If you have a 401(k), any other retirement plan, or anything that ties into the stock market in general, then this article is for you. I’m going to tell you seven ways to protect your 401(k) from a stock market crash so that if it does happen, at least you will be prepared.
What Is a 401(k)
The 401(k) is an employer-sponsored, tax-deferred investment plan specially designed for retirement. It’s a particular type of investment account that an employer opens on behalf of their employees to deposit a portion of each employee’s salary and sometimes another voluntary contribution to match that of the employee.There are two types of 401(k)s, the traditional 401(k) and the Roth 401(k). In the first case, contributions are made pre-income tax, and your taxes will be deferred until you withdraw your money during retirement. The Roth 401(k), on the other hand, allows you to make post-tax contributions, so you won’t have to pay any more taxes in the future.
