Unique Original Articles » Advantages of the 401k Retirement Plan

Advantages of the 401k Retirement Plan

Author: Kimberly Rand

The 401k plan is no doubt one of the best retirement plans in the world today. This can be proven by the number of individuals and companies investing in it. If you are new to the corporate world and would want to prepare for your retirement early, this is one retirement plan you should invest in. It is true that there are other pension and retirement plans you can avail yourself of, but the advantages of the 401k should be enough to compel you to try it instead.

One of the major advantages of the 401k retirement plan is that you, as the investor, have the freedom to decide how much you want to invest. This is a huge difference between this plan and traditional retirement plans that collect a fixed amount of money from investors. When choosing how much you want to invest, though, you should not forget that there are 401 k contribution limits to consider.

Another huge advantage of this plan is that it is tax-deferred, which means your income will not be taxed until the time you collect your benefits. This will give your money enough time to build interest and grow. Furthermore, with this plan, you do not just get to invest in whatever stock your company has, but in various mutual funds, CDs, and stocks as well.

Lastly and most importantly, you are allowed to “roll over” or transfer your 401k should you choose to change companies. This is not something that all retirement funds allow you to do. What is more is that most companies have a matching program, where each amount the employee contributes to his plan is matched by the employer. This alone can already be a source of profit for employees and something that should be taken advantage of.

There are many things you need to learn about the 401k first, however, such as the fact that you need to be aware of the 401k contribution limit set by the IRA. Meanwhile, you should talk to a reliable financial adviser who can give you tips on how you can get the most out of the 401k. On the other hand, you can also search the World Wide Web for more information regarding this retirement plan.

Learning more about the 401k and the 401 k contribution limit is essential if you are to take advantage of the full benefits of this retirement plan. Talk to an adviser today and find out how this retirement plan works and how it can help you prepare for your golden years.


Article Source: JS2 Article Marketing


Spinit

All articles are submitted by users, we take no responsibility for the content of any articles. Users have given permission for others to use these articles in exchange for credit in the form of a link back to the author's website. For removal requests please contact us at http://www.jetpackedsupport.com