Newsletter - What Is a 401(k) Plan? Everything You Need To Know

This is your Newsletter. [LPB]( [LPL]( [LetmePayday Newsletter]( You Might Like     [Learn more about Jeeng](  [What Is a 401(k) Plan? Everything You Need To Know]( [What Is a 401(k) Plan? Everything You Need To Know]( A 401(k) is a savings account that offers several tax advantages that you can receive as part of your employee benefits program. It allows you to save some of your pay toward retirement. Many employers provide matching funds, which can boost your savings more. What Is a 401(k) Plan? A 401(k) plan is a retirement account offered by employers. Employees can opt to have some of their earnings deducted from their paychecks and put into a 401(k). These deductions are pretax, which means that they come out of the paycheck before taxes are deducted. Pretax deductions lower an employee’s taxable income, which means that you will pay less in taxes that year. 401(k) retirement plans also have benefits for employers, such as attracting employees. Additionally, employers can deduct contributions from their federal income taxes. Here are a few more quick facts about how 401(k)s work: - Plan sponsors offer a variety of investment options, including stocks,    bonds, and mutual funds. - Employees decide which investments they want and allocate funds. - Employees don’t pay taxes on contributions or interest until withdrawal. - Employees can contribute to both a 401(k) and an individual retirement account in the same year. [[icon] Read MoreÂ](  [Get the money you need](   [How To Build Credit the Right Way](  [How To Build Credit the Right Way]( There are a number of ways to build credit quickly without going into debt. Compare co-signers, starter credit cards, credit-builder loans, and other options to see which is best for you. How do you get a mortgage, car loan, or apartment lease? By presenting the bank or landlord with a good credit history that demonstrates you’ve been financially responsible in the past. But what if you don’t have any credit history, because you’ve never been approved for credit? It’s the ultimate catch-22: -   No credit card? No credit history. -   No credit history? No credit card. If you’re panicking because you don’t know how you’ll get that loan you need without a credit history, relax. It can be done. We’ll walk you through how to good build good credit fast — even if you’re starting from scratch. Get Help From a Family Member Who Has Good Credit A willing parent or significant other who uses credit responsibly can help kick-start your credit score by either co-signing a loan or adding you as an authorized user on a credit card account. [[icon] Read MoreÂ](  You Might Like     [Learn more about Jeeng]( Connect with LetmePayday on Social Media Pages [Facebook]( [Linkedin](    [Unsubscribe](