Traditional 401(k) Hacks: Unleash Your Inner Financial Ninja

Learn about the 401K retirement account.

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This article IS NOT FINANCIAL ADVICE, please do your own research before making any investment. In this article I will discuss the Traditional 401K retirement account. You will learn what it is and maybe some things that you didn’t know before.

What is a Traditional 401K?

According to Investopedia, a 401 (k) is a retirement savings and investing plan offered by many employers to their employees. It is a tax-advantaged, defined-contribution plan, which means you can invest a portion of your salary, up to an annual limit (the 2024 limit is $23,000), and reduce your taxable income. Your employer may or may not match some part of your contribution. The money will be invested for your retirement, usually in your choice of a variety of mutual funds.

KEY TAKEAWAYS

• A 401(k) is a qualified retirement plan, which means it is eligible for special tax benefits.