Could someone explain please?
401K What is it?
by bigmouth 4 Replies latest jw experiences
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serendipity
Most Americans will not have pensions, so this is an alternate retirement vehicle. The major difference between this and a pension: we have to fund it ourselves.
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bigmouth
Thanks you two. The 'K' had me thinking of 'thousands' of $! But it's obviously a form number.
It seems like a type of superannuation we can opt into over here. -
Navigator
The term refers to section of the tax code. It is a method of funding retirement that allows deferal of income tax until withdrawals begin. Many companies contribute to their employees 401K which allows it to grow faster. It goes with you should you leave that company, that is it can be rolled over into another tax deferred account.