How Does a 401(k) Actually Work (And Why Most People Get It Wrong)
Most Americans contribute to a 401(k) for decades without understanding what it actually is. The short version: it’s a tax-deferred investment account tied to your … Read More
How to Calculate Your 401(k) Contribution Per Paycheck (Without Leaving Money on the Table)
Most people think calculating their 401(k) contribution is a one-step division problem. Divide the annual limit by your salary, set that percentage, and forget it. … Read More
After-Tax 401(k) Contributions: The Third Bucket Most Plans Don’t Mention
Most articles about after-tax 401(k) contributions pitch them as a loophole for the wealthy. That framing misses the point. After-tax contributions are a specific mechanism … Read More
Can You Change Your 401(k) Contribution at Any Time? What Your Plan Won’t Tell You
Technically, yes, you can change your 401(k) contribution at any time. That’s the answer you’ll find on every financial website, and it’s not wrong. It’s … Read More
Should You Max Out Your 401(k)? The Answer Is More Dangerous Than You Think
“Max out your 401(k)” might be the most repeated piece of financial advice on the internet. It’s also one of the most blindly followed. The … Read More
Does Employer Match Count Towards Your 401(k) Limit? Two Limits, Two Answers
The standard answer you’ll find everywhere is: no, your employer match doesn’t count toward your 401(k) contribution limit. That’s technically correct. It’s also dangerously incomplete. … Read More
Are 401(k) Contributions Tax Deductible? The Answer Is More Nuanced Than You Think
The short answer is no, your 401(k) contributions are not tax deductible. Not in the way the IRS defines a deduction. But they do lower … Read More
How Much Should You Really Contribute to Your 401(k), and When the “Right” Answer Is Wrong
The standard advice is 15% of your pretax income. That number is not wrong, but it is dangerously incomplete. It assumes you started saving at … Read More