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

randerson112358
5 min readMar 13, 2024

Learn about the 401K retirement account.

Disclaimer: The material in this article is purely educational and should not be taken as professional investment advice. Invest & budget at your own discretion. Affiliate links are in this article (by clicking on these links you help me out with no additional cost to yourself). Please enjoy the article!

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.

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