Navigating 401(k) Plans Amid Stock Market Fluctuations: Essential Insights You Should Have

(By Ronald Premuroso, Western Governors University School of Business) Recent stock market fluctuations have understandably raised concerns among Americans about their 401(k)s, vital for many retirees. How significant are these impacts? We consulted Ronald Premuroso, an authority on this matter.A 401(k) is a tax-deferred retirement savings plan, where employees contribute a portion of their wages, often matched by employers. Withdrawals typically commence at age 73, subject to IRS regulations. With contribution limits rising to $34,750 in 2025 for those over 50, planning is crucial. Market volatility affects these accounts, but long-term strategies usually mitigate risks.