Essay On 401k Retirement

401K’s and Retirement plans 401K is a very important investment tool and a very important retirement tool. Along with the 401k there are also IRA’s or Roth IRA’s. All of these are great investment tools for your use after retirement. No matter what retirement plan you go with weather it is a 401K, IRA or a Roth IRA you should always do your research and make an educated decision as to which one will be better for you now and any time along your life even after you retire. A 401K is most often used by an employer. You as a single person can open one on your own but that is very uncommon and unwise choice when it comes to retirement plans and which on to get. At 21 or when you have worked there for one hundred and eighty days they will automatically enroll you in a plan. If you work at certain places they may offer a match program. This is where if you have a 401K with them and you really want to maximize your savings and investments then take your employer up on the offer to match. Most business will not match after a certain percentage. Tis it typically anywhere from zero to fifteen percent of your paycheck. This is for any paycheck whether it is semi-monthly, weekly biweekly, etc... Any kind of paycheck if they match in any pay period. The match is the best thing you can do if you want to maximize your investment. Another plus to a …show more content…
A Roth IRA is different in the sense of when you get taxed for your investment. It is not taxed at the end but rather the beginning. This is what draws some people to the Roth IRA and not the traditional IRA. A Roth IRA has already been taxed and the money has an opportunity to grow tax free, and be withdrawn tax free, but you have to meet certain requirements. In order for you to deposit money in an IRA of any kind the best way to do this is to have your bank take out a set percentage of your paychecks to put into your