401k plans
Tax-deferred savings vehicles
A 401k plan is a retirement savings account offered by employers in the United States, named after the section of tax code that created it.
Employees contribute a portion of their paycheck before taxes, and the money grows tax-deferred until withdrawal in retirement.
Many employers match contributions up to a percentage: My company matches 401k contributions up to 6%.
Early withdrawals typically incur penalties.
- retirementLeaving the workforce permanently
- golden yearsLater life stage
- savingsAccumulated money kept
- employerOne who employs others
- employer matchCompany duplicates worker savings
contribution · match · vesting · portfolio · investment · pension · IRA · compound · paycheck · deduction · automatic enrollment · tax-deferred · tax break · Fidelity · Vanguard · financial advisor · rollover · beneficiary
- assetsproperty, cash, money, investments, bank accounts
- investingstocks, stock, bonds, investing, investor
- investmentsbonds, stocks, securities, investment, equities
- aging workforceaging workforce, older workers, mature workers, baby boomers, senior staff
- HR programsemployee assistance, employee recognition, wellness programs, training programs, diversity programs
- tax strategiestax shelters, tax deferral, tax avoidance, tax breaks, write-offs
401k plansannuities
Periodic fixed payments
Social Security · pensions · pension plans · public pensions · government pensions
401k plansspending money
Cash for incidentals
checking accounts · liquid assets · cash on hand · payday loans · credit card debt
401k plansliving paycheck to paycheck
Earning only enough for immediate expenses
spending sprees · conspicuous consumption · no savings · bankruptcy · squandering