401(k) Retirement Accounts: All Things Considered
Qualifying for Medicare doesn't mean that your health care costs will be covered. Fidelity estimates that a couple who retires in 2013 will need as much as $240,000 beyond their Medicare coverage to pay for health care costs in retirement. [1] So it's crucial to have adequate savings set aside for your retirement. Assuming you have saved good amounts of money in 401(k), let's look at what the options you have when you retire. Key Facts Your 401(k)s— tax-deferred retirement plans —are before-tax investments and can continue to grow tax-free . Companies also often match your contributions up to a limit. For example, the matching contribution from Oracle is equal to 50% of your first 6% in 410(k) Contributions. which is capped to $5,100 in 2013. However, you do pay Social Security ( FICA ) and other employment taxes on your 401(k) contributions. At the time of 401(k) withdrawals, it will be ...