I heard that if you retire before 67, you won't get 100 % of what YOU put into your 401k.. True?
I have been looking online for more info...can't find any.
links are helpful
links are helpful
31-35, F
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SW-User
Currently, you can begin drawing from a 401k at age 59 1/2 without penalty. You’ll pay taxes, because it was invested pre-tax.
iamnikki · 31-35, F
@SW-User so that kinda is a penalty then right
@iamnikki it's not a penalty. You pay the taxes you didn't pay earlier.
If you have a Roth option you pay them up front rather than when you withdraw.
If you have a Roth option you pay them up front rather than when you withdraw.
SW-User
Technically, no. Money that goes into a 401k is pre-tax, which means you aren’t paying any income tax on that income at the time. In addition, you aren’t paying income tax on any money that money earns. I started in my 20’s, and I have a substantial 401k and haven’t paid a dime of taxes on any of it yet. Once I start to draw from it for income, I would pay income tax on it, which would be the first time it was taxed. By that point, it’s been churning and earning tax free for decades. @iamnikki
