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A 401(k) account is a tax-deferred retirement savings account setup by many employers for their employees in the United States. Employees can elect to contribute part of their earnings - either pre-tax or after-tax - to their 401k account and the employer will often make a matching contribution for a portion of it. The before-tax and/or after-tax contributions are subject to yearly limits set by the IRS. Related to the 403b and Thrift Savings Plan (TSP)

11 votes

Any experience with maxing out 401(k)?

I moved from contributing 10% to maxing as my salary rose over the course of three years after graduation. Because of my raises, my monthly take home still increased, so it was a pretty painless way …
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8 votes

What is the difference between a Rollover IRA and a Roth IRA?

A rollover IRA is a traditional IRA. Your rollover contributions are not taxed and rollover or counted against your annual limit, which is income dependent. A Roth IRA is one where your contribution …
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16 votes
4 answers
3k views

Confusion about Roth 401K: Better for me to do pre-tax or Roth post-tax contributions?

My company offers a 401K and a Roth 401K. Given the income level of my family (married filing jointly status), IRAs aren't really an option. … Currently I contribute to my regular 401K and have barely investigated the Roth 401K option until reading several questions here. …
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15 votes
Accepted

Quit my job: What can/should I do with funds in previous employer's 401(k) plan?

See these questions: Rollover 401k to new 401k, IRA or Roth IRA? Is my company 401k okay or should I be using an IRA? What expenses do 401k funds charge? … Pros, cons, & differences in investing in 401k vs. IRA? What's the best way to manage all the 401K accounts I've accumulated from my past jobs?? …
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6 votes
Accepted

Switched jobs & short on cash. Should I withdraw from 403(b) or borrow from 401(k)?

With a 401K loan you're putting yourself at risk if you run into a situation where you can't pay the loan back of incurring the same penalties as an early withdrawal. …
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10 votes

Should I take money out of an old 401(k) to put a down payment on a house?

Unless that 401K has very low expense ratios on its funds, you should roll it into an IRA and choose funds with low expense ratios. …
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