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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.

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โˆ™ 2008-04-22 00:22:16
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Q: How can you make money through 401 k?
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