401(k) Plan Education
The most common way to save for retirement is through a 401(k) plan and even seasoned investors have many questions: How much can I contribute to a 401(k) plan? What is an employer match? Do I get to keep my money when I leave? Where do I invest my money?
We provide with the complete detials on how these plans work so that you can make informed decisions to build your nest egg. Choose your category below and become more education personal finance manager!
401(k) Basics Explained
401(k) is an employer-sponsored retirement plan in which you deposit money directly from your paycheck and into specified investments as a source for retirement.
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401(k) Employer Vesting
Every employer has a vesting rule that determines when you will be eligible to keep every dollar that they matched in the 401(k) plan.
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Dollar Cost Averaging
When you invest in your 401(k) on a regular basis, this means that you are buying when prices are low as well as they high and this is a proven investment strategy.
401(k) Employer Matching
If you employer offers a 401(k) plan typically the offer a matching plan that can help you add more money to your retirement.
401(k) Fund Selections
Your employer plan will provide many mutual fund choices and you need to determine your investment style and what funds that you want to invest in.
401(k) Loans
Money in a 401(k) can be borrowing against in a form of a loan where they money is paid back without penalty.
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401(k) Contribution Limits
The IRS has maximum contribution limits that are reviewed each year. They also allow for additional money to be invested in an account which are called catch-up contributions.
401(k) Asset Allocation
Within a 401(k) you choose where money will be invested from each paycheck, but money can also be transferred to other accounts.
Hardship Withdrawals
Money can be withdrawn in extreme cases for a hardship situation that comes with stiff penalties.