- An employer sponsored retirement plan with automated contributions through your paycheck.
- Many employers offer to match a portion of what you save (=free money).
- Maximum contribution for 2019 is $19,000, and $25,000 if you are 50 years or older.
- Many plans offer a Traditional and a Roth option. The Roth 401(k) is not limited by income.
- Taxes and penalties may apply to early withdrawals.
- Contributions follow a January 1-December 31st calendar year.
- Vesting schedules may apply on employer contributions.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you discuss your specific situation with your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results.
Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.
Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.