My wife's company just started a 401k for all their employees. They match 4% of your salary so we really just got a 4% raise! Very happy!

Lexie wrote: Good point Wanderer. Also, be sure the beneficiaries are aware they are beneficiaries!! I heard just the other day that insurance companies have thousands and thousands of dollars unclaimed because the holder of policy didn't notify the beneficiary. I need to go back and look at some of my documents and make sure I have done this properly!

I had to be reminded of this. I made sure my wife was the beneficiary of everything I had just in case.

Good point Wanderer. Also, be sure the beneficiaries are aware they are beneficiaries!! I heard just the other day that insurance companies have thousands and thousands of dollars unclaimed because the holder of policy didn't notify the beneficiary. I need to go back and look at some of my documents and make sure I have done this properly!

In planning for the future remember the Last Will and Testament, Power of Attorney (as required), and the Health Care Directive (or whatever they call it now). Careful estate planing will not saddle your children with your debts. Your estate will likely be responsible for your debts. In my estate, I allowed for all this so no one else is liable for my future.

Unfortunately, we all need to be realists about medical expenses during retirement. It is my number one concern when I think of the golden years. I can do without the trip around the world, but it's going to be devastating if we lose our house or saddle our daughter with tremendous debt because we can't pay for what comes our way medically.

Remember one point in retirement ... the guides floating in the market place lead to being able to sustain yourself at 66% of your working life style. What I have found is life makes it very difficult to achieve this reality (if it is a reality at 66%). A 401K should surely be worked to death as you will need every Penny for retirement. Be aware your age triggers the medical needs in the 60's and it can wipe you out fast! (sorry to be such a realist). GADS!

FrankN wrote: I am doing some research on 401Ks and would love to get people's information on if you contribute and typically what % of your salary do you contribute to? Does your company match?

My last employer would match up to 5% of salary at a dollar-for-dollar rate, although you could put more in unmatched. I didn't put in unmatched funds, but I always put in the 5% since I liked to get the benefits, and get the free money from my employer.

If its rolled, the rolled portion does not count toward the annual contribution limit. You still are able to contribute $5500 towards an IRA.

FrankN wrote: Once your husband leaves, you actually have a quite a few options. You can roll it into a IRA or keep it as is. I agree with MONEYES, call your provider and they will give you all of your options.

If it's rolled into an IRA, does that count toward the annual contribution limit or is it separate from that? I'm thinking it has to be a separate situation, but I wanted to ask just to be sure.

Breakinger wrote: I think this would be a personal preference. If you know that you could handle all of that money at once, then taking out the lump sum and getting all of the taxes out of the way in one shot would be the way to go. However, some people are used to getting paid a certain time each week or month so for them having it paid out in installments would be the best option. Plus, this way you don't see as many taxes taken out since it is spread out over a longer period of time. Have you ever considered rolling one of them over into the other 401K?

I have not considered rolling them over into another 401K. I suppose that is an option but I have not explored that avenue. Back to the taxes. Lump sum vs a little at a time. Will the tax amounts be the same or is one less than the other? Do you know?

Once your husband leaves, you actually have a quite a few options. You can roll it into a IRA or keep it as is. I agree with MONEYES, call your provider and they will give you all of your options.

Ohhhhhhh! Wow, do I feel like a ding dong! I thought a 401K had to be funded through an employer. I didn't realize that we could keep adding money once that employment comes to an end. Now this makes a lot more sense!

Just because your husband changes jobs, that doesn't necessarily mean you have to change 401k plans. Check with your plan provider. The only thing that will happen, typically, is that the money will not be automatically drawn from your bank account and the company won't match anymore. You can keep the plan on your own and put money in it on your own.

Is that something the investor has control over? My husband just went back to work this week and the company he will be with for the rest of the year offers a 401K, so I'm finally going to sign up for one. However, the odds of him working for this same company next year are slim and that will mean starting a whole new one. Regardless, I am going to take advantage of the option we have for this year.

Not if all of the 401Ks are at one site. I have 4, and it doesnt bother/complicate me at all. I guess it depends on the person.