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When it comes to saving for retirement, it seems that many Americans aren’t sure about things like 401k contribution limits. And this is only the tip of the iceberg.

401k investments are an essential part of any retirement strategy. Most people understand they if they have a match from their employer that they should try to contribute at least that amount. Plus, many Millennials are contributing to their 401ks as well.

However, there are many details about 401ks that you should be aware of. Here are 5 things:

1. 401k Contribution Limits

While meeting your 401k match from your employer is a good first step when saving for retirement, there are other things you can do. You can probably contribute way more than just the match to your 401k. In 2017, the 401k contribution limits are $18,000 (add an additional $6,000 for those 50 and over). That means you can contribute up to $18,000 to your 401k every year.

2. Have a Roth 401k

Most people settle for a Traditional 401k. This involves 401k investments with pre-tax dollars. However, there is also a Roth 401k option. It has the same rules as a Traditional 401k, except this one involves post-tax dollars. With a Traditional 401k, you’ll owe taxes in retirement. With a Roth 401k, your money grows tax-free and you keep everything in retirement.

3. Take a 401k Loan

If you need a quick loan that you can repay, there’s always your 401k as an option. Most people don’t even realize about this 401k loan. Essentially, you will borrow money from your 401k for a specific expense. Keep in mind, some 401k plans don’t offer this option.

4. 401k Withdrawal Rules

It turns out that there are some 401k withdrawal rules. Most people are aware that they needed to be at least age 59 1/2 to withdraw money from their retirement account without the penalty. However, you also required to make distributions from your 401k starting at age 70 1/2.

5. Roll Over

When you leave your job, your 401k investments are all yours. You can roll your 401k into an IRA. Speak to with a reputable investment broker today about how easy it is to roll over your 401k into an IRA.



