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The 401(k) has two varieties: the traditional 401(k) and the Roth 401(k). Traditional 401(k) : Employee contributions are made with pretax dollars, lowering your taxable income.
Few Americans fully understand how their retirement plans work -- but it is important to learn how your 401k operates if you plan on retiring soon.
With a traditional 401(k), contributions to your retirement account are tax-deferred. In other words, taxes you owe are delayed to a later time — in this case, when you make withdrawals from ...
A Roth 401(k): You do not get any upfront tax break with a Roth 401(k). You invest with after-tax dollars and defer your tax savings until retirement when you can withdraw money tax-free.
A 401(k) can be a great way to save for retirement, but a few wrong decisions can derail your progress. Fortunately, it only takes a little planning to avoid the biggest 401(k) mistakes.
Learn how much the average American has saved by age, and rules of thumb for how much you should have in your own 401(k) for a solid road to a comfortable retirement. Average 401(k) balance by age ...
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