When do I have to start taking money out of my 401k?
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401k
A 401k is an employer-sponsored, long-term savings plan that is intended to help you sock-away money for your retirement. A 401k offers significant tax breaks and has a few drawbacks. The money you put away now to be used later after 59 ½ years of age or at retirement is not taxed until it is distributed. Some companies match part of the dollars that you stash away. Your retirement savings are increased through these employer matching contributions. You can borrow against a portion of a 401K, as long as you pay it back plus the low interest. Otherwise, if you tap into your savings before 59 ½, you pay penalties for early withdrawal and the early distribution is also treated as regular income for tax purposes.
When can I take money out of my 401k?
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What is the difference between a 401k and an IRA?
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How much can I contribute to my 401k?
The amount that an individual investor may contribute into their 401k plan varies both by the participant’s age and the given tax year. During 2009, individuals age 49 and below can contribute up to $16,500 into their 401k plan, while participants age 50 and older can contribute up to $22,000.
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What is a rollover IRA account?
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