A 401k is a private employer-sponsored retirement account that an employee may contribute to straight from their paycheck. With a 401k, workers can save and invest part of their paycheck before taxes are removed. In a 401k, employees can control how their money is invested. Typical investments include mutual funds that contain stocks, bonds and money market investments.
Employees choose a percentage of their salary to contribute to a 401k. This is called “salary deferral,” because this money that comes out of their check will be paid back to them with interest when they retire. Another incentive to sign up is that many employers match the employee’s contribution to their 401k with company funds.
And, Why Should I Have One?
Many people sign up for a 401k, because the employer match provides essentially free money that will be available in retirement. Financial planners suggest that an employee should contribute the maximum percentage allowed by their company to take full advantage of this incentive. 401k employer matches, which are chosen by each company, can vary from 50 percent to 100 percent.
Questions? Call us at Mintco Financial at 813 964 7100. Want to review your 401k? Rollover? Email us or call us at mminter@mintcofinancial.com
Visit www.MintcoFinancial.com
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