In 1978 two important things happened, Garfield, the Cat, debuted on newspaper comic strips and the IRS established section 401K to the internal revenue code. Section 401K of the IRS code allowed employees to make tax-deductible contributions to an Employer-Sponsored Defined Contribution Plan. How it works: An employer establishes a 401K plan that suits the …
A Roth IRA is an Individual Retirement Account (IRA) funded with after-tax dollars. The already taxed dollars are invested in the Roth IRA, and if specific rules are followed the funds that were contributed plus the growth can be withdrawn after age 59.5 tax-free. The rules: To invest in a Roth IRA, the individual must …
