Did you know that the 401k plan has been around for more than 45 years? It’s true! Many people participate in them, yet a relatively small number of those don’t really understand much about them. So in today’s episode I’m going to unravel the ten most common 401k questions that people have posed to me over the years.
What’s the difference between a traditional 401k and a Roth 401k? What are the benefits of contributing? What about your investment options? And what happens to your 401k if you change jobs? These are just some of the questions I’m going to tackle today.
Do you have a retirement plan at work? Do you have a few important but unanswered questions about it? Then don’t miss a single minute of today’s episode of CAPitalize Your Finances!
Important Information:
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.
401K Plan information used is obtained from sources believed to be reliable as of the current date, but no representation is made as to its accuracy and completeness. Benefits may be subject to change at your employer the governing pension or benefit organization discretion.
Distributions of principal from a Roth 401K are tax-free; however, any earnings will be taxed at ordinary income rates and a 10% penalty tax will apply if withdrawn prior to age 59½ or within five years of the date the Roth 401K was established, whichever is longer. Your investment options are limited with a Roth 401(k) to those offered by the plan administrator; charges and fees may be incurred.
Christopher A. Panagiotu is a registered representative with, and securities offered through LPL Financial, Member FINRA/SIPC. The opinions voiced in this show (program; podcast) are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. LPL ART-574612 (05/24)