What about 403(b) (I think?) and tax deferred savings programs?
Or are all of those pretty much lumped under 401(k)?
Or are all of those pretty much lumped under 401(k)?
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- Thread starter jefhatfield
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They're the same
403(b) and 401(k) differs only by employer (i.e. public vs. private) and function in a similar matter so put those hard-earned pennies into your employer-sponsored plan!
403(b) and 401(k) differs only by employer (i.e. public vs. private) and function in a similar matter so put those hard-earned pennies into your employer-sponsored plan!
Re: Question for macktheknife...
For young people (like us - I'm also 28), it's almost a no-brainer. The money you put in is after tax, but the gains you get are completely tax free. With a 401k (or 403b), you'll have to pay taxes when you withdraw from the account.
The downside to a Roth is that your money will be tied up until you're 59 1/2. But there are qualifying events where you can take your money out without penalty (i.e. school, buying house, etc).
The Roth is one of the best things going.
I'd just like to add that you should definately look into putting some money away in a ROTH IRA account. If the maximum contribution is too high, you could always spread out your contribution throughout the year.
For young people (like us - I'm also 28), it's almost a no-brainer. The money you put in is after tax, but the gains you get are completely tax free. With a 401k (or 403b), you'll have to pay taxes when you withdraw from the account.
The downside to a Roth is that your money will be tied up until you're 59 1/2. But there are qualifying events where you can take your money out without penalty (i.e. school, buying house, etc).
The Roth is one of the best things going.
More more thing about Roth
Remember that you can withdraw your *contributions* (not your gains) from your Roth IRA account without penalty after 5 years. Make sure you speak with an investment advisor about this.
Remember that you can withdraw your *contributions* (not your gains) from your Roth IRA account without penalty after 5 years. Make sure you speak with an investment advisor about this.