Napkin Finance is a quick and easy way to learn what is 401k, 401k Loan, Retirement, IRA vs. 401K, and Traditional IRA without dying of boredom.
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...
The basic difference between a traditional 401(k) and a Roth 401(k) is when exactly they’re taxed. With a traditional 401(k), your contributions are made with pre-tax dollars. Then, your contributions and earnings grow tax-deferred—you don’t pay taxes on the money in your 401(k) ...
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 ...
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 self-employed 401(k) plan is a type of retirement account for business owners with no other employees. Getty Images Most workers are at the whim of their employer when it comes to retirement accounts. But when you're self-employed, you have control. You can choose which retirement ...
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...
A safe harbor 401(k) is a retirement plan that allows a company to avoid the regulations and expenses associated with nondiscrimination tests typically required of a 401(k) or other retirement account. A safe harbor 401(k) can simplify the process for a company looking to roll out a retirem...
What is the difference between a traditional and Roth 401(k) plan? There are two common kinds of 401(k) plans: traditional and Roth. These plans have some similarities: They are subject to the same annual contribution limit and may offer the same investment options. However, traditional and...
“Your 401(k) plan documentation is the best source to find out what qualifies for a hardship under your plan’s rules.” Arielle O’Shea, investing and retirement specialist Be sure to do your research to understand if a law or policy change will make it more or less advantageous to ...