Tag: 401k
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No, 401Ks Aren’t Scams
Recently, I’ve seen many people on Twitter, TikTok, and other social media pushing the idea that 401ks are scams. In my opinion, that can’t be any more wrong. Do 401Ks have drawbacks? Of course. There are limited investment options, contribution limits, potential fees, and an age limit for when you can start making withdrawals. However,…
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How to Take Money Out of Your 401k Without Penalty
In most instances, a withdrawal from a 401K prior to 59½ results in the amount being taxed at your income tax rate plus an additional 10% penalty (IRS). This rule is to encourage people to use these funds only for retirement. However, despite what you might think, there are several exceptions to this rule. In this…