401kvs Roth IRA
There is no age consideration when you are planning to take a retirement plan. Planning should be done at the early stages of the carrier but if you have overlooked it then it can be done at any stage of your carrier. A person who is planning for the retirement should be well aware of all the plans available to him. Among the best plans in the U.S. 401 K and Roth IRA top the list. These plans are very retirement friendly as they provide good tax benefit. Both the plans are designed to give maximum benefit on retirement, but are slightly different from each other.
401k
401kis a defined contribution plan initiated by the employer, where the employees can elect to contribute a portion of their salary towards the 401k plan. What employer does is he holds back some part of the salary of the employee and uses it as a contribution towards a fund which the employee gets after retirement. In some instances, the employer matches the contributions by the employee with some money on his own every year.
从薪水对该基金造成的扣除是not taxed till the withdrawal during the retirement (tax deferred),which is a benefit for anyone who opts for this plan. The该金额获得的利息也是免税的. Upon retirement you can elect to receive the distribution as a lump sum or distributed as monthly payments upon retirement.
自401 k计划非常有效的退休计划ns that are capable of providing you the best shield in terms of financial security after retirement, the government and the employer would not encourage you to go for an interim withdrawal. That is why heavy tax penalties are inflicted on the person that wishes to go for early withdrawal in the 401k plan. You are eligible for withdrawal only if you are at least 59 ½ years old and if the fund is at least 5 years old. It means that the plan is not liquid and the employer cannot have money as he wishes. There is a 10% penalty imposed by the IRS if you withdraw the money before the age of 59 1/2.
You can still avoid the situation of paying harsh tax penalties in the event of early withdrawals from your 401k account provided you stick to certain strict withdrawal rules as far as a 401k account is concerned. Some of the cases where this penalty is exempted are qualifying disability, distribution to the beneficiary on or after the death of the participant, medical care (only up to an certain allowable amount), or on certain disasters for which IRS relief has been granted.
一些401K计划允许借贷符合既得帐户余额。如果贷款符合某些标准,则不应征税。您可以借贷最多的既得帐户余额的50%。最高贷款金额不得超过$ 50,000。贷款当然必须在5年内偿还,除非贷款用于购买您的主要房屋。
It is also possible to transfer your old 401k plan if you switch jobs, and if your new employer has 401k plan. There are several types of 401k plans and one can choose according to his needs.
雇主可以使用几种401K计划 - 传统的401K,安全港401K和简单的401K。
401 K中有吸引力的是税收推迟选择,选举延期始终是100%归属的。假设一个人比他年轻的时代所需的舒适生活需要少的钱,那么从基金退休后缴税并不那么痛苦。
Roth IRA
这是一个类似于永久储蓄帐户的退休计划。它变得非常受欢迎,因为它可以为员工提供免税收入。需要满足两种条件。员工的年龄必须至少为59½,他的基金必须至少5岁,才能从中取款。大多数收益类似于401K,除了税收优惠差异。In Roth IRA An employee pays taxes now and faces no tax cuts later.Even the interest earned on fund is tax free,which is why more people are opting for Roth IRA. Normally, a person can contribute up to $4000 per annum into his fund, but if he is above 50, this contribution can go up to $5000.
在罗斯艾拉qualified distributions are penalty free and tax free, but like any other retirement plans, non-qualified distributions from a Roth IRA may be subject to a penalty upon withdrawal. Also contributions can be made to your Roth IRA after you reach age 70½ and you can leave amounts in your Roth IRA as long as you live.
More information onRoth IRA
Difference between 401k and Roth IRA
The differences between 401k and Roth IRA are subtle, and often people have trouble deciding between the two. The major difference between the two lies in the manner the earnings are taxed. This is not significant if you have got a 401k plan where the employer makes a matching contribution.In Roth IRA,仅仅是您的钱才能进入基金,并且在您获得的时候很有吸引力tax free earnings after retirement. Basically it boils down to whether a person wants to pay taxes now, or when he retires.
401k和Roth IRA之间的另一个主要区别是它们的管理方式。当您选择401K时,您对资金的控制方式没有发言权,这是雇主投资资金的唯一特权。在罗斯IRA,您可以更好地控制资金。
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