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401k Plan Summary Plan Description Provides Information About Your 401k - YouTube
Channel: Martin James, CPA - Tax Jiu Jitsu
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hi marty james here
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i want to talk about your 401ks
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one of the common things that i've found
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is that when we start asking questions
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about
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the 401ks you have people
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really don't know what features are
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inside those
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so and most people don't even know what
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the summary plan description is so the
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summer
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the summary plan description is
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a document that in you know in regular
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english as opposed to the plan document
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which is legalese
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uh kind of describes the features that's
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in the 401k when you can access your
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money
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you know how you make your contributions
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and such
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so what you really need to do is
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go to the the site that for the
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administration
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of your 401k and pull down the summary
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plan description
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and sometimes they have a summary of the
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summary plan prescription
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and you're looking for certain things
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you're looking for okay you know
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every 401k will have pre-tax
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contributions but then you're also
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looking for
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do i have the ability to make a roth
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contribution into my 401k
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i'm looking for after tax contributions
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can i do that
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i'm looking for the implant conversion
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feature which you might say
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in plan rollover i'm looking for those
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things to see you know why i have
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available and how i can take advantage
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of these things
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if i put money into my after tax account
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if it's available
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do i have the ability to pull it out
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before age 59 and a half
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the other thing you will look for is at
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age 59 and a half are you free
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you know to actually move money from
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your 401k
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into you know an ira it's real important
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just to know how the money can be moved
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around
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also you want to look and see if it will
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actually accept
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rollovers from uh
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other from my former employer let's say
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i was working for a company
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i've got a hundred thousand dollars in
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that 401k and i go to another
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company's forum another company with a
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401k
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will they allow me to roll that money
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into
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that plan and now they will account for
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that separately so
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a lot of times the plans will allow you
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to actually
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roll your contributions back out pre-59
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and a half
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into an ira when i say contributions
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your rollover amount from your
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former you know ira or employer because
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sometimes it makes sense uh if you're
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trying to do some of the raw strategies
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to
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not have any traditional ira money you
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know outside that 401k
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you know you can actually do a lot of
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things that you can't do
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tax effectively with your money sitting
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in the ira
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so i encourage you to take a look at
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your 401k
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uh summary plan description give us a
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call
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uh when you get that and you know we
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will be sure to help you interpret some
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of the things and what it means to you
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because uh there's some tremendous
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planning opportunities
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and let's say you looked at your uh
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summary plan description when you first
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started working
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well plans have been updated uh
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quite a bit and plans are continuing
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adding uh
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these new features and you need to be
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aware of whether
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if they've added them or not so again
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you know
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take a look at that when you see some of
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these neat things that's inside there
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give us a call and we can show you how
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to make that work
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into your best advantage
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the other thing is be sure to subscribe
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to this channel because
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i think there's going to be some pretty
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cool stuff we're going to be pumping out
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here
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things you may not see elsewhere from
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other financial advisors or cpas
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because sometimes it's not in their best
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interest for you to do some of these
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things so
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just give me a call or reach out to us
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send us an email
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and be sure to subscribe
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you
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