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11-13-2008, 10:29 AM
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#1 |
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Registered User
Join Date: Nov 2008
Posts: 1
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I need Help with 401k plan
I set up a Traditional IRA account for myself when I was 40. I am currently reaching the age of 45 soon. My question is this, I work for Wal-mart and they offer a 401k plan. Should I take the Traditional IRA account and roll it over to the Walmart 401k? Or should I keep the American Balanced fund-A where it is and open up a seperate account with Wal-mart?
Also would it be wise to invest in there stock purchase plan? Thank You.........for any advice given. Vivian585 |
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11-13-2008, 11:30 AM
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#2 |
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Registered User
Join Date: Oct 2001
Posts: 1,586
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Vivian585,
You are taking the right action as you plan for your retirement. The first thing that comes to mind will the Wal-Mart 401k plan accept your ira funds? Most 401k plans will not accept transfers from IRAs. An IRA will give you more investment choices than a 401k plan's limited set of investment choices. Contributing to the 401k plan, the amount you can contribute is greater than with an IRA. With a 401k plan you get the tax deduction as you contribute to the plan, instead of waiting until you file your tax return to receive the tax deduction. When you do contribute to the 401k plan, or to an IRA Do Not Forget To take the Savers Tax Credit if you qualify. Wal-Mart's stock purchase plan (spp) may be OK just so long as you do not hold more than 10% of your investments in WM stock. That 10% includes any WM stock in your 401k account. Recall how a few years ago many Enron employees were very heavy into Enron stock when the company colapsed. Don't let that happen to as a Wal-Mart employee. |
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12-24-2008, 04:41 AM
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#3 |
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Registered User
Join Date: Aug 2008
Location: USA
Posts: 27
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Hi,
It is probably best that you seek some professional advice before you make that final decision. You know these guys are experts and so, they can tell you about all the pro's and the con's. Mate, this is your retirement funds, and so can you afford anything going wrong. And do remember, these are troubled times and so many companies are falling too. I tried http://www.respond.com/financial-planners/find.html once and I can say that the financial advisors there seem good. Thanks & Regards. |
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12-24-2008, 11:53 AM
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#4 |
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Registered User
Join Date: May 2007
Posts: 124
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I agree with clydewolf: Keep your IRA: If you want to do some research, you might check on the following:
1. What are the admin fees for the 401k? Walmart's administrator is required to know this information; but it's suprisingly hard to know in many circumstances. IE: Are there fees taken out based on total assets in the plan? Fees could be taken by the IA, by the TPA, by the mutual fund family, etc. 2. What are your investment options. If the 401k plan is professionally managed, you may want to take that into consideration. Most investors do better under this scenario: I personally don't like professionally managed portfolios, but I think most people prefer them. This information should be compared between the 401k and the IRA. In most cases, the IRA will be the less expensive of the two plans. You then have to decide between the investments choices. Plannerinus' suggestion to hire a pro is also good advice. Most good IA's will charge $150.00 or more to review investment options and render advice. If you have more than $10,000, this would be money well-spent. |
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12-25-2008, 11:45 AM
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#5 |
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Harold Hecuba Productions
Join Date: Sep 2004
Location: New Berlin, Illinois
Posts: 934
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plannerinus - don't pretend like you're a consumer and that website means little or nothing to you. You have it listed as your homepage on your profile!
Please don't solicit on this forum...
__________________
jb IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment). |
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