Roth 401(k) vs. Traditional 401(k) and your Paycheck?
Roth 401(k) vs. Traditional 401(k) and your Paycheck
A 401(k) can be an effective retirement tool. As of January
2006, there is a new type of 401(k) contribution. Roth 401(k)
contributions allow you to contribute to your 401(k) account on an
after-tax basis and pay no taxes on qualifying distributions when
the money is withdrawn. For some investors this could prove to be a
better option than the Traditional 401(k) contributions, where
deposits are made on a pre-tax basis, but are subject to taxes when
the money is withdrawn. Use this calculator to help determine the
option that could work for you and how it might affect your
paycheck.
Related Q&A：
How do you take out money from your 401 k？Well, let me tell you. Taking out money from your 401k isn't as simple as you might think. First off, you need to check if you meet the eligibility requirements. Usually, there are specific circumstances like reaching a certain age, having a financial hardship, or leaving your job. Then, you'll have to fill out some paperwork and submit it to your plan administrator. Oh, and keep in mind that there might be taxes and penalties involved, so it's something you really need to think through carefully. But if you do it the right way and for a valid reason, it can be done.
