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Keeping Tabs on Your 401K

401k. Some may think of it as a retirement account. Others may think of it as the financial vehicle that helps cushion their retirement from income loss and provide them with a financially independent future. Either way, watching your 401k closely is the best way to ensure you are getting the most out of your retirement savings. 401k, or a retirement plan offered by an employer, is a fantastic tool to help you get the retirement you’ve been saving for. However, as most of us know, it’s not as easy as it sounds. Most 401K plans are complete black boxes, and no one knows what’s going on inside. That’s why it’s a good idea to research the best 401k for you – can help you with this.

Imagine not knowing if your retirement account’s balance was where you thought it was and then finding out that someone had stolen it. You could call the police, but what if they didn’t know who stole it? You could report the theft to your administrator, but your options are limited.

Americans like to think of themselves as smart, knowledgeable consumers. But when it comes to an understanding of the intricacies of their retirement savings, too many are still in the dark. In order to get your finances in order, it’s important to know how your employer contributes to your 401(k) plan, as well as how you can manage and move those assets to get the highest return. After years of saving and investing, you finally decided to open a retirement account. You may be excited to start investing your hard-earned money, but have you thought about what to do next? The next step is usually to download a relevant retirement plan application, but you should take a few minutes to learn about it before you do.

401k is the abbreviation for a savings plan, a tax-deferred savings plan, which is used for an individual to save money for his future, but the contribution to the 401k is limited to $18,500 in 2016. The 401k plan is automatically allocated to the employer for the employees, where the employer would match the employees’ contribution up to the maximum amount permitted by the IRS. The employer would also pay all the employer’s share of retirement savings, such as Social Security and Medicare taxes, and the employee would have to pay the matching amount.

401k is a type of retirement plan that many people choose to invest their money in. One of the more common terms used to describe it is a “401(k) plan”. What people often do not understand is that the primary purpose of this type of plan is to save money for retirement. As such, it is often the best choice for many people. 401K stands for “Retirement Plan” and is similar to a 401k (as in the savings plan that many employers require their employees to join). Essentially, 401Ks act like your own personal retirement fund that you can use to fund your retirement. This could be a highly beneficial strategy for saving in the long run. Often we are never sure about what we might need to spend our money on as we grow old, we could have a simple retirement, however, we might need to use assisted living facilities, similar to ones offered on websites such as, along with other requirements to help us possibly live more comfortably as we age.

However, there are many who do not take into consideration the above-mentioned facts and save for the future. Those are the people who can often end up having not a single penny in their savings account, which prevents them from availing of the basic necessities during their retirement. For instance, people who fail to consider that they might need to opt for an assisted living facility or hire a skilled nurse as an in-home caregiver (interested individuals can learn more about assisted living vs. skilled nursing by going through resourceful posts) as they age, often end up being miserable during their golden years as they usually do not have the funds required to avail of the care they need when they suffer from joint aches or other ailments.

Anyway, coming back to the topic of 401 (k), when an employee gives up their high-earning job and begins to work at a new one, it is important to make sure that the employer is aware of what the employee is entitled to receive from a 401K plan. Although the employer is not legally required to provide the employee with a 401k, it is in the interest of both the employee and the employer to make sure that the employee is not short-changed on the account.

The 401(k) plan is a retirement savings program that allows you to defer a portion of your pay to save for future retirement. The maximum contribution limit for 401(k) plans is currently $18,000 per year, with a catch-up of $6,000 for people age 50 or above. 401Ks are commonly known as “pre-tax retirement accounts.” In a nutshell, they are accounts through which a company provides a tax-deferred retirement benefits to its employees. 401K contributions are made by the employer amounting to 8% of the employee’s salary. The employer is also compensated by the employee with a matching contribution amounting to 3% of the salary. The money is then invested in an investment account, credited to the employee’s account after he completes his service.

401Ks have been around since the 1970s, and now more than 70% of workers have one. (Source: A recent survey found that 70% of workers have a 401(k) plan, up from 66% in 2011.) With the popularity of these plans increasing, make the amount of decisions you need to make about them. Will you roll the funds into an IRA? Will you leave the money in the 401(k)? How much should you contribute? These are questions you may not have considered before, but it’s important to know how you’ll answer them. A 401(k) plan is an excellent tool for retirement, but it can be complicated to learn how to navigate.

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