401k

[woods1110 0]

Can someone please explain a 401k to me? Sorry if I come off dumb to anyone, I have never dealt with a 401k and have no idea what it is and how it works. Thanks!

[AUJarhead 68]

Can someone please explain a 401k to me? Sorry if I come off dumb to anyone, I have never dealt with a 401k and have no idea what it is and how it works. Thanks!

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In a nutshell, it's a retirement account, that uses pre-tax money (you get taxed when you withdraw when you are 65) and allows your company to also make contributions on your behalf. If you take a withdrawal on it early, you get taxed, as well as paying a fee (something like 10%).

[stoic-one 1,495]

Just to add, 401K refers for the section of the tax code which delineates how the account is supposed to be administered.....

[AuNuma1 1]

Yeah you might want to start one up if your company offers it. Even if you contribute a little, it's better than nothing...forget social security dude, it won't exist by the time you and me get there. :hmm:

[Tigermike 2,606]

......forget social security dude, it won't exist by the time you and me get there.  :hmm:

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Don't say that, the Democrats say there is no reason to do anything!