401k Plan cheatsheet
Posted on . 2 min read
Here’s our 401(k) Plan cheatsheet:
This retirement savings plan is sponsored by your employer, essentially directing a percentage of each paycheck into a separate investment account. There are two types: Traditional: contributions are deducted from gross income, and taxes on the earnings are only due when you withdraw the money (usually in retirement). Roth: contributions are deduced from your after-tax income, but you won’t owe additional taxes on earnings when you withdraw the money.
Because of the way these earnings compound, it’s in your favor to open a 401(k) when you’re young - your earnings could grow into a sizeable amount of money by the time you’re ready to withdraw it.
Here’s how Xillion’s 401(k) Optimizer product will help you make that happen:
- Smart View
See all your accounts in one place. This is especially important if you’ve been with multiple employers; you’ll get a view of all of your retirement accounts, making them much easier to keep track of.
- Track Funds
Xillion analyzes all the current holdings in your accounts. Our algorithm helps you understand how your funds perform long term, auto-optimizing your holdings and suggesting better options.
- Happy Retirement
Pick from our algorithm’s suggestions and switch to recommended funds. You’ll know where to invest those underperforming funds, too, so you can maximize your earnings for retirement.
Handling these accounts when you feel like you’re light-years away from retirement might seem a little confusing, but that’s what Xillion is here for. We’ll help you every step of the way - sign up with a free account on the Xillion App today!