyll keep us in mind maybe its marketing. In a way but other than that maybe it helps people get started and if they get started with the.
Right information it might mean less mistakes which means you can make money faster so lets dive in here today. Were talking about the 401k how it works whats going on in there unfortunately if you just started a job. And youve got a 401k offered to you you dont get a lot of help they dont they dont really. Help you they give you a bunch of paperwork maybe a fancy log in to your own portal and youve. Got to decide what to do so lets get started with the first thing youre gonna look at the first.
Thing is you only want to contribute and participate if you find this three-letter word not buy me five letter. Words three letter so you only want to participate if there is a match and the match just simply means. You put in a few dollars they put in a few dollars its free money right so you cant turn. That down indent generally this is how they word it they will say if you participate in the 401k we. Will match three percent of your contributions there may be a limit on that by the way and what that.
Means is they say alright if you put in well lets say you make a hundred thousand dollars a year. They are saying if you put in three percent of your salary which is three thousand theyll put in $3,000. Really they actually will right so thats what theyre saying theyre saying will match up to 3% of your salary. So long as you put in 3% of your salary its a one-for-one sort of thing now sometimes what theyll. Do is theyll say well match 3% on the first three percent of your salary that you put in and.
Then well match 50% of the original contribution the im sorry this is not my wording i would change the. Wording if it was me what theyre telling you is well put in three percent for the first three percent. You put in then were going to put in half the amount right 1.5 percent why we cant just say. That but they say were gonna put in half the amount for anything remainder and there may be a limit. On that as well they may say up to six percent or something like that bottom line is youre looking.
For the match right and i hope you find that its something like well put in six percent of your. Salary itll say something like six percent up to six percent of your salary meaning you cant put in a. Hundred percent of your salary and they match six percent like it doesnt work like that so you put in. Six percent which in our previous example be six thousand by the end of the year after making those contributions. You would have also made six thousand dollars just in free money that they just give you thats a hundred.
Percent return simply for participating if theres no match right if the 401k is offered to you and they say. We dont have any kind of match nothing at all now you want to go look at an ira a. Roth ira or one of those whatever youre looking at there okay so thats the first part is the match. It can be a little complicated just read it a couple times it messes with me still at times as. Well but just know that its there for you and you want to participate if you have a match all.
Right second thing in your 401k you may see a few things theres a theres another video is we all. Wont get off topic here but you might see that you have a 401k a lot of times they just. Leave it like that itll just say 401k and they dont either say roth option which is very unfortunate that. They name it that right or it might they roth 401k which is what it should say so many people. Think that the roth option is actually a roth ira not the case what theyre telling you is a roth.
401k and without getting all the words confused all theyre really saying is this is pre-tax and this is post. Tax not every 401k plan offers it but thats all theyre saying very simply theyre saying do you want to. Put money in and put it in before you pay taxes on your paycheck or do you want to pay. Taxes on your paycheck and then have the money go in if you have this option you more than likely. Want to start there heres the catch remember the example a second ago where we said if you put in.
Six percent they match six percent well you can choose which one you want it to go in if you. Decide over here i want to put in six percent post tax i never want to pay tax again man. This is a headache i dont know what taxes are going to be in the future so i want it. To go into the post tax or roth 401k option well the six percent that they match still has to. Go over here by law and now and and theres no way around that right so the match goes into.
The pre-tax always right so youre always gonna have a good mix anyways so you put your money over there. Theyll put their money over here and yet thats it so its just like having a roth ira however it. Is not a roth ira at all all right next thing wheres the money go so you put money in. How do you invest it well youre gonna be given a menu and on that menu will maybe be twenty. Thirty different mutual funds that you can choose from now this depends on how old you are how long until.
Retirement you have to go its also going to depend on do you have other investments if youre already investing. And this 401k is in addition to it you want to keep that in mind you may want to be. More aggressive but in this menu youre gonna see some things like this twenty thirty twenty lets just go forty. Five and twenty fifty five youre just gonna see a bunch of 20s and then the number well this is. The year its called a target date retirement fund and these are the easiest things to invest they really hope.
You invest in these you basically go how what year is closest to when im gonna retire lets say its. This one then thats the fun you would pick and you would invest in that one right those will be. Some of the options youre also going to see things that say like blue chip all right those will be. More aggressive a lot of times those are more aggressive theyre the way theyre structured youre gonna see s&p 500. Index right is their index funds youre gonna see in there as well you might see small cap im just.
Trying to throw out some of the words that you might see you might see value could be anything you. Might see growth these are key words right theyll be followed by like the blackrock super duper value fund the. Fidelity super duper small cap index fund something like that right these are just the main code words youre going. To be looking for bottom line is if you have no idea what all this stuff means look at these. Find the date thats closest to your retirement thats more than fine for now as you get a little bit.
More savvy and you want to tweak a little bit then youre gonna go look at these funds here s&p. 500 by default a lot of people choose that because its an index fund small caps gonna be more aggressive. Value doesnt necessarily mean conservative but its definitely not aggressive so you might want to there depends on what type. Of value fund it is blue chip growth funds right theyre gonna be more aggressive and anything that says growth. Is going to be more aggressive youll see it in the return the performance there now if you ever see.
Something where theres a mix of words small cap value s&p 500 growth maybe not so much that one you. Might see blue chip growth all theyre really trying to do is identify that these things are really aggressive in. There you can also look at the long term returns dont look at what it did last year dont look. At what its done this year look at what i did over the last ten years last five years even. At whatever your choices are you want to see the long-term growth of the fund doesnt really matter like this.
Years off to a great start so you could be mislead into picking something thats just having a good year. Right so look at the longest term performance you can and thats really it right you put money into the. 401k if theres a match and you just want to know what the match is how much do you need. To put in if the match is 6% you got to put in 6% thats like saying im giving away. $100 to anybody that gives me $100 and then ill put both of the hundred dollars in an account thats.
Like saying ill ill give you a 50 you only have to give me 50 right now i dont do. That take the 6% that was a really bad analogy but i tried so you put in up to the. Match then when it comes time to pick the investments if youre sorry we put the money into the match. And then you put it hopefully into the roth option thats why i was trying to say and thats all. Post tax then when it comes time to choose the investments youre going to look for those code words there.
Right look at the returns and if you dont want to do the homework just simply pick a target date. Fund theyre available in every 401k now by the way w.
Conclusion – How To Access My 401K
The purpose of this post is to assist people who wish to learn more about the following – your 401k – how do you use it? what are the 401k withdrawal rules?, ways to get money out of a 401(k) – working or not, how to find an old 401k, the great resignation – what to do with your 401k money after you quit, take the penalty-free 401k withdrawal that the cares act allows?, accessing retirement accounts early | roth ira conversion ladder explained | early retirement hack, can i access my 401k?, how to open a 401k: so you don’t have to work every day until you die, meadows, how to access your 401k account., 4 strategies to get the most out of your 401k plan, how to use your 401k to buy a house!, get the money out of your 401k asap || should you leave your money in your 401k or move it to an ira, cares act 401k withdrawal update | other ways to access your funds, so you want to be a 401(k) millionaire? here’s how to do it, according to fidelity, covid-19 401(k) no penalty withdrawal – how to take advantage.
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