A 401k is a retirement account that you can open with your employer for savings. The goal of this type of account is to continue to save over time to help support your future retirement.
You may not know what all goes into a 401(k) plan. That doesn’t mean you can’t get your setup or still benefit from this tax-advantage savings.
You may ask what is in it for you?
The most common benefit is an Employer match. First thing you should do is talk to your employer about what they offer. Then you can figure out if you can take advantage of any matching offered by your employer.
401(k)s are an excellent benefit to consider and can save you money in the long term, but they’re not without some pitfalls that will require attention from time to time – like maintaining minimum RMD. You can learn more about this by talking to any of our advisors.
401(k)s are a great way to save for retirement, but they come with some tradeoffs. For example, you could include a statement that says “For example, Withdraw of pre-tax contributions and or/earnings will be subject to ordinary income take and, if taken prior to age 59 ½, may be subject to a 10% federal tax penalty,
If you would like to learn more about 401ks send us a message, we would love to hear from you.
401 (k) plans are long-term retirement saving vehicles. Withdrawal of pre-tax contributions and/ or earnings will be subject to ordinary income tax and, if taken prior to age 59 ½, may be subject to a 10 % federal tax penalty.
Matching contributions from your employer may be subject to a vesting schedule. Please consult with your financial advisor for more information.