A 401(k) is a retirement savings plan that lets you invest a portion of each paycheck before taxes are deducted depending on the type of contributions made. Because of 401(k) tax advantages, the federal government imposes some restrictions about when you can withdraw your 401(k) contributions...
What is a 401(k)? When it comes to saving for retirement, being prepared is key. If you’re working for a company that offers a 401(k) retirement plan, it can be a great option to help you save for your future. Maybe it’s your first time setting up a 401(k), or maybe you...
A traditional 401(k) plan is sometimes referred to as a pre-tax 401(k) plan. You contribute to the plan with before-tax dollars. Because you don’t pay taxes on the money you put into the plan, you must pay taxes (both federal and most state income taxes) when you withdraw it. ...
Learn the basics of 401(k)s, employer-sponsored retirement accounts that offer several tax advantages. 0 seconds of 0 secondsVolume 90% , Length: Video:What Is a 401(k)? Read Transcript Want more ways to save for retirement? See how an IRA can help ...
How 401(k) matching works What's the average 401(k) match? Do employers match contributions to a Roth 401(k)? 401(k) contribution limits What is vesting and how does it work? You may also like Roth 401(k) vs. 401(k): Which one is better for you?
What is a self-employed 401(k) plan? Are you self-employed? Here's what you need to know about solo 401(k)s and how to open one. A self-employed 401(k) plan — also called a one-participant 401(k), individual 401(k) or solo 401(k) — is a type of retirement account for...
Contributing to a 401(k) plan via payroll deduction makes it easy and convenient to regularly save for retirement. A 401(k) plan is a workplace retirement savings account. 401(k) accounts get their odd name from the section of the tax code that created and governs them. Workers and emplo...
A Roth 401(k) is one of the two major types of 401(k) plans, and it offers significant tax benefits for workers saving for retirement. The Roth 401(k) is an employer-sponsored plan, meaning that you can use the plan only if it’s offered at your workplace. The other major plan ...
A safe harbor 401(k) is similar to atraditional 401(k), which provides a tax-advantaged way for employees to save for retirement. The safe harbor 401(k) must offer some kind of employer contribution to the employee’s account, and it can take one of three forms: ...
It’s a relatively low-interest loan option that can help cover a large expense, but tread lightly. Getting a 401(k) loan can mean long-term retirement losses or penalties if you’re unable to repay the loan. What is a 401(k) loan? Employer rules vary, but 401(k) plans typically ...