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Beginner's Guide to 401(k) Plan Investing
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    Investing for Beginners Retirement

    Beginner's Guide to 401(k) Plan Investing

    Understanding How a 401(k) Account Works

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    By Joshua Kennon
    Updated September 20, 2016

    With 401(k) accounts taking over traditional pension plans for most of the world, it is more important than ever that you understand how 401(k) investing works. Your retirement probably depends upon it! This guide was designed for beginners to help them understand things such as contribution limits, the difference between a 401(k) account and an IRA, early withdrawal penalties if you access your money before the appropriate age, and so much more.

  • 01
    Intro to 401(k) Retirement Plans

    Intro to 401(k) Retirement Plan Investing

    This four-page in-depth overview explains the basics of a 401(k) plan and how you can use your 401(k) account to invest for your retirement. It is the best place to start if you don't know anything about how these types of retirement accounts work because it covers the foundation of almost every area you need to understand about a general retirement account including rollovers, penalty taxes, loans, and hardship withdrawals.

  • 02
    401(k) Investing Doesn't Have to Be Hard

    401(k) Investing Doesn't Have to Be Hard

    Sometimes, investors make 401(k) accounts too hard when they don't have to be. The biggest misunderstanding is that a 401(k) is a type of investment when it's not. It is a type of tax-advantaged account that can hold investments, the most popular of which are mutual funds.  This overview of some common mistakes made by retirement investors might help you get a better handle on your own investments.

  • 03
    The Secret to 401(k) Investing Success

    The Secret to 401(k) Investing Success

    There are a handful of things that make it possible for a 401(k) retirement account to supercharge your saving and investing.  By harnessing these advantages, you have a real opportunity to grow richer over long periods of time thanks to the power of compounding. With actual math examples of how you can profit from the tax-advantages, matching contributions, and long-term nature of your retirement account, this article was designed for those who want to see details of how taking advantage of your employer's plan can help you achieve your own goals.

  • 04
    The 5 Most Important 401(k) Terms You Should Know

    The 5 Most Important 401(k) Terms You Should Know

    When it comes to 401(k) investing, there are five terms that every new investor should know.  These terms include the matching rate, the matching limitation, the contribution limit, the tax reduction, and the hardship withdrawal. By understanding what each means, and how you can use it for your own benefit, you can improve your chances of becoming financially independent and having a financially strong retirement.

  • 05
    You Don't Have to Choose Between a 401(k) and an IRA

    You Don't Have to Choose Between a 401(k) and an IRA

    One of the most popular questions is, "Can I have both a 401(k) and a Traditional IRA or Roth IRA?" The answer is: Yes! There are some rules you need to follow if you have a special type of IRA such as a Simple IRA or SEP-IRA but otherwise, by taking advantage of both, you might be able to save a lot more money for your retirement fund. This overview explains how it is possible and a few of the reasons you might consider opening both a 401(k) and an IRA.

  • 06
    What Are the Pros and Cons of Taking a 401(k) Loan?

    Taking a 401(k) Loan

    Taking a 401(k) loan, sometimes called a hardship loan, can be a last resort way to access your retirement money without getting slammed with an early withdrawal penalty ... as long as you follow the rules and repay the money before it is due! To learn about how these loans work and how you might qualify one, read this article.

  • 07
    The Two Biggest 401(k) Penalties You Should Avoid

    Avoiding 401(k) Penalties

    There are two huge 401(k) penalties you should avoid.  Accidentally triggering them could result in much of your hard-earned money going to the IRS in penalty taxes instead of into your nest egg, resulting in devastating long-term consequences for your retirement planning and future! Do yourself a favor and get educated on what these penalties are, how they are triggered, and some of the things you can do to protect your investments.

  • 08
    Solo 401(k) and Self-Employed 401(k) Plans

    Solo 401(k) and Self-Employed 401(k) Retirement Plans

    For millions of investors, the biggest investment in their life is a family-owned small business. What about entrepreneurs that want to take advantages of some of the tax benefits of a 401(k) plan?  That is where the Solo 401(k) or Self-Employed 401(k) plan comes into play. These accounts are offered by some of the world's biggest retirement plan administrators and can be opened with a little bit of patience, time, paperwork, and expense.  To learn more about these accounts, read this article.

  • 09
    How the New Roth 401(k) Can Keep More Cash In Your Pocket

    Roth 401(k) Retirement Investing

    Following the enormous success of the Roth IRA, which allows investors to deposit after-tax dollars into an account to grow for retirement and shield all of the profit, dividends, interest, rents, and capital gains from taxes so not a penny goes to the government, Congress introduced a new invention called the Roth 401(k).  By designating contributions under the Roth provisions, an investor that follows the rules might be able to enjoy the same tax-free growth in his 401(k) account as he can in a Roth IRA!

  • 401k-3

    A Beginner's Guide to the Different Types of 401(k) Plans

  • 401k Contribution Limit Guide

    What You Should Know About 401(k) Limits

  • 401(k) Penalties

    401(k) Penalties to Avoid

  • 401(k) Loans

    It's Almost Always a Bad Idea to Borrow Against Your 401(k): Learn Why

  • Small biz owners

    Self-Employed 401(k) Plans for Small Business Owners

  • The new individual Roth 401(k) plan combines the best features of a Roth IRA and a traditional 401(k). Self-employed people can often use it to save huge amounts for retirement while avoiding taxes on the capital gains, dividends, interest, rents, and other profits.

    Using an Individual Roth 401(k) as a Self-Employed Tax Shelter

  • A man checking on his 401k

    The Basics You Should Know About 401(k) Plans

  • 401(k)

    The 5 Most Important 401(k) Terms You Should Know

  • Each year, the United States government allows individuals to contribute a certain amount of money into a traditional IRA or a Roth IRA account.

    Traditional IRA and Roth IRA Contribution Limits

  • SIMPLE IRA

    SIMPLE IRA Plan for Small Business Owners

  • Mid adult couple checking bills in kitchen

    A Beginner's Guide to Investing in Your 401k Retirement Plan

  • Opening a Roth IRA for Kids

    Open a Roth IRA for Your Kids to Help Them Build Wealth

  • Similar to a 401(k), a 403(b) plan is a type of retirement savings account for certain employees of public schools, tax-exempt organizations, and ministers.

    Know Your 403(b) Retirement Plan

  • 3 Ways to Supercharge Your Retirement Savings

    3 Ways to Supercharge Your Retirement Savings

  • Financial advisor and woman with laptop meeting in dining room

    Finding the Right Type of Individual Retirement Account for Your Needs

  • Do Not Invest in Tax Free Municipal Bonds in a Roth IRA

    Never Hold Tax-Free Municipal Bonds Through a Roth IRA

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