401k Plans and How They Work

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=wejTxJV82LU

The 401(k) plan has become the primary way most people save for retirement, as well as the primary way companies provide retirement benefits for their employees. This video tells you a bit about them and how they work, as well as the consequences of making early withdrawals from these accounts. • 2024 UPDATE: • The maximum employee contribution to a 401(k) for 2024 is $23,000 • Employees over 50 may make an additional $7,500 catch-up contribution. • SECURE 2.0 UPDATE: Plans now have the option to allow their participants up to one, $1,000 emergency withdrawal without penalty. Plans can also let their participants set up Roth-style Emergency Savings Accounts where participants can defer up to 3% of compensation to a maximum of $2,500 which can be withdrawn at any time without tax or penalty. • For additional detail on Rollovers, click here: • IRA 101: Rollovers • To learn more about early retirement plan withdrawals, click here: • Early Retirement Distribution Penalti... • Resources and additional information: • IRS Publication 17: Your Federal Income Tax : https://www.irs.gov/pub/irs-pdf/p17.pdf • Investopedia: 401(k) Plans, The Complete Guide : https://www.investopedia.com/terms/1/... • Forbes Advisor: Retirement Basics: What is a 401(k) Plan? : https://www.forbes.com/advisor/retire... • Intro and background music: “Bluesy Vibes” - Doug Maxwell - YouTube Audio Library • DISCLAIMER: • The information presented in this video is for informational and educational purposes only, and is not intended to render tax advice for specific situations. If you have questions about your specific tax situation, please consult the resources linked above or consult with a qualified tax professional in your community. • The information contained in this video is based on tax law and IRS regulations as of the date of publication, and may be subject to change.

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