If you are living and working in the United States, you are definitely fortunate because you are capable of saving for your retirement and at the same time defer present income taxes on your saved funds and earnings until such time that you can carry out distributions or withdrawals. You can choose to place a portion of your wage or income to be directly paid or deferred into a 401k account, which is recognized as a contribution.
In actual fact, this retirement investing option is an employer-sponsored account. Your employer or company has the full discretion to grant you benefits as their employee by optionally selecting to match up part or all of your contribution by means of making additional contributions in your account or grant you with profit sharing benefits in your retirement account. Continue reading ‘401k Account – Are You Eligible?’ »