Once at 18 you are legally an adult, but older adults can help. There are some things that another adult may know that you don’t. The typical young adult would probably be able to help you with more tech-savvy-based questions, while the much older adult will be able to help you with things such as: changing a tire, how to check your oil or even telling you what a 401k is. Since it is tax season many young adults like myself are starting to file their taxes and need help. One adult who will be able to help answer some of those questions is Sue Chen, a Senior Tax Advisor, at H&R Block Turbo Tax.
Q: What is a 401k?
A: It is a retirement savings plan sponsored by an employer. It basically lets workers save and invest a piece of their paycheck before taxes get taken out.
Q: How does it help me?
A: Based on your income and filing status, your contributions to your 401k may lower your tax bill.
Q: How many can I have?
A: There’s no legal limit number of 401k’s you have at one time, but you can only contribute new money to the plan of current employer.
Q: What or who is a 401k plan sponsor?
A: Generally the employer, who sets up and oversees your 401k.