Читать книгу Mutual Funds For Dummies - Eric Tyson - Страница 69

For-profit companies typically offer 401(k) plans, which typically allow you to save up to $20,500 per year (tax year 2022), $27,000 for those 50 and older. Your contributions to a 401(k) are excluded from your reported income and are free from federal and state income taxes but not from FICA (Social Security) taxes.

Absolutely don’t miss out on contributing to your employer’s 401(k) plan if your employer matches a portion of your contributions. Your company, for example, may match half of your first 6 percent of contributions (so you save a lot of taxes and get a bonus from the company). Check with your company’s benefits department for your plan’s details.

Smaller companies (those with fewer than 100 employees) can consider offering 401(k) plans, too. In the past, administering a 401(k) was prohibitively expensive for smaller companies. If your company is interested in this option, contact a mutual fund organization, such as T. Rowe Price, Vanguard, or Fidelity, or a discount brokerage house, such as Charles Schwab or Sharebuilder.