what do these 401k categories mean

my 401k plan contains a report page that shows these categories and I don't know what these mean, with the exception of the Before Tax Savings and Co Matching Cont

Before-Tax Savings = this means money I have saved Co. Matching Cont. = this means money company matched Co. Stock Cont. = company contributed stock to me (?) SOP Transfer Account = not sure what this is Service Related = company gave me money based on years there (?) Profit Sharing Cont. = company gave me money based on profits (?) Company Unrestricted = not sure what this is Company Restricted = not sure what this is

in addition, is it important I know how much is in each category for some tax calculation later in life?

Reply to
amy
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It sounds like you need to contact someone at your company or 401(k) plan and complain that you don't understand your statements. Frankly, I don't have a clue, either; this is probably all specific to your particular company's plan.

No, unless you have made both before-tax and after-tax contributions to your plan (generally a bad idea precisely because of the additional bookkeeping requirements). The bottom line is your vested balance in the account.

-Sandra the cynic

Reply to
Sandra Loosemore

Please don't take this wrong but either you or your company have failed at communicating (or receiving) information you should have about your plan. I would suggest you question your HR rep or your supervisor for full information and look at the materials from the

401K provider (whoever sent you the report) that you should have gotten at some point. Call the 401K provider and ask for a complete explanation of the plan and the report. Note that the nuances may be specific to your employer and different in other companies.

Generic answers to some of your questions:

Co. Stock Contribution: Company matching contributions, profit sharing, and other type awards are often in company stock. The distinction is important as there may or may not be restrictions on when and how much of this you can sell. Also if you take a lump sum distribution or roll over the 401K when you leave the company the tax treatment of company stock is different from other parts of your account (Google Net Unrealized Appreciation).

SOP: Possibly refers to stock from a company Stock Ownership Plan. You would have to consult your management for an explanation for how this would end up in a 401K.

Service related: ?

Profit sharing: Many companies make an additional contribution to the

401K based on company profit success. Usually this is in the form of company stock.

Company unrestricted and restricted: Possibly this refers to deferred compensation in stock often awarded at management levels in lieu of immediately taxable compensation. The ability to negotiate such stock may be "restricted" or vested ("un-restricted"). Not sure how this is part of a 401K plan. Are you sure the administrator is not also reporting company accounts besides the 401K, per se?

Note that if you have actually been awared any of the "odd" items such as profit sharing, restricted stock, stock ownership plan, etc. you would normally receive separate notice or announcement from your company of those actions.

Hope this helps.

Reply to
redmonds

I am only guessing. But here goes.

The amount taken from your paycheck to apply to your 401K. This is done before taxes.

The amount your company pay to your 401K as a matching contribution (I am thinking "cont" means contribution).

The shares of company stock given to your 401K as part of your company's matching contribution.

???

Yes. Seems likely.

Don't know.

Yes do talk to your benefits office. Or maybe there is a web site explaining all that.

Maybe, maybe not. I would keep track of each category.

Reply to
PeterL

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