AskUs Fact List

AskUs: What is a 401k?

Comments (1)
  1. KnightsOfColumbus says:

    It is possible to contribute more than 18,000 a year. It is rare to get any of that money tax free in most cases they do not offer Roth 401k and even then to meet requirements for tax free are ridiculous I have a disabled guy that’s 88 and still has to pay taxes on his Roth IRA when he takes his RMD of only $200. They use the same guidelines. You also can get money out prior to 59.5 without penalties should you meet certain criteria typically circling around a bad financial, medical, educational or loss situation but also rare. These are actually horrible avenues for your retirement, the company contributes because they get a tax write off for it and whenever you make money they normally keep half or more of the profit. Even worse when you lose money your account is still charged a maintenance/management fee so that the company never loses money only you do. I have never seen, met, or heard of anyone that was able to retire on their 401k. That is why diversification is extremely important. A 401k should only be used to lower your income with a contribution no higher than what is matched by the company. Even then I have many ways to grow funds at a much faster pace with benefits and no penalties with complete security, guaranteed interest for life that is higher than any IRA or stock/fund available on the market. Please refer to the Knights of Columbus field agent in your area if you want to learn about a 401k and building your personal retirement. We are non profit, advice and guidance is free and we have no management fees or penalties or charges. We are non profit and work with the Pope.

    God Bless

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