Hang tight while we fetch the video data and transcripts. This only takes a moment.
Connecting to YouTube player…
Fetching transcript data…
We’ll display the transcript, summary, and all view options as soon as everything loads.
Next steps
Loading transcript tools…
What is a 401k? | by Wall Street Survivor | Wall Street Survivor | YouTubeToText
YouTube Transcript: What is a 401k? | by Wall Street Survivor
Skip watching entire videos - get the full transcript, search for keywords, and copy with one click.
Share:
Video Transcript
what is a 401k presented by wallstreetsurvivor.com
wallstreetsurvivor.com
the 401K is one of the most common
retirement savings accounts the 401K is
set up by your employer and has both tax
and savings advantages here's Samantha
Samantha just started a new job with an
insurance company one of the perks of
this job is 401K matching here is how it
works Samantha earns one hundred
thousand dollars before taxes and is
allowed to put up 6 percent of her
salary in the company 401K program on
top of that the company agrees to match
50 cents for every dollar that Samantha
contributes so if Samantha contributes
the full amount she'll deposit six
thousand dollars into the account her
company will match this by depositing an
extra three thousand dollars bringing
her total contribution up to nine
thousand dollars this contribution is
tax deductible meaning Samantha only has
to pay income tax on ninety four
thousand dollars rather than one hundred
thousand dollars she will only have to
pay taxes when she withdraws the money
from the account usually in retirement
or after 60 when her tax bracket is
lower matching is just one benefit plan
another example could be profit sharing
for example imagine that instead of the
company matching 50 cents to the dollar
they agree to contribute one percent of
the company's profits to Samantha's 401K
because of these benefits the 401K is a
tool companies use for recruitment if
two identical companies offer Samantha
the same salary but one offers 401K
matching or profit sharing Samantha is
probably going to choose that one the
401K is also used as a tool for
retention because of what's also known
as a vesting period vesting means the
contributions are locked in for a
specific period of time for example
let's say Samantha's company tells her
that their contribution takes three
years to vest this means that Samantha
can't withdraw the company's three
thousand dollars for three years one
more thing that you should know if
Samantha quits or is fired from the
insurance company she is allowed to keep
all of her contributions and all the
company's vested contributions however
if she withdraws it as cash she will be
forced to pay taxes and a penalty what
she should do is roll over her
contributions to another registered
retirement account like an IRA for more
on the 401K Ira or other personal
finance topics head over to wallstreetsurvivor.com
wallstreetsurvivor.com foreign
Click on any text or timestamp to jump to that moment in the video
Share:
Most transcripts ready in under 5 seconds
One-Click Copy125+ LanguagesSearch ContentJump to Timestamps
Paste YouTube URL
Enter any YouTube video link to get the full transcript
Transcript Extraction Form
Most transcripts ready in under 5 seconds
Get Our Chrome Extension
Get transcripts instantly without leaving YouTube. Install our Chrome extension for one-click access to any video's transcript directly on the watch page.
Chrome Extension