What is a 401(k)?
A 401(k) is a type of retirement account. It’s sponsored by an employer, so only those employed by a company can contribute.
The person enrolled in the 401(k) decides how much of their paycheck will go directly into your account through automatic payroll deductions, using pre or post-tax dollars.
A 401(k) has a larger annual contribution limit, up to $18,000 for individuals under the age of 50 and $24,000 for individuals over the age of 50.
People enrolled in a 401(k) are able to contribute to both the 401(k) and an IRA, but must stay under the annual contribution limits for each type of account.
Related questions View all Tips & Guidance
-
Q. The 2021 Tax Season Dates You Need to Know
There are six important tax dates you should know for 2021. Tax Day is April 15, 2021. You can make 2020 IRA contributions until April 14, 2021, at 3 p.m. EST. Tax season is just around the corner. To help you get organized,…
3 -
Q. Will I have stash tax documents if I lost money on Stash?
Essentially, if you sold an investment, you should have a tax form, even if you sold an investment at a loss. By February 16, 2021, you can check in the Stash app to see if your Form 1099-DIV and/or Form 1099-B are there.…
0 -
Q. You should have tax documents from Stash if…
You received dividend payments greater than $10 from your Stash Invest investments in 2020.1 You received more than $10 in interest on your Stash Invest account. You made a withdrawal from your Stash Retire IRA of $10 or more,…
2
Didn’t find your question?
Tell us what you’re looking for, and we’ll search for resources that could help.
Ask your question