401(k)s

[peejay 327]

A lot of employers are getting away from the old-fashioned pension plans of the past and putting the responsibility on the backs of the employee through a 401K. It's your life. If you don't put away for the day you retire...so bad, so sad. We all have to lay in the bed we make for ourselves.

Even if your employer doesn't match any contributions, it's still a good deal. Most plans allow you to contribute on a pre-tax basis. This means that the contributions for that tax year are not included in taxable income for that year. Your taxes are less because your taxable income will be less the amount you contribute to the 401K plan. It will be taxed in the distant future on a defered basis as it is withdrawn in retirement. For most of us this is beneficial.

If your employer matches a percentage of your 401K contribution, you will miss out on free money if you do not participate at least the minimum amount the plan requires. Why give away a freebie for something that you really should be doing for your own retirement years?

If you quit working for that particular employer, you can roll your 401K savings into a new employer's plan or have it transfered to an approved private account at a bank, brokerage, or investment institution.

In my opinion, it is wise to get into a 401K whether your employer matches or not. Anyone that thinks the US government will take care of them in old age is a fool. Or you can keep wishing that you win the lottery.

[ChristinaM 0]

I have a Simple IRA instead, becuase it's what my company offers. They match the 3% I put in, and it's nice to see it building little by little. My hubby cashed his out to feed us

[Jasman0717 9]

I've had mind for over 20 years and also now have a 457K It is great, pre-tax investments. I stongly recommend anyone that has this type of investment available that they take advantage of it.

[workin4somethin 0]

I’m glad to see all the enthusiasm about saving within an employer sponsored retirement plan. Other than tax evasion, a qualified retirement plan such as a 401(k) plan is the best way to save for the future. I’ve been a professional 401(k) plan administrator for over 15 years.

[luvaLimey 0]

I had a great 401K with my previous employer where they matched 100% up to 6%, so that's what I contributed.

I had quite a bit in it after only 3 years working there. Then, I got laid off. I was planning on rolling over my 401K to my next employer (that's the beauty of a 401K - you can take it with you when you leave a company) but then my ex insisted on half of it during our divorce.

so I paid thousands in early withdrawl penalies, divided the remainder in half and gave that half to my7 ex. I ended up with maybe $6k left after that. But it turned out to be a good thing I'd withdrawn it becuase my severance ran out before I could start claiming unemployement and I needed it to live on while I was looking for another job. (which took another year to accomplish)

401Ks are great. I just wish my present employer offered one.

[Kajikit 65]

John said he was going to start one but nothing happened... I asked him about it the other day and he said he's not eligible until he's been with the company a year. So we'll be starting one come November...

[shannon65 2]

I have one but I have not contributed to it for the past few years because of heavy debts I have to pay..but do intend to start up again. I wanted to cash it in at one point but as long as I work for this company they don't allow it.

[Nikita2Charles 32]

401k is a great saving tool.

Your money is taken Before Tax deduction

Let say you make $1000 a week and you put 10% of your income on your 401k plan

What happen: NO 401K

Instead of paying taxes on $1,000 now you owe taxes only on $900

28% tax bracket

Take home pay 900-252

=648

NO 401k

1000-280=720

So it's a $72 difference but with 10% toward your 401K you would save

$100.

PRO

Nice saving when you retire

BIG PRO= IF you are purchasing a house, you can borrow money from your 401k for that purpose,

COmpany matches your funds most companies match up to 3%

CON

Buying a house, you have to pay it back, but on the good side It's like paying yourself back.

CON

You can not take that money out, until you retire.

[Elizabethnhenry 0]

I agree with everyone that says do it as fast as you can. My company matches dollar for dollar, so I am blessed by that. Even though I am very conservative and have 30% in cash, it has grown tremendously over the past 10 years. The 401Ks from previous job was rolled over into an IRA. Good Luck.

Here is a link from a 401K help center. http://www.401k.org/401k.html

[mawilson 2,133]

I recently started mine and am curious how many have 401(k) plans...

[Marilyn. 340]

we have one but we were bad and took out a loan on it because we needed to pay off our credit cards

the interest on the loan is much lower then the credit cards plus it will be all in one payment....

[Arazia 0]

I have a 401k plan, but I wish it would grow faster. *pokes it*

[mawilson 2,133]

I have a 401k plan, but I wish it would grow faster. *pokes it*

[Marilyn. 340]

we have had ours for about 2 years or so and we have a pretty good sum in there right now.. well minus what we took out for the loan

hubby's company gives 100 % up to 4 percent of what we put in...

[Trompe le Monde 1,107]

we have had ours for about 2 years or so and we have a pretty good sum in there right now.. well minus what we took out for the loan

hubby's company gives 100 % up to 4 percent of what we put in...

Wow! That's pretty generous. My company matches half of what you put in and they usually put in about 4% of your salary as a profit sharing bonus, which I think is pretty good.

I also allocate money for some more aggressive investments including stocks.