401k Retirement Saving Calculator
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A 401(k) is a special type of savings account for retirement. It's a benefit that many employers offer to their employees.
401(k) Calculator
Here's what you need to know about 401(k)s:
Savings for Retirement: A 401(k) is a way to save money when you're older and no longer working. It helps you prepare for retirement, so you can have money to live on when you stop working.
Automatic Deductions: With a 401(k), a portion of your salary is automatically taken out of your paycheck and put into your 401(k) account. This money is usually taken out before taxes are calculated, which can lower your tax bill.
Employer Contributions: Sometimes, your employer also adds money to your 401(k) account. This is like getting free money for your retirement savings. It's usually based on how much you contribute.
Investment Opportunities: The money in your 401(k) isn't just sitting there. It's invested in things like stocks and bonds, which can grow over time. This is how your savings can increase.
Tax Benefits: You don't have to pay taxes on the money in your 401(k) until you take it out when you're retired. This can save you money in the long run.
Rules and Penalties: There are rules about when you can take the money out of your 401(k), and taking it out too early can lead to penalties. It's designed for long-term savings.
Portability: If you change jobs, you can often take your 401(k) savings with you or roll it into a new employer's 401(k) or an individual retirement account (IRA).