by: Kristen Hicks
We all know we want to retire, but figuring out the right retirement plan to get there can seem pretty complicated. If you have questions about how a 401k works or how to make sure your retirement plan is solid enough, hopefully our 401k FAQs can help.
How does a 401k work?
A 401k plan is a benefit commonly offered by employers to ensure employees have money to retire with. A set percentage is automatically taken out of each paycheck and invested in a 401k account made up of investments (usually stocks, bonds, mutual funds) that the employee can pick themselves.
Depending on the particulars of the plan offered by employers, the money invested may be tax-free and matching contributions may be made by the employer. If either of those benefits are included in your 401k plan, financial experts recommend contributing the maximum amount each year, or as close to it as you can manage.
How much can you contribute to a 401k?
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