Author Topic: 401k in layman terms please  (Read 5497 times)

Offline BillionSports

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401k in layman terms please
« on: October 30, 2013, 12:51:35 AM »
Can anyone explain clearly to me what exactly the 401k plan is? And how it differs from IRA?
« Last Edit: October 30, 2013, 12:51:35 AM by Guest »
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Offline CompanyPerson

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Re: 401k in layman terms please
« Reply #1 on: November 09, 2013, 07:05:53 PM »
It is a retirement plan; tax-deferred nature is their advantage wherein your income is not taxed until the moment benefits expenditure to you. This allows your investment to grow with more money in the *nd and lets interest build it longer. Most companies will have 401k contributions taken involuntarily taken out as a payroll deduction. You should also get quarterly reports from the investment company.
« Last Edit: November 09, 2013, 07:05:53 PM by Guest »
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