if i become self employed can i still contribute to my currrent employers 401k plan?

Question

I have a 401k with my current employer and i'm thinking of retiring and become self employed

Answer 1

Generally speaking, once you leave the employ of the company who sponsors your 401(k) plan, you are no longer entitled to contribute to it, or to borrow against it.

There are a ton of self retirement savings plans that you can contribute to. Take some time, do some cost/benefit comparisons and roll your current 401 into a new plan, and then contribute to it.

Answer 2

I artwork protection at a authorities construction for a organization that has a settlement with the gov't. i'm dealing with a similar component. My base pay is $XX.XX and that i'm given $3.75/hour for "well being and Welfare" ($3.75 x 40 hours x 4 week = $six hundred). This week, i change into suggested that I easily have 2 concepts; (A) take the agencies insurance(which will be larger than what I already pay) and the merely good stability($six hundred - fee of organization's insurance) will bypass right into a 401k or (B) not take the organization's insurance and all the "well being and Welfare" ($3.75 x 40 hours x fifty 2 weeks = $7800) will bypass right now right into a 401k. So, I both pay extra in insurance a month and lose in all likelihood $three hundred/month(i'm guessing) or I lose $six hundred/month and pay my own insurance out of my base pay. i do not comprehend the "well being and Welfare" area of it. To me, my well being and welfare is composed more suitable than merely insurance, i might want to imagine it would want to include food, clothing, preserve, etc. Neither of the options, does my agency make contributions to my 401k both. we've already lost a million safeguard this previous week as a results of those transformations, with others thinking leaving. If there is not sufficient protection guards accessible, the construction is compelled to close down. How does one merely make up for dropping $six hundred a month, $7800 over the approach an complete year for merely not wanting to pay extra for insurance rates with worse insurance!

Answer 3

No you can't, but what you can do is go to a local brokerage and open an account in "street name" (eg. Billy-Bob's Big Brokerage'n'Bank FBO Mr.Sensitive) and do a direct rollover into that account from the 401(k). That way you never have the money in your direct possession and you won't have to pay taxes & penalties. If you start a business, you may be permitted to make additional "tax-deferred" contributions, though there are some restrictions on "intermingling funds"...

Your other option is to leave it where it is, though you won't be able to make any more contributions to that specific account.

Answer 4

You can roll it into an IRA and make contributions. However, if you own a business there are even better options for retirement savings. You can shelter a lot more money. If you do start a business I'd open such an account. Talk to an accountant or CFP about it.

Answer 5

I do not believe so. In fact it will not be doing anything once you leave your employer. You will have to "rollover" the money into a IRA. This keeps you from paying taxes and the money continues to make money.

Whatever you do. DO NOT CASH OUT YOUR 401(k)!

You will be penalties plus taxes.

Answer 6

Yes, that is YOUR 401k not theirs, but they will obviously not match your contribution.