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Tag: 401k

What Happens if I Withdraw My 401(k) Early?

What Happens if I Withdraw My 401(k) Early?

A 401(k) is a company-sponsored retirement plan that gives employees a tax break on the portion of their salary they contribute to the plan. Contributions are automatically withdrawn and invested in funds of the employee’s choosing, and employers have the option to match contributions. 401(k) plans are designed for retirement savings. Early withdrawal of funds carries heavy penalties under normal circumstances.  How Soon Can You...

What Happens When You Inherit A 401(k)?

What Happens When You Inherit A 401(k)?

A 401(k) is a tax-deferred, retirement savings account. When a person opens a 401(k), he or she names one or more beneficiaries to receive the remaining funds when the account holder dies. If you have inherited a 401(k), your options will depend on several factors, including your age, the account holder’s age at the time of death, and whether the account holder was your spouse....

How Does My 401(k) Get Invested?

How Does My 401(k) Get Invested?

A 401(k) is a tax-deferred, employer-sponsored retirement savings plan that allows you to save and invest a portion of your paycheck. Your employer may contribute matching funds to your 401(k) account. The company may offer a choice of investment options, but you control how your 401(k) money is invested. What Are the Common 401(k) Investment Options? Employees can typically choose from a spread of mutual...