I finally have a job where the company gives a match into the 401k, so I decided to sign up. My question is, is the companies contributions to my 401k taxable? If they say they are giving me 50 cents do I really get the 50 cents or is it 50 cents - tax?

 

Pre-tax

 

and take advantage of the whole amount, even if its a stretch for you. Its the best thing you can do!

 

All contributions (individual or employer) are pre-tax.

 

you get fitty cent

 

but you pay taxes on all of it when you're an old fart and take it out

 

401k = awesome

 

A couple of things to keep in mind regarding 401ks. First and most important: Make sure you put enough money into it to get the full company match.
After that if you still have money to invest then put it inside a ROTH IRA. The reason being is that we are at an all-time low in terms of taxes. With the deficits the country is currently running and the future doom of the SS system, taxes will have to increase to fix those 2 problems. How much? Who knows, but it is a good bet to pay taxes on the money now and not later when they will be much higher (even though you will be in a different bracket because of age).

 

Yeah, I'm thinking the roth IRA is almost a better way to go. Who knows what the tax rules will be like 20, 30, 40 years from now. If your company doesn't match or if it is a poor one, go roth. But don't give up that company match if it's good.

 

My company only contributes 2% but my funds are on fire this year.

I've only been in the 401k plan for just over 2 years now and despite being 40% vested I have over $8,000... total being $11,000 but it will take another 3 years to be 100% vested.