401k question

Compass
new3212

Go to company page Compass

new3212
Apr 6 10 Comments

1. Can you always guaranteed withdraw money instantly without any delay?
2. Whats the term of company matching? Assuming its 1:1, if I put 10k and get 10k from company, but in the next 2 years I withdraw, can I withdraw 20k or just 10k?
3. What kind of stock you can invest on 401k, similar to robinhood?

Newbie here 🙏

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  • No sweet baby Jesus just no. Read. Learn
    Apr 6 1
  • New
    HNlC

    New

    HNlC
    3. normally , ie mostly, 401k programs are extremely limited and you can only invest in a handful of mutual funds. it takes 24 hours to sell a position so yes you can withdraw quickly (at a huge penalty as you are aware).

    2. most companies “vest “ you at say 6% per pay period. so if you exceed that amount then the rest goes unmatched. of the part that is matched that also might be less than 100%. once the match goes in, it is yours and can be withdrawn
    Apr 6 3
  • Amazon
    snsskak

    Go to company page Amazon

    snsskak
    1. You can sell any time just like any other stock.
    2. You can sell 20K.
    3. Depends on you employers 401K plan.

    However, you shouldn't sell. Because you will have to pay tax + additional penalty.
    Apr 6 1
  • Amazon
    pepsidawg

    Go to company page Amazon

    pepsidawg
    1. No that’s not what a 401k is for. You can’t pull money out. If you do it has to be for medical expenses, a home purchase or education and you have to pay taxes and a penalty on it.
    Apr 6 0
  • Thermo Fisher / IT
    Desivibes

    Go to company page Thermo Fisher IT

     Desivibes
    1. no
    2. Depends on company terms. Some companies has a vesting period of for eg- 2 years. If you leave before 2 years, you won't get Any match they have made.
    3. Stock options depends on company offering 401k. For eg- t Rowe offers variety of index funds plus bonds and money market options. You can opt to not make any of these selections and they'll put all 401k into a retirement plan based on your current age and a default retirement age.
    Apr 6 0