Making the most out of your 401K can help you out in the long run when it comes to your retirement, but know about fees so you don’t lose out.
Some people have 401K plans through small businesses will be the most impacted.
Small business retirement plans charge an .88% annual fee for people with a savings that’s less than $25 million, according to The Sun.
This means the fees for a savings of $500,000 would be $4,400.
Some small business retirement plans even charge a fee of over 1%.
401k: Everything you need to know
Other fees with 401K plans
Another fee many could face is the early withdrawal penalty.
Taking money out early, before you turn 59.5 years old, will result in a penalty of 10%.
Withdrawing past that point will result in just paying income tax.
Your tax bracket will determine how much you pay.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected]