401(K) and Defined Contribution Plans: Maryland 401 K Attorney
401(k) plans are a type of defined-contribution plan that offer deferred tax benefits. 401(k) plans are very popular and usually provided by employers. Employees may benefit by contributing a portion of their pre-tax income into the plan which the employer may match up to a limit. While 401(k) plans are relatively common, a Maryland 401 K lawyer can tell you that they can also be very unclear and full of tax traps for the unwary.
When You Need to Hire a Maryland 401 K Attorney
There are some common situations where you may want to contact a Maryland 401 K lawyer to learn about your rights in a 401(k) plan. Some common situations include:
You can make pre-tax or post-tax contributions to a 401(k) plan. Your gains from a 401(k) are typically tax-deferred meaning that you won’t have to pay tax on it until a much later date. Participants in a 401(k) may have the option of designating a contribution as a Roth 401(k) deduction. In this case, you make after-tax contributions, but your distribution may be tax free. An attorney can help advise you on whether this option is best for you.
Many 401(k) plans have a force-out provision if you have too little money invested. If you believe you are being forced out for an improper reason, you should talk to an attorney.
If you make an early withdrawal of your funds from a 401(k) plan, you could face severe penalties. However, there may be cases where you may be permitted to make an early withdrawal penalty-free. Your 401(k) attorney can help you examine these circumstances.
While early withdrawals of 401(k) money may be subject to a tax penalty, rollovers from one qualified plan to another should be penalty-free. An attorney can advise you on any tax consequences of your rollover.
Contact a Maryland 401 K Attorney
To learn more about your rights and responsibilities regarding a 401(k) plan or other defined contribution plan, you will want to talk to an attorney. Contact an attorney at H&H LawWorks, LLC by calling 240-403-2693.