What Is A 401k? How Much Can You Contribute?

What is a 401k?
https://www.biblemoneymatters.com/401k-contribution-limits-and-rules-for-2019/

A 401k is a tax deferred retirement savings plan for employees. You join a 401k plan through your place of employment, and tell your employer how much of your paycheck should be sent to your 401k before your money is taxed and given to you in your paycheck.

Because the amount of your taxable income is reduced when pre-tax funds are sent to your 401k, you end up paying less taxes now, and the money grows without taxes until retirement.

How Much Can you Save Every Year?

You can Contribute up to $19,000 per year into your 401k as of 2019. $6000 extra if you're over 50.

The employer can make a contribution of up to 6% of the employee's salary as well.

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