What is a “401k”?
Typically, a 401k plan will be offered by your employer. You can make a contribution from your paycheck to your plan. You can make this gold IRA review sites contribution before or after taxes depending on which options you have. Sometimes, your employer may match a portion.
When you have enough money saved you can roll your 401k into a Traditional IRA, Gold IRA or Roth IRA. This can help you get a higher payout when you retire.
Saving for retirement is a priority for most people. The country is changing so fast that there will likely be no Social Security by the time most people reach retirement. It is therefore important to save for your retirement. A 401k plan will allow you to save the most money.
What are the benefits of having a 401k plan?
You have many benefits to using a plan like a 401k to save for your retirement.
Your employer will match part of your contribution if you have a 401k plan. Employers often match 50% of the first 6 per cent of any money you save. If you don’t take advantage of your 401k, you are effectively giving away free money.
Matching contributions are not offered by your employer, but there are tax advantages that can make a plan with a 401k worthwhile. Contributing a portion from your salary to your plan will reduce your tax bill. This is because the money you put into your 401k is taken before any taxes are applied. This reduces your taxable income which is great for you.