401k for Dummies - What is a 4o1k?

What is a 401k for dummies Are 4o1k plan really any good? 1-800-566-1002 http://www.RetireSharp.com. 4o1k plans are the most used types of retirement accounts. Understand the basics of a 401k plan for dummies and avoid the most common mistakes that individuals make when setting up their accounts. 401k Retirement Plan for dummies A 401k is a type of employer-sponsored retirement plan. It is a way for employees to save for their retirement by having a certain percentage of their paycheck withheld by their employer and deposited into the company's plan. Employers can choose to match the employee's contributions and thereby share the profits of the company with their employees. The plan is usually operated through an investment firm. How does a 401k work for dummies? Your employer withholds a certain amount of your paycheck and deposits that money, along with any matching contributions, into your 4o1k account. The money in the plan is invested in various financial instruments, such as mutual funds. The money stays in the account until you reach a certain age when it is legal to withdraw the money, or until you meet any of the several exceptions to the age rule. Since the money will be in the account over a period of years, this causes the account to earn money through compounding, so your account grows not only through your regular contributions made from your paycheck but also by earning interest or dividends. How do I make contributions to a 401k for dummies? You make a contributions through your employer. If you decide to participate in the plan, you will determine what percentage of your paycheck that you want to be deposited in your account, and your employer will withhold that amount from each paycheck you receive. The employer then deposits the withheld money into your account, along with any matching contributions, so contributions are made to your account each pay period. When can I withdraw my money from a 4o1k? You can withdraw your money at any time. However, if your withdrawal is an early distribution, you will have to pay an extra tax on the withdrawal.3 What is an early distribution? An early distribution is any money taken out of your 401k before reaching age 59 ½. Early distributions are subject to a 10% tax penalty in addition to regular income taxes, so if you withdraw $5,000 when you are 45, you will have to pay $500 as a tax penalty. However, as discussed in the following question, there are some exceptions that allow you to withdraw money before age 59 ½ without owing the 10% penalty.4 If you leave the company, you can choose to leave your 401k as it is, or roll it over into a Traditional IRA. If I quit my job where I was participating in a 401k for dummies plan, what happens? The money you contributed to the 401k is always yours, regardless of how long you have worked for the employer. Generally, an employer requires that you work a certain number of years before you are vested, which simply means that you are legally entitled to the employer's matching contributions. Therefore, depending on your employer's rules, you may or may not be able to keep the employer's matching contributions. Please make sure to subscribe to our YouTube channel for the most updated videos. Thanks for watching! Related search terms: What is a 4o1k plan? 401k plan for dummies 4o1k for dummies 401k definition for dummies Best 401k for dummies Are 4o1k plans any good? https://www.youtube.com/watch?v=fKbJdPn2Fi0

Comments

1. One of the advantages of an IRA is having access to a wide range of investments, often more extensive than 401(k)s. When choosing investments, it's usually a good idea to think carefully about your own situation. Are you nearing retirement and more focused on investing for income? Or perhaps your needs are geared towards investing for growth? Clarifying your goals can help you select the right type of investment. Many IRAs allow you to choose from individual securities, such as stocks, bonds, certificates of deposit (CDs), mutual funds, exchange-traded funds (ETFs), or a "single-fund" option, where the asset allocation is done for you. read more about Gold IRA http://GoldAndSilverForLife.com/partner?p=romeoicq&w=webinar
2. Thank you! Very informative! Bless
3. Be wary.  There are so many misleading YouTube "info" videos used to gain sales.  All 401k Trusts are different and each employee's situations and needs are unique.   Whatever type of investment account you have, you should have a conservative to more aggressive investment options available.
4. What is better 401k or a Roth IRA?
5. Thank you very very much!
   It appears that the match your company offers will be sucked up by fees and taxes. You can avoid all of that by simply putting your money in a savings account over a long period of time. This is all a scam to grease the pockets of wallstreet.
6. you might as well have not written anything. these shitty half ass writing is useless. good narrative tho
7. what if you 38 just started and make 40,000 a yr how do i know how much to put?
8. can i save money in my bank savings account for 40 years? lol so. for get 401 k. mrs business tax plus interest = to same amount. bank account VS 401k
9. what's with the cryptic handwriting?
10. Can a 401k account be moved into a "Retire Sharp" account?
11. If retirement insurance contracts are so great then why are they not the mainstream thing to do?
12. horrible graphics
13. 401k is scam orchestrated by Wallstreet. The government has purposely kept interest rate too low for too long to push people to the market, which is entirely speculative. People need to wake up from this scam. Retirement age will go up, Alan Greenspan has been writing about it all the time.
14. This was awesome. I was struggling with what 401K was and how it worked. This video helped me out tremendously! The chicken scratch was no problem at all. Great explanations!!
15. Thx for the info!
16. thank you for breaking things down for me!! I understood your "chicken scratch" just fine lol!!
17. Good info. 2yr old's handwriting ruined it.
18. thank you
19. 401K for dummies means I am COMPLETELY IGNORANT on the topic, you start the explanation ASSUMING I already knowWRONG TITLE!
20. good information but the writing is horrid... next time do something more understanding...