Named after Internal Revenue Code section 401(k), these employer-sponsored retirement accounts provide a way to save for retirement. Employers may match a percentage of your contributions as an employee benefit, but this amount (and vesting schedule) varies from employer to employer.
Employers also may offer a Roth option in the 401(k) Plan, which permits after-tax employee contributions. The IRS sets the annual contribution dollar limit, which is the same for both regular and Roth contributions in 401(k) plans.
The 401(k) is named after the section of the tax code that first created them in 1978.
For many, a 401(k) is a primary retirement savings plan. Once you leave an employer, you are eligible to transfer your old 401(k) plan accounts to your current employer's plan or to roll it over in an IRA. You can also delay distribution or take a distribution.
Your advisor can explain your options and talk to you more about 401(k) plans.
Anyone who has an employer-sponsored
401(k) plan and would like to take
advantage of this benefit.
Our financial advisors can help you with your 401(k) and determine if it fits into your financial plan.Let's Talk
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