The Ins and Outs of Employer-Sponsored 401(k) Retirement Plans
A growing share of U.S. residents isn’t saving for retirement. Whether you’re bogged down by student loans, credit card bills, or other forms of debt, you should try to save money. If you’re new to investing, a 401 K retirement plan might be right for you. Keep reading to learn about the ins and outs of this helpful tool.
What Is a 401(k) Retirement Plan?
Most employers offer non-financial forms of compensation to workers. Common non-financial benefits include paid time off, health insurance, and tuition assistance. 401(k) retirement plans are offered by many American employers, too. Most employers match workers’ 401(k) contributions up to a certain amount. Best of all, these savings accounts offer tax benefits. You won’t have to pay capital gains taxes or dividends taxes. The Internal Revenue Service even allows you to deduct 401(k) contributions from your taxes.
You Can Take These Plans to Other Employers
It’s true that employers offer non-financial compensation to incentivize employees to stay longer. Fortunately, you can leave your current employer without sacrificing your 401(k) retirement plan. When finding a new employer, make sure they offer these retirement plans. To roll your 401(k) plan over, simply inform your employer and they’ll do the heavy lifting for you.
Other Benefits of 401(k) Retirement Plans
Virtually all employers allow workers to automatically make 401(k) contributions, making saving easy. They also hire investment professionals to manage 401(k) funds, helping your savings grow over time.
Get help with your 401 K retirement plan from Mountain West IRA by checking them out at their website.