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Apr 12 2007
By: docking101 Treasure Hunter 8728 posts
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401k plans in retirement

9 replies 7 views Edited Apr 12, 2007
Can somebody please explain it easily? I've heard of them so much and I have always wondered how they work.
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Treasure Hunter
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Re: 401k plans in retirement

Apr 12, 2007
it is a type of employer-sponsored retirement plan in the United States and some other countries, named after a section of the U.S. Internal Revenue Code. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or "deferred", into his or her 401(k) account. In participant-directed plans (the most common option), the employee can select from a number of investment options, usually an assortment of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above. Many companies' 401(k) plans also offer the option to purchase the company's stock. The employee can generally re-allocate money among these investment choices at any time. In the less common trustee-directed 401(k) plans, the employer appoints trustees who decide how the plan's assets will be invested.

wooo wikipedia


Message Edited by TJ32 on 04-11-2007 08:40 PM

Message Edited by TJ32 on 04-11-2007 08:40 PM
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Treasure Hunter
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Re: 401k plans in retirement

Apr 12, 2007


TJ32 wrote:
it is a type of employer-sponsored retirement plan in the United States and some other countries, named after a section of the U.S. Internal Revenue Code. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or "deferred", into his or her 401(k) account. In participant-directed plans (the most common option), the employee can select from a number of investment options, usually an assortment of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above. Many companies' 401(k) plans also offer the option to purchase the company's stock. The employee can generally re-allocate money among these investment choices at any time. In the less common trustee-directed 401(k) plans, the employer appoints trustees who decide how the plan's assets will be invested.

wooo wikipedia


Message Edited by TJ32 on 04-11-2007 08:40 PM

Message Edited by TJ32 on 04-11-2007 08:40 PM

I'm smart enough to check wikipedia and google. I just want a simple and easy to understand answer.
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Gaming Beast
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Re: 401k plans in retirement

Apr 12, 2007
you invest in the retirement plan and your company will match a certain percentage over time = money when you retire......Just a hint, the more you invest the more you earn............. 
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Treasure Hunter
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Re: 401k plans in retirement

Apr 12, 2007


superman2169 wrote:
you invest in the retirement plan and your company will match a certain percentage over time = money when you retire......Just a hint, the more you invest the more you earn............. 


So basically say I invest 100 dollars (nobody would really pay that little) and they put 10% into my retirement plan so I get 10 dollars added to my retirement plan?
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Treasure Hunter
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Re: 401k plans in retirement

Apr 12, 2007
basically here is how my 401k works.   I am able to contribute to my 401k through pre tax contributions which are taken out of your pay check automatically.  after 1 year of service my company matches my contribution by up to 5%. after i accum ulate some money I am able to move my money around betweeen several types of account ranging from conservative to aggresive types.conervative being that you make steady money but not as much as say an aggresive account which you can make alot of money but you can also lose alot of money.  then you are ablso able to take a loan out against your 401k and pret ax deductions are made on your paycheck to pay this loan back and they break it down over like 4 years.  i hope thats simple enough.  3-2 in 5th inning, you guys up
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Treasure Hunter
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Re: 401k plans in retirement

Apr 12, 2007


ZOFOURTWENTY wrote:
basically here is how my 401k works.   I am able to contribute to my 401k through pre tax contributions which are taken out of your pay check automatically.  after 1 year of service my company matches my contribution by up to 5%. after i accum ulate some money I am able to move my money around betweeen several types of account ranging from conservative to aggresive types.conervative being that you make steady money but not as much as say an aggresive account which you can make alot of money but you can also lose alot of money.  then you are ablso able to take a loan out against your 401k and pret ax deductions are made on your paycheck to pay this loan back and they break it down over like 4 years.  i hope thats simple enough.  3-2 in 5th inning, you guys up


Alright I'm understanding this better now thanks. I don't have a TV in the room I'm in so I can't watch the game. I got work to do . But nice pitching there I must say by Perez Smiley Tongue
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Treasure Hunter
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Re: 401k plans in retirement

Apr 12, 2007


hkkevinc wrote:


ZOFOURTWENTY wrote:
basically here is how my 401k works.   I am able to contribute to my 401k through pre tax contributions which are taken out of your pay check automatically.  after 1 year of service my company matches my contribution by up to 5%. after i accum ulate some money I am able to move my money around betweeen several types of account ranging from conservative to aggresive types.conervative being that you make steady money but not as much as say an aggresive account which you can make alot of money but you can also lose alot of money.  then you are ablso able to take a loan out against your 401k and pret ax deductions are made on your paycheck to pay this loan back and they break it down over like 4 years.  i hope thats simple enough.  3-2 in 5th inning, you guys up


Alright I'm understanding this better now thanks. I don't have a TV in the room I'm in so I can't watch the game. I got work to do . But nice pitching there I must say by Perez Smiley Tongue


just pm me if you have any further questions...rollins just hit a triple
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Treasure Hunter
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Re: 401k plans in retirement

Apr 12, 2007
Ok here: A portion of your check automatically goes right to your 401k. At the end of the year, your company will match a set amount (x%) of that.
 
ex: $2,000 dollars goes to the 401k from the whole year's checks. the cpmpany says they'll match 10%
2000+200= $2,200 for that year in your 401k
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Fender Bender
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Re: 401k plans in retirement

Apr 12, 2007
They are not to be trusted!


I Play the DEEF Wha?
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