If you've been involved in online chat rooms, you may have heard of Chat GPT. But what is it, and how can you make money from it? Read on to find out.
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Why investing is essential.
1. Look into retirement accounts
- A standard 401(k) allows you to deduct your contributions from your paycheck so that you don't have to pay taxes on them immediately; you only have to pay taxes when you withdraw the money later.
- A Roth 401(k) allows you to make money tax-free after years of growth, but contributions must be taxed.
- For 2021, the 401(k) contribution limit is $19,500 (before employer match), and the IRA contribution limit is $6,000.
- The contribution maximum for 401(k) accounts (before employer match) is $20,500 for 2022 and $6,000 for an IRA.
- Older workers (those over 50) can make a catch-up contribution of $6,500 to a 401(k), while an IRA enables an additional $1,000 grant.