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Essay About 401k

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401k is a mystery just starting life there many ways it would help you later in life. Retirement threw 401k was something I wasn't really thinking about before I didn't really know much about it thats why i researched it. 401k I knew was a retirement plan i just didn't know how it worked. 401k saves up money for you when you retire. How does 401 k work.? what is 401k?. 401k Is a qualified retirement plan established by employers to which eligible employers may make salary reduction contributions on a post-taxes and pre-tax basis. 401k is a retired retirement plan which allows eligible employers of a company save and invest for their own retirement on a taxed deferrel basis.401k is a retirement plan not a saving account.You will decide how much money you contribute into your 401k your paycheck will be smaller as a result not very small though its called tax benefits.Try to contribute as much as to qualify for your companys maximum matching contribution.The biggest advantage to 401 k is the tax advantages. 401 k offers five or more mutual funds. You decide …show more content…

It is your choice to get a 401k but it also lets you put how much money u want to contribute in your 401 k out of your paycheck. You can borrow up to half the money you contribute to your 401k. It offers you money when u get older and retire and aren't capable of doing anything you will have money to depend on when you get older to pay your expenses and your bills it will take care of you when u cant even really take care of yourself.You also get tax benefits from it which means the money that goes into your 401k goes untaxed into u go to withdraw it all then $5,000 of the money will finally be taxed which is something nice that they offer.Make sure you contribute as much as you can it will benefit

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