Finance nvesting in a 401k is the preeminent way to save for retirement. The new Roth 401k is a .bination of the traditional 401k and a Roth IRA. According to CPA Michael Goodman, the major difference between the Roth 401k and the traditional 401k is pay tax now versus paying tax later. And now we learn that saving in a 401k is vital to your financial health. Actually, it is named after a section of the Internal Revenue Code in 1978, a 401K is an employer-sponsored qualified retirement savings plan. You see, the 401K is a great way to defer taxes. The 401k limit 2007 is $5,000 (adjusted for inflation in $500 increments), The 401(k) contribution limits will be returned to the 2001 level on January 1, 2011 unless Congress extends the increased limits beyond that date. Your 401k is yours and the .pany can not touch it no matter what you do. Any money you put into a 401k is yours forever unto the end of time. A new study found that $1 in $4 of the money people have in 401k is in .pany stock. Keep in mind the post tax amount being contributed to 401K is actually going to be taxed. A better way to get at your 401k is to take out a loan, which many plans allow. The biggest mistake people make with the 401K is in not using it. Since the 401k is funded by employee deductions, it remains the property of the individual employee. If the 401k is from a former employer, he can’t borrow directly against it or use the money (tax free) under normal circumstances. Although the 401k limit 2007 is $5,000, a 401k is not a savings account or a credit card although plenty of people often treat them as such. Borrowing from your 401K is probably the smartest move of all the options because, here again, you will be paying "yourself" back with interest. Contrary to some very bad reporting by some very bad journalists, your 401k is NOT protected by the PBGC. There’s a need for new kinds of plans that take the best of the old style pension plans and maybe merge them with 401k plans. Most of the retirement plans available today, 401K, 403B, 457, IRA, are creations of the tax code designed to take advantage of tax laws. SIMPLE IRA plans are maintained on a calendar basis. Remember that 401k limit 2007 is $5,000 if you want to max your retirement contributions you should look into the individual 401k aka solo 401k instead of a SEP IRA. One of the benefits of a 401k retirement plan is that it can follow an employee throughout his or her career. You will be rewarded for outstanding performance through salary, benefits, 401K matching, stock index units and bonus opportunities. Employee benefits earned during the marriage, including most pensions and 401K plans are .munity property that will be divided in a divorce. Investing in a 401k is simply a great deal, so please contact your Financial Advisor for more information. About the Author: 相关的主题文章: