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| *Ostroff, Fair and Company>>>Financial Services |
If I work 2 different jobs, can I have 2 seperate 401K plans? |
Hi. I'm a teacher and am fairly young. My financial goal is to pay off my house in 10 years. I'm considering getting a job at night working at a restaurant to get experience on how to run a restaurant. I think eventually I might open one. I'd like to know if I can have 2 retirement plans with employer matches, etc. Also, I will get teacher's retirement; but, can I also get social security if I get enough "points"? Also, does anyone know how SS "points" are earned? (Is is calculated by dollars, time or what?) Will all this work reap the financial rewards I hope? THANKS FOR THE HELP! Yes, you can participate in two 401(k) plans. However, you can not exceed the annual limit (currently $15,500 per year). If you have enough to max out your 401(k) and want to save more, go for the Roth IRA. You can save up to $4,000 per year with that. As for Social Security, you will earn 1 credit per $1,000 per quarter you earn and a maximum of 4 credits per year. Basically if you earn $4,000 per year, you will earn the 4 credits per year. To become fully insured under Social Security, you need 40 credits. Also, to receive the full benefit, you will need to wait until you are full retirement age (approaching age 67 for individuals born more recently). Obviously, if you are saving a lot and are young, you have time on your side and you WILL reap financial rewards for this type of plan. Early retirement is always a good thing. Ron, Chartered Financial Consultant You can have as many as you want. yeah. you can, each company pays so and so to your plan or plans. Yes you can have more then one 401k for each job. I believe SS they tally up the points by how much money you make per year for the last 8 to 15 years. The more you make the better the social security... but I would not count of SS. I would sock as much money as I could in your 401K or a Roth IRA(real estate) so that when you are ready to buy that restaurant you can use the money in the Roth IRA to invest in it. Which is good and bad. Good because if you succeed then you are investing in yourself... Bad because if you fail (high percentage of restaurants fail within two years) then you loose your nest egg. You can find out lots of information on www.msn.com and www.about.com and finances and retirement options. And Goggle Real estate Roth IRA to find additional information.Good luck! can u ? Yes you can put into both 401k's HOWEVER, you can not put in more than the annual maximum. (15,500 for 2007, unless you are 50 or over than you can put in another 5,000 for a total of 20,500) You may be eligible for Social Secuirty if you pay into it however, it may be offset by the amount of pension you will be eligible for. Here is the link for SSA: http://www.ssa.gov/pubs/10045.html... 20 yrs payroll experience |
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