Why Does the Stock Market Go Up? by Brian Feroldi

Author:Brian Feroldi
Language: eng
Format: epub
Publisher: Choose FI Media, Inc.
Published: 2021-12-15T00:00:00+00:00

Roth 401(k) cons:

■Contributions to Roth 401(k)s are usually made through payroll deductions after taxes are paid. That means that the employee does not realize an immediate tax benefit.

■The employee’s investment choices are usually limited to a handful of funds that are chosen by the employer.

■The employee can’t touch the money until they reach age 59½ without paying a penalty (except in certain circumstances).

Individual Retirement Arrangement (IRA): An IRA is nearly identical to a regular 401(k), except it is usually not associated with an employer. Anyone can set up an IRA with a broker and can contribute money to it on a pre-tax basis.

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