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...
If you have the opportunity to get a company match on your 401(k), do everything in your power to get the maximum amount. A company 401(k) match is essentially free money. Not only that, but it’s free money that will grow tax-free until you withdraw it during retirement. “The b...
A 401(a) plan is an employer-sponsored money-purchaseretirement planthat allows dollar or percentage-based contributions from the employer, the employee, or both. The sponsoring employer establishes eligibility and thevestingschedule. The employee can withdraw funds from a 401(a) plan through a rol...
What Is a SIMPLE 401(k) Plan? A SIMPLE 401(k) is a retirement savings account offered by small business employers with 100 or fewer employees.1 The SIMPLE 401(k) works just like a regular 401(k) plan, combining it with the simplicity of a SIMPLE IRA with a few minor changes. Empl...
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.
A SIMPLE IRA plan is a retirement plan for small businesses with fewer than 100 employees. Here's how SIMPLE plans work, how to establish one and rules to know.
A pension plan is a retirement plan in which an employer makes contributions to a fund that provides a fixed income to employees upon retirement. What is a 401(k) plan? A 401(k) plan is a retirement plan that allows employees to make pre-tax contributions to an investment account, with...
A partial 401(k) match is when an employer contributes a portion of whatever the employee contributes to their retirement plan. For example, the employer might agree to match 50 percent of the employee’s contribution up to the first 6 percent of the employee’s pay. This means that if yo...
What Is a 401(k)? A 401(k) is atax-advantagedretirement savings plan. Named after a section of the U.S. Internal Revenue Code, the 401(k) is an employer-provided,defined-contribution plan.1The employer may match employee contributions; with some plans, the match is mandatory. ...
A Roth 401(k) is an employer-sponsored retirement savings account that is funded with after-tax money. As long as certain conditions are met, withdrawals in retirement are tax free.