What is a 401(k)?
A 401(k) is an employer-sponsored retirement plan, sometimes called a defined contribution plan (in contrast to a defined benefit pension plan). It allows employees to make a pre-tax contribution to the plan, up to a specified amount each year. Employers may also make contributions. Most employers choose to match up to a certain percentage of the employee contributions. The plan gets it’s name from Section 401(k) of the Internal Revenue Code.
In order to receive tax benefits for employers and employees, 401(k) plans must be “qualified". Being "qualified" means they must meet certain requirements set out by the IRS.
This is a great benefit if you are lucky enough to work for an employer who has made this possible for you. There are rules to this type of plan and we would find it an honor if you would allow us to educate you from a personal stand point when planning your retirement.
Please call us today for a personal appointment by calling 407-339-5222 or toll free at 800-865-0001
Or you can complete the contact us form and we will have one of our financial retirement specialist call you.
We look forward to working for you. We know you have worked hard for your money and we want to make sure your money works hard for you!