401(k) plan is the most popular type of employer-sponsored retirement plan in America. Millions of retirees depend on the money they have invested in these plans to provide for them in their retirement years, and many employers see a 401(k) plan as a key benefit of the job. Few other plans can match the relative flexibility of the 401(k).
- Because 401(k) are qualified retirement plan, are eligible for special tax benefits. Do you know what these are?
- Are you investing part of your salary, up to an annual limit.
- Do you know if your employer is matching some part of your contribution.
- The money will be invested for your retirement, usually in your choice of a variety of mutual funds. We advise our clients
- Does your employer offer a Roth 401(k). The type of account requires the employee to pay income tax immediately on the contributions. However, after retirement, the money can be withdrawn with no further taxes due on either the contributions or investment earnings.