401(k)s | Finance & Capital Markets | Khan Academy

401(k)s (and how they compare to IRAs). Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/life-insurance/v/term-and-whole-life-insurance-policies?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/ira-401ks/v/roth-iras?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: The government apparently wants us to save for retirement (not always obvious because it also wants us to spend as much as possible to pump the economy going into the next election cycle). To encourage this, it has created some ways to save that avoid or defer taxes: IRAs and 401ks. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. fucking cunt
2. Depending on your salary you can also be put in a lower tax bracket because you're maxing out the 401K.
3. a couple of things:
   1) Social security tax and medicare tax (fica tax) aren't deferred only federal income tax is deferred.
   2) 401(k) accounts are typically managed by greedy financial firms where they charge unreasonably high fees, typically 1% higher for passive investment vehicles. This means that your 50% company match pretty much is eaten by financial firms.
   3) Thus when you change job make sure that you shop for a low-fee 401k providers.
4. hey khan, i have a question. you said that there is a 16500 limit for your 401k,,, is that the limit you can add to your 401k per year or is that your ENTIRE 401k limit?
5. Sal, what happens if I leave my employer?
6. Thanks, I never looked into this, now I know.
7. why the hell u have 1.3 milion subs and only 640 views, 26 likes and 4 comments (5 now)??? bro, i got less than 50 subs and more views than u! this is so weird...
8. Thank u! :-)
9. I think one cannot just borrow it for any reason... only a first time home buyer, a college tuition, economic hardships etc qualify under this program
10. Great thanks.
11. Thanks Sal! You're the best!