How can you make money through 401 k?
This is a profit sharing plan where the employee designates a
certain percentage or dollar amount of his/her paycheck as a
'pre-tax' deduction that goes into an IRS approved 401k plan. It
makes money from earned interest or from corporate matches.
If any funds are removed before a certain age, an automatic 20%
is withheld for Federal tax and an additional 10% penalty for
withdrawal before age 59-1/2.