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byAlma Abell
Setting up a 401K Colusa is easy enough. Your employer K Colusa. Other plans are riskier but may gain or lose money depending on the market. Some plans are based around certain technologies. You have plans that focus on green market corporations. Other plans include oil and gas, a modest sampling of the NASDAQ, a focus on your company specifically and many more.
A 401K is tax-deferred. In other words, you don’t pay taxes on the money that goes into your 401K until you start withdrawing it upon retirement. When taken out during retirement, 401K funds act as general income. As of 2013, the highest amount you can put into your 401K is $17,500 per year. With most 401K plans, you can essentially loan yourself the money in your 401K and pay it back to yourself with interest. You can take out up to two loans at a time.
401K plans help make the retirement years easier. As a supplement to Social Security, they provide extra income that can be withdrawn each month. It is important to make your 401K as large as possible. Have the maximum amount taken out of your paycheck each month. Make sure that you are at a percentage that your employer will match at least. This ensures that you are making the most money you can for retirement savings. Social Security K money to supplement your Social Security benefits will help tremendously in your retirement years.
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