yes
What you do is deposit money into the 401k during your entire working career. Then, when you retire, the money is there for you to live on (provided that you don't withdraw any money). Social security and any pension you get is not enough to live on in this economy. With the 401k, you can have extra funds when you aren't working.
A person will invest in a 401K in order to save for retirement. The social security that is available during retirement is often not enough for a person to live comfortably.
Yes, You can lose Money in a 401k
A 401k is money in an account that has been contributed by you and established by your employer. When you leave that job, you can move the money to a new account which is called a 401k rollover.
The 401k is not taxed but the Roth 401k will be best in the long run as the money you get out wont be taxed then.
What you do is deposit money into the 401k during your entire working career. Then, when you retire, the money is there for you to live on (provided that you don't withdraw any money). Social security and any pension you get is not enough to live on in this economy. With the 401k, you can have extra funds when you aren't working.
You pay into your 401k through your employer. You do not have to do it, but in most cases you do gain from it. You usually have to pay a percentage if you take the money out to soon.
They have no affect.
yes
No. Distributions from a 401k are unearned income for Social Security purposes, and do not affect the benefit amount you receive under regular SS retirement or SSDI (disability) programs. Only SSI (Supplemental Security Income, a form of welfare) payments are means-tested and offset by either earned orunearned income.
The benefits from 401k plans are for retirement. It is a load off peoples minds that they know when they retire, they will have enough money to live a comfortable lifestyle without relying only on social security.
Yes. Having a retirement account such as a 401k or an IRA will not affect your ability to draw social security benefits.
Yes, they are separate and unconnected programs.
I am 65. My full Social Security retiredment age is 66. I wnat to draw social security but am concerned that if I take SS payments and draw from my 401K that i will exceed the $14,000 + cap on annual wages. Arel draws from my 401K counted against the 14K cap ??
A regular annuity which is not a 401K is counted against social security income limits.
yes. once you withdraw the money it is taxable as income.
A person will invest in a 401K in order to save for retirement. The social security that is available during retirement is often not enough for a person to live comfortably.