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Old 06-19-2022, 01:01 PM
 
Location: USA
9,144 posts, read 6,196,866 times
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Quote:
Originally Posted by jiminnm View Post
401k contributions are considered pre-tax, meaning the contributed funds have not been taxed as income. So, there can be no tax deduction from income that has not been taxed.
Quote:
Originally Posted by lieqiang View Post
No. By it's nature the assets in a 401k can't have a tax basis until they aren't in a 401k.

Not completely true. Many 401(k) plans allow after- tax contributions which do create a cost basis in the plan.

In addition, net unrealized appreciation of company stock in the employer sponsored plan can be a source of long-term capital gains rather than being taxed as ordinary income.

https://www.forbes.com/sites/kristin...h=49841fd64373
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Old 06-19-2022, 02:22 PM
 
Location: 5,400 feet
4,867 posts, read 4,807,826 times
Reputation: 7957
Quote:
Originally Posted by Lillie767 View Post
Not completely true. Many 401(k) plans allow after- tax contributions which do create a cost basis in the plan.

In addition, net unrealized appreciation of company stock in the employer sponsored plan can be a source of long-term capital gains rather than being taxed as ordinary income.

https://www.forbes.com/sites/kristin...h=49841fd64373
I am aware that there are post tax 401k plans. I had one. But that was not the issue raised by the OP.
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Old 06-19-2022, 03:16 PM
 
15,439 posts, read 7,502,350 times
Reputation: 19371
You cannot deduct losses in a 401k. Period. In any case, even if the money was not in your 401k, you would not be able to deduct the losses unless you sold the securities, and there are limits on how much you can deduct for losses in any single year. Ups and downs are part and parcel of the process. I've watched my 401k bounce up and down $50,000 in a week.

The best advice, assuming you are not is some really awful plan that only has garbage choices for investments, is to get over it, and don't worry about short term performance. Just keep contributing. It will grow over time.
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Old 06-19-2022, 03:32 PM
 
37,315 posts, read 59,888,047 times
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Quote:
Originally Posted by juggie View Post
Is there a provision to claim Tax Deductions for 401K losses. Say someone invests 20.5K into 401K and at the end of the year, the value is only 14-15K, what options does the investor have?
Cry
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Old 06-19-2022, 03:45 PM
 
2,603 posts, read 2,291,657 times
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Quote:
Originally Posted by juggie View Post
I started from March, so 3 months till date.

It has tanked 2k+ in investment of $13.5k, sofar. So 15% so far despite me trying to move them to low returns stable funds with current 401K.

How can I force my plan provider to move my funds into a stable portfolio? so that I see stability in my 401K? Seems they are just burning my money without any care in the world. TransAmerica is my current 401K provider.

S&P then 4200
S&P now 3674
(12% decline)

Btw, I am not young. I am 47 years old.
47 is young, you have 20 years before you retire. Stop panicking, this is not the first time the market is substantially down, and it won’t be the last. Take a look at 2008. Trans America can’t force you to hold a particular investment, you certainly have choices.
At 47, I would be mainly in the stock market and just ride it out. We are all in the same boat, at least you are working and dollar cost averaging into the market.
“Be brave when others are fearful, and fearful when others are brave.” At least you didn’t pour your life savings into Bitcoin like many people did.
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Old 06-19-2022, 04:17 PM
 
30 posts, read 14,701 times
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Quote:
Originally Posted by WRM20 View Post
I've watched my 401k bounce up and down $50,000 in a week.
Atleast you watched it up. I haven't seen any ups. It's been down south for me since I started. Maybe one odd week a rise of few hundred $. That's it
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Old 06-19-2022, 04:50 PM
 
13,194 posts, read 28,306,718 times
Reputation: 13142
Quote:
Originally Posted by juggie View Post
Atleast you watched it up. I haven't seen any ups. It's been down south for me since I started. Maybe one odd week a rise of few hundred $. That's it
Let’s clarify “haven’t seen any ups since you started it” means IN THE 3 MONTHS since you opened this 401k.

Please chill.

You’re making a mountain out of a mole hill.
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Old 06-19-2022, 07:00 PM
 
Location: Kansas City North
6,819 posts, read 11,550,944 times
Reputation: 17158
As others have said, quit watching your balance! Don’t look at it until December 31.
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Old 06-19-2022, 09:00 PM
 
1,137 posts, read 1,098,826 times
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Quote:
Originally Posted by Okey Dokie View Post
As others have said, quit watching your balance! Don’t look at it until December 31.
December 2040 is probably more suitable
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Old 06-20-2022, 07:07 AM
 
30 posts, read 14,701 times
Reputation: 30
I have held back on the remaining $7K investment into this 401K. Please let me know the right time to let go that hold and to move forward with the remaining $7K. I have till beginning of November 2022 to let go off this hold.

I can let go the hold anytime. No constraints for me. I just want to see a good positive return. I hope the markets will recover and get into a northward trend thereon.
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