Secrets of Success

Take Advantage Of Your 401k



Don't pass up 401k accounts. Most companies match your contributions. If a company matches up to 6% of gross salary, if one earns $2000/mo you could put in $120 & the company would put in $120. That's free money. With pretax contributions you'll see less than $120 subtracted from your paycheck.

More Information:

Some companies now offer a 401k that acts like a Roth IRA. Disadvantage: you don't pay with pretax dollars. Advantage: when you withdraw the money, there is no tax on the amount you contributed, nor any capital gains. (On a traditional 401k, you pay taxes on all money when withdrawn.)

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Member Comments

  • Also don't forget that some 401K plans will allow you borrow money from yourself. As long as you make your payments on time you will be drawing interest on the amount you borrowed from yourself. My son does this routinely for his home or a car loan. You can only have one loan at a time so you can't use it all. - by BUNNABABY

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