All investments are subject to market risk, including the possible loss of principal. Mutual funds are subject to management fees and expenses.
A retirement account should be considered a long-term investment. Retirement accounts generally have expenses and account fees, which may impact the value of the account.
401K Investing: (How Should I Invest In my 401K?) Real Example Of 401K Portfolio and Allocations
Early withdrawals are subject to taxes and possible penalties. For more detailed information about taxes, consult a tax attorney or accountant for advice.
*Maximum amount of compensation that can be used in determining contribution is $275,000 for tax year 2018 and $280,000 for tax year 2019.
This amount is increased periodically for inflation.
**Based on 2019 IRS Tax Tables.
This chart represents an unincorporated, self-employed, married individual under age 50 with two dependent children, filing jointly. The individual has net business income of $100,000 and the spouse has no earned income. The chart shows the difference between the tax due if no contributions are made and the tax due if the maximum contribution is made to an Individual 401(k) Plan.
While personal exemptions have been eliminated, there is a child tax credit of $2,000 for each child for 2019, subject to phase-out at a higher income level. This calculation has not taken into account the pass-through deduction that may be available.
Actual savings will vary depending on your personal circumstances and the availability of the pass-through deduction.
Please consult with your tax advisor to discuss your specific situation.
1An annual $20 account service fee is charged for each mutual fund account with a balance below $10,000. The $20 account service fee will be waived for the following circumstances: Subscribe to electronic delivery of statements and confirmations; maintain an individual combined balance of $50,000 or more for all T.
Rowe Price accounts (including mutual funds, Brokerage, and Small Business Retirement Plans); or qualify for T. Rowe Price Select Client Services.
Participants can subscribe to paperless delivery via the T. Rowe Price website once their account is established.
If the Participant Account is closed during the year, a $20 closeout fee will be deducted automatically from the proceeds of the total redemption. However, the closeout fee is waived when an account service fee was previously assessed to the participant account for that year or when the proceeds are being used for a rollover, transfer or conversion to a T.
Rowe Price retirement plan account or T. Rowe Price IRA.
2Source: Lipper Inc. 175 of 218 funds (excluding institutional and bank institutional funds as defined by Lipper) more than 6 months old had expense ratios below their Lipper averages based on fiscal year-end data available as of 9/30/18.