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Benefits of Opening a 401k Plan

Posted on: 12th Nov, 2006 10:10 pm
Here are some reasons why you should open 401k plan if it offered by your employer.
  • Your contributions are made easy as they are automatically deducted from your pay checks. And also your investments are made to the fund you choose this helps in reducing the risk to a certain degree.

  • You need not pay nay income tax on your contribution until you withdraw that money.

  • You can choose the amount that you can afford to invest in your 401k plan up to the maximum allowed by the government.

Thanks,
Jerry
Hmm!! the points that you mentioned above have convinced me to invest in401k but, what if I change my job, will I loose my 401k plan?
Posted on: 13th Nov, 2006 12:54 am
You need not worry even if you change your job. Your money in your 401k plan can be rolled to your new employer or an IRA. You don’t need to cash in lose your existing 401k account when you change your job.

For more information on this topic please visit our section on 401k.

Thanks
Allan
Posted on: 13th Nov, 2006 01:07 am
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