401k wtf?

[Melena]

i know how 401k's work. i may have misread his statement as it sounded like companies want you to put your money into 401k so they can get away from paying you money you earned. If I did misread that, disregard my previous comment.

[HAcoreRD]

how old do you need to be to get your 401k? Retirement's what? 55 in the states? Personally, (I'm 20) and I don't see myself living that long, so it's really a gamble, will disease get you, or a car, or a meteor, or a bomb? Or maybe you'll live and get free money.

Might as well invest, can't take it with you.

[Azkarin]

I believe it is around 63-65.. not sure if it varies between states.

[Khamsin]

I believe it is around 63-65.. not sure if it varies between states.

It gets older as you get older. By the time we're 63-65, it'll be 73-75.

[Aerides]

After 59 1/2 you can withdraw without the 10% penalty. You still pay taxes at that time as then the withdrawal becomes your income. It doesn't get older at least it has not in the last decade. Don't make a mistake and confuse Social Security with a 401k. Totally totally different.

Another great reason to invest in your 401k plan is that money is pre-tax. Let's say you may 30k per year, and you put 3k or 10% into your plan. The IRS will only tax you as if you made 27k. Sure, you'll be taxed later but that would be likely less than at most points during your working life.

You will also want to check and see what kind of plans your employer has you in - the laws changed last year so it won't be much company stock anymore, but the younger you are, the more aggressive plan you should be in.

Anyone, any age, any income, should find a way to at least contribute the amount to which their company matches.