Learn the basics of 401(k)s, employer-sponsored retirement accounts that offer several tax advantages.
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 employers can both make deposits to the account until they hit annual contribution limits. The federal government provides ...
401(k)s let you contribute part of each paycheck into a retirement account, where you can generally invest your assets in various types of mutual funds, such as index funds or target date funds. The ability to invest for retirement is a major incentive to use a 401(k)—investing your mo...
With a basic 401(k) plan, employees contribute a portion of their pre-tax wages into a retirement account. Their employer may match their contribution, either fully or partially, or make non-matching contributions. The taxes on contributions and any earnings are taken when withdrawals are made....
A solo 401(k) allows self-employed people to save more for retirement. Find out if this tax-advantaged retirement account is right for you. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website...
What is a 401(k) plan and who is eligible? A 401(k) plan is an investment account offered by your employer that allows you to save for retirement. If your company offers a 401(k) plan, it may have certain eligibility requirements. While these requirements vary by company, some employees...
A 401(k) plan is a tax-advantaged retirement account with a company match and a choice between Roth and traditional 401(k) contributions.
A401(k)match is when an employer contributes a certain amount to an employee’s retirement account based on how much the employee contributes. Matching contributions from employers are fairly common, and taking advantage of them is an important part of saving for retirement. Experts sometimes refer...
What Is an IRA? An individual retirement account (IRA)—known as an individual retirement arrangement by the IRS—is a long-term, tax-advantaged savings account that individuals with earned income can use to save for the future. The IRA is designed primarily for self-employed people who do ...
A 401(k) plan is a tax-advantaged retirement account offered by many employers. There are two basic types—traditional and Roth. Here’s how they work.