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The federal Employee Retirement Income Security Act of 1974 — or ERISA — prevents creditors from making claims against funds in retirement accounts like 401(k)s, protecting the money you paid ...
The 401(k) has two varieties: the traditional 401(k) and the Roth 401(k). Traditional 401(k) : Employee contributions are made with pretax dollars, lowering your taxable income.
Their company could put another $4,000 into their 401(k), giving them a total annual contribution of $27,500 even though their take-home income only goes down by $18,330.
In a traditional 401(k) plan, introduced by Congress in 1978, employees contribute pre-tax earnings to their retirement plan, also called "elective deferrals".That is, an employee's elective deferral funds are set aside by the employer in a special account where the funds are allowed to be invested in various options made available in the plan.
You can put it to work through passive income streams, contribute to growing a retirement fund or pay down high-interest debt. See our guide to the five smartest moves to make with your $10,000 .
The Roth IRA can set you up with tax-free retirement income, ... If you take earnings out early, you can be hit with taxes and a 10 percent bonus penalty. ... funds to be held in a Roth 401(k ...
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