The 401(k) plan has become an effective way to save for retirement. It allows employees to put money aside for their future on a tax-deferred basis without feeling the money leaving their bank account. It also encourages them to make additional savings to win those matching contributions. And by adding vesting times, it allows companies to invest in employees knowing that they’re likely to see a return on that investment.
But because the plan depends on the employer, it does have a disadvantage: what happens to your retirement fund if you change your job?
The answer is that a couple of things can happen.
Chapters - Retirement
- The Four Stages of Retirement
- When Can You Retire?
- How Much Will You Need to Save Before You Can Retire?
- How to Create a Retirement Savings Habit
- The Benefits and Costs of a Pension
- Retiring with a 401(k)
- The Benefits of a 401(k) Plan
- The Costs of a 401(k) Plan
- Vesting a 401(k) Plan
- 4 Types of 401(k)
- Rolling Over Your 401k
- Leave Your Old 401(k) with Your Old Employer
- How to Rollover Your 401(k)
- Individual Retirement Accounts—IRAs
- How an IRA Works
- Working Your IRA With Your 401(k)
- 3 Types of IRAs
- SEP IRA Limits
- Annuities
- The Benefits of an Annuity
- Deferred Annuities
- Immediate Payment Annuities
- Fixed Index Annuities and Variable Rate Annuities
- Qualified and Non-Qualified Annuities
- Changing Your Annuity—The Section 1035 Exchange
- The Limits of a 1035 Exchange
- How to Plan for Your Retirement
- How to Start Planning Your Retirement
