401k

401(k) plan is much popular and familiar term in U.S.nowadays, Anyone who understands the value of time and money is much familiar with this term. A small contribution to this plan over a long period of time may results in accumulation of additional wealth in millions of dollars. The reason why many professionals’ financial planners suggest investment and tax advantaged accounts such as Roth IRA’or traditional, municipal bonds.etc.

401k pension plan what is it all about?

401k plan is a contribution or deferment which allows an employee to selects a part of his/her wages to be paid directly or deferred into his/her 401k account for retirement. It is a type of investment of saved money from income until withdrawal.

These plans are usually sponsored by employer for the benefit of employee. The employer decides to deposit the contribution of all or a part of employees in their 401k account or sometime profit sharing contribution. There are also various other investment options which they offer like mutual funds, stocks, money market, bonds, Some companies 401k plans also give you a chance to buy company’s stock. So there is a lot of options to invest your money and also to re-allocate at any point of time.

So invest wisely and enjoy your retirement with your 401(k) plan.