401k
RETIREMENT
PLAN
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withdrawal, loan, distribution, hardship,
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401k
IRA
RESOURCE ABOUT PLAN
401K LINKS
401K RESOURCES
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SECTION 1
401k
In the United States of America, 401(k) plan
allows a worker to save for retirement while
deferring income taxes on the saved money
and earnings until withdrawal.
The employee elects to have a portion of his
or her wage paid directly, or "deferred,"
into his or her 401(k) account.
In participant-directed plans
(the most common option),
the employee can select from a number of
investment options, usually an assortment
of mutual funds that emphasize stocks,
bonds, money market investments, or some
mix of the above.
Many companies' 401(k) plans also offer
the option to purchase the company's stock.
The employee can generally re-allocate
money among these investment choices at
any time.
In the less common trustee-directed 401(k)
plans, the employer appoints trustees who
decide how the plan's assets will be
invested.
401k
http://en.wikipedia.org/wiki/401k
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SECTION 2
IRA
INDIVIDUAL
RETIREMENT
ACCOUNT
An Individual Retirement Account (or IRA)
is a retirement plan account that provides
some tax advantages for retirement savings
in the United States.
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SECTION 3
RESOURCE
ABOUT
PLAN
Safe Harbor 401(k)
Can be set-up by any employer other than a
state or local government entity
Participant's retirement benefits based on
participant’s account balance
Allows employees to contribute to their own
retirement through salary deferrals, up to
$16,5001 and an additional $5,5001 if age 50
or older
Employer is required to make annual minimum
contributions
The maximum combined employer and employee
contributions are the lesser of 100% of an
employee’s compensation or $49,0001 or more
if catch-up contributions
May exclude certain employees from coverage
as long as annual coverage tests are met
More complex to set up and operate
Annual return could be required
Some annual nondiscrimination testing could
be required
Greater design flexibility
Plan may allow loans and hardship withdrawals
Immediate vesting in full account balance
401(k)
Can be set-up by any employer other than
a state or local government entity
Participant's retirement benefits based
upon participant’s account balance
Allows employees to contribute to their
own retirement through salary deferrals,
up to $16,5001 and an additional $5,5001
if age 50 or older
Although not required, the employer can
contribute to an employee’s retirement
account
The maximum combined employer and employee
contributions are the lesser of 100% of an
employee’s compensation or $49,000 for
20091 or more if catch-up contributions
May exclude certain employees from coverage
as long as annual coverage tests are met
More complex to set up and operate
Annual return usually required
Must usually satisfy annual nondiscrimination
testing
Greater design flexibility
Plan may allow loans and hardship withdrawals
Immediate vesting in employee's own
contributions
Profit-Sharing
Can be set up by any employer
Participant's retirement benefits based upon
participant’s account balance
Can include a feature allowing employees to
contribute to their own retirement through
salary deferrals, up to $16,500 1 and an
additional $5,5001 if age 50 or older
The employer can decide each year whether
and how much to contribute
The maximum annual contributions are the
lesser of 25% of an employee’s compensation
or $49,0001 or more if catch-up contributions
May exclude certain employees provided annual
coverage tests are met
More complex to set up and operate
Annual return usually required
Must usually satisfy annual nondiscrimination
testing
Greater design flexibility
Plan may allow loans and hardship withdrawals
May delay vesting of employer contributions
401(k) Info for Employers
http://www.retirementplans.irs.gov
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SECTION 4
401K
LINKS
401khelpcenter.com
http://www.401khelpcenter.com/
402k
http://www.retirementplans.irs.gov/c
401k.org
http://www.401k.org/
401(k) Plans For Small Businesses
http://www.dol.gov/ebsa/publications/401kplans.html
Employee Benefit Research Institute Data and Research on 401(k)
http://www.ebri.org
Frontline: Can You Afford to Retire?
http://www.pbs.org/wgbh/pages/frontline/retirement/view/
IRS 401(k) Basics
http://www.irs.gov/taxtopics/tc424.html
IRS Publication 575, Pension and Annuity Income
http://www.irs.gov/publications/p575/
PSCA Profit Sharing/401(k) Council of America
http://www.psca.org
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SECTION 5
401K
RESOURCES
Australia's
Superannuation in Australia
http://en.wikipedia.org/wiki/Superannuation_in_Australia
Canada's
Registered Retirement Savings Plan
http://en.wikipedia.org/wiki/Registered_Retirement_Savings_Plan
France's
Special Retirement Plan
http://en.wikipedia.org/wiki/French_special_retirement_plan
Germany's
Betriebliche Altersversorgung
http://de.wikipedia.org/wiki/Betriebliche_Altersversorgung
New Zealand's
KiwiSaver System
http://en.wikipedia.org/wiki/KiwiSaver
The United Kingdom's
Pension Provision
http://en.wikipedia.org/wiki/Pension_provision_in_the_United_Kingdom
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401(k) versus IRA matrix
http://en.wikipedia.org/wiki/401(k)_IRA_matrix
403(b)
http://en.wikipedia.org/wiki/403(b)
457 plan
http://en.wikipedia.org/wiki/457_plan
Thrift Savings Plan- United States federal employees retirement plan
http://en.wikipedia.org/wiki/Thrift_Savings_Plan
Retirement In The US
http://en.wikipedia.org/wiki/Category:Retirement_in_the_United_States
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