How a 401k moves your money from one time period to another for tax purposes is crucial to understand in how it can benefit your tax picture…and in this video, we use a boat to demonstrate.
A 401k is a tax-deferred RETIREMENT SAVINGS PLAN that allows account owners to contribute earned dollars that REDUCE YOUR TAXABLE INCOME. A 401k plan from one company to another can be quite different, but at the core of how they actually work, things always remain the same: the money you contribute to a 401k will reduce your taxable income in the year that you contribute it your account, and your taxable income will be RAISED in a year that you withdraw money from your 401k in retirement.
The 401k is a key component of many people’s investment and retirement strategy. This video will bring you one step closer to understanding how it works, and how you can start taking control of your 401k money.
