How does a 401K work?
This calculator I found says my 401K will be worth 4 million when I retire at age 65
I'm 23, I put 12,000/year into my 401K... how does this add up to 4 million.. and if I retire how do I achieve the money?
Answers: it may not be exactly 4 million, but it will be more than you put in to it.
a lot of employer either contribute to employees' 401k accounts, or even match what you contribute.
also, interest will build over time.
when you establish to retire, you would just contact the company which your account is held through and ask for a payout.. as long as you are the required age when you ask for the foot out, you shouldn't be charged a penalty.
you can get the money at any time, as it is your money, but if you opt to take it out soon for any reason, they will charge a cost fee.
One correction to getting your money. As an active member of staff you may only have access to loans (no taxes or penalty because you are paying it back to yourself) and hardship distributions (taxes and cost taxes). I wouldn't recommend ever taking your money out of your 401k prior to retirement (or rolling it over). The penalty taxes just aren't worth it.
If you are 59 1/2 years or elder you are eligible for a 1x a year withdrawal. If taken out as cash you will lone be taxed, no penalty. Once you residence, regardless of your age, you are able to take the money as a change distribuiton (taxes and penalty taxes) or roll over into another account.
Your employer should hold someone you can talk to about the 401k. You can also look at the SPD for more information going on for your plan specifically. It's going to be a large document but don't let it terrify you off.
Its the magic of compound interest. If you are 23 and reclaim 15% of your income now, by the time you retire lets voice at age 62 you WILL have millions of dollars.
Check out this video explaining compound interest
http://www.moneycrashers.com/226/
Also if you want to learn more run to DaveRamsey.com
http://en.wikipedia.org/wiki/401k
Why i dont want buy from nouns 24 ct gold ingots ?
If grease companies don't pace expectations at proceeds, do their share prices after solely rise near the price/brl?
Changing some Fidelity funds...any thoughts?
Can a non-profit consortium purchase reserves bonds?
People whos smart beside stocks HELP!?
What is the best the trade concept to invest within very soon?
How do I procure started beside year trading?
If I own 50,000.00 to invest surrounded by yahoo stocks at 19.29 a share. How tons shares of stock will I own.?
I'm 23, I put 12,000/year into my 401K... how does this add up to 4 million.. and if I retire how do I achieve the money?
Answers: it may not be exactly 4 million, but it will be more than you put in to it.
a lot of employer either contribute to employees' 401k accounts, or even match what you contribute.
also, interest will build over time.
when you establish to retire, you would just contact the company which your account is held through and ask for a payout.. as long as you are the required age when you ask for the foot out, you shouldn't be charged a penalty.
you can get the money at any time, as it is your money, but if you opt to take it out soon for any reason, they will charge a cost fee.
One correction to getting your money. As an active member of staff you may only have access to loans (no taxes or penalty because you are paying it back to yourself) and hardship distributions (taxes and cost taxes). I wouldn't recommend ever taking your money out of your 401k prior to retirement (or rolling it over). The penalty taxes just aren't worth it.
If you are 59 1/2 years or elder you are eligible for a 1x a year withdrawal. If taken out as cash you will lone be taxed, no penalty. Once you residence, regardless of your age, you are able to take the money as a change distribuiton (taxes and penalty taxes) or roll over into another account.
Your employer should hold someone you can talk to about the 401k. You can also look at the SPD for more information going on for your plan specifically. It's going to be a large document but don't let it terrify you off.
Its the magic of compound interest. If you are 23 and reclaim 15% of your income now, by the time you retire lets voice at age 62 you WILL have millions of dollars.
Check out this video explaining compound interest
http://www.moneycrashers.com/226/
Also if you want to learn more run to DaveRamsey.com
http://en.wikipedia.org/wiki/401k