401k Retirement Contributions Tips Is Tough Unless You Know Where To Go
When it comes to your money and investments in your future, coming at this topic without the facts can be, not only frustrating, but very serious and financially disastrous to you!
I’m surely not an expert on 401k Retirement Plan info nor is this legal advice but I’ve discovered these to be cold-hard facts about general 401k information and they should at least arm you with enough knowledge to be able to carry on a conversation with someone in the 401k rollovers business.
Even though many people will say bad things about 401ks or IRA’s, here are some helpful tips on how a 401k actually has many benefits:
- Participants age 50 and over can make additional \”catch-up\” contributions of $5,000 in 2008.
- Employees are immediately 100% vested with their own salary reduction tax deferred contributions.
- Turnkey and Internet based plans are available.
- Employers are not required nor obligated to make any contribution to the 401k, although employer may have some obligation to contribute if plan is deemed top heavy.
A 401(k) plan is a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer. The major attraction of these plans is that the contributions are taken from pre-tax salary, and the funds grow tax-free until withdrawn. Also, the plans are (to some extent) self-directed, and they are portable; more about both topics later. Both for-profit and many types of tax-exempt organizations can establish these plans for their employees.
While I know this may not be very extensive information, I hope these basic tips still prove to be helpful to you!
