401(k) Plans

Qualified retirement plan that allows eligible employees of a company to save and invest for their own retirement on a tax deferred basis.  Only an employer is allowed to sponsor a 401k for their employees.  You decide how much money you want to deduct from your paycheck.  Employer can choose to make contribution, but this optional.

Employers are responsible for running the plan in accordance with the law, rules, and provisions of the plan.  This includes deciding who is eligible, how much can be contribute, if employer will contribute and what investment options the plan will have.

• $19,500 under age of 50 can be contributed.
• $25,500 age 50 and over can be contributed.
• Penalties for funds withdrawn before 59 ½.

People should remember funds are at risk  and money is tax deferred not tax free.