401k retirement plan is a good option to save for future. Not only it is tax saver but also ensure good returns and is safe too. As employer and employee both make contributions so funds grow to sustantial amount till the time of retirement come. 401k Retirement Plan An Effective Saving Tool
Retirement is a word that brings chill feel to spines but when it is well think of in advance then this same word stands for long deserving restful life after hard days of work. Retirement plans contribute much to this comfort and 401k Retirement plan is one out of good considered retirement plans.
Various retirement plans have different features and it is possible that one plan which is most suitable to your friend could not serve you same way depending on the type of job, income or other related facts. Retirement planning should always be custom designed to get maximum benefits.
401 retirement plan is a popular plan and many of the people opt for this. In this saving plan both parties i.e. the employee himself as well as the employer makes contribution to the retirement fund. Say if you
contribute x % of your annual salary to this retirement plan then your company would also have to make matching contribution towards this account.
This plan is also attractive for the reason that it helps in tax saving. In 401 Retirement plan, contributions deduction is from pre tax salary and these savings accumulated tax free until the time of retirement or withdrawal time and thus helps significantly in tax saving as at time of retirement you probably would have lower income slab and thus lower tax rate.
Funds in your 401k Retirement plan are economic crises proof that means that if in case the contributing employer goes bankrupt then even the funds will be safe and cannot be consider as the asset of your employer, not even for his contributing part. Further, there are various restrictions on before time withdrawal of fund money and this will surely keep you in check if you are one out of undisciplined spenders.
Several other features of 401k retirement plan includes roll over facility that enables you to shift to other plan in case you change your employer. Moreover, under 401K retirement plan you get some freedom as regards to investment of money and can put it into mutual funds, stock market, or other bonds whichever you found most paying.
401k retirement plan has different versions for different working groups. Like for selfemployed people there is Solo 401k retirement plan that takes into consideration their income structure and thus have provisions suiting the need of a self employed person.
However, tremendous information is available on the internet about 401 retirement plan but if you have any doubt or want, best options sorted out then can always seek help of a professional. For starters, 401k retirement plan calculator is also a good tool and is available on many sites. In this, you have to fill some information and its result will show the information regarding money available at retirement time, interest earned and other such things.
So, go ahead and be smart by choosing 401k retirement plan.