Although the amount you may contribute to your 401k varies by year, in 2012 one could contribute up to $17,000 to their 401k. Remember that one's employer may not match your contribution up to this amount.
m 401k contribution in 2014
The main difference between a traditional 401k and a Roth 401k is how they are taxed. In a traditional 401k, contributions are made with pre-tax money, meaning you don't pay taxes on the money you put in, but you pay taxes on withdrawals in retirement. In a Roth 401k, contributions are made with after-tax money, so you pay taxes on the money you put in, but withdrawals in retirement are tax-free.
It is better to do a 401K if your company will match any money that you put in. Put in only what they will match and put the rest in a Roth ira for the best outcome.
Yes, you can contribute money to your 401(k) account to save for retirement.
75,000
m 401k contribution in 2014
The general rule of thumb is that you can't put more money into your 401k than the total income that your company pays you.
no
The main difference between a traditional 401k and a Roth 401k is how they are taxed. In a traditional 401k, contributions are made with pre-tax money, meaning you don't pay taxes on the money you put in, but you pay taxes on withdrawals in retirement. In a Roth 401k, contributions are made with after-tax money, so you pay taxes on the money you put in, but withdrawals in retirement are tax-free.
put extra money in their 401K plan
It is better to do a 401K if your company will match any money that you put in. Put in only what they will match and put the rest in a Roth ira for the best outcome.
put extra money in their 401K plan
Yes, you can contribute money to your 401(k) account to save for retirement.
75,000
Contributing to a traditional 401k before tax means you don't pay taxes on the money you put in now, but you will pay taxes on the withdrawals in retirement. Contributing to a Roth 401k means you pay taxes on the money you put in now, but withdrawals in retirement are tax-free.
Contributing to a pretax 401k means you don't pay taxes on the money you put in now, but you will pay taxes on it when you withdraw it in retirement. Contributing to an after-tax 401k means you pay taxes on the money now, but won't pay taxes on it when you withdraw it in retirement. The choice impacts your retirement savings by affecting when you pay taxes on the money and how much you ultimately have available for retirement.
Yes, You can lose Money in a 401k