Why are 401k plans so popular?
Author: Randy Yingger
Website: http://www.RetirementYes.com
Added: Mon, Jul 3, 2006 18:22:12
Category: Retirement Questions
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401(k) plans are popular because they let an employee allocate a certain amount of his or her salary to a retirement plan. This retirement nest egg is usually tax-free until the retired person begins to take money out of it after retirement.
The employee can also decide the amount he or she wants to contribute from each paycheck to their 401(k) plan. If times are rough, they can reduce the amount and then increase it later on. In difficult times they also take a loan against their 401(k) plan.
See also: Retirement | 401k | Retirement Planning About the Author:
Randy Yingger answers frequently asked retirement questions at PrettyGreatAnswers.com.
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