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IRS 401K - Effective Retirement
Financial Planning With Limits



With over 50 million members, the IRS 401k, aka 401(k), is a very popular retirement financial plan.

The IRS plan is for both employers and employees. Small businesses can also join in such a financial plan.

The IRS has established a four (4) step cycle for the plan.

1. Chosing the 401K

This action is primarily for the employer. If you are an employer or business owner looking to establish your own 401K, check here for IRS details.

The maximum employee contribution limit has gone from $15,500 in 2008 to $16,500 in 2009. Plus there is an allowable "catch-up" contribution for those over 50 years...

Employee contributions are always 100% vested. That means you are legally entitled to that money, even though you may not see it, or may not physically bank it, etc. The money is legally yours.

The employer contributions are on a graduated scale. Check with your employer for exact details on your company's specific plan.


2. Establishing the 401K

A bank, insurance company, or mutual fund provider is found to maintain your 401k plan.

The plan is written up. Recordkeeping is developed. A trust is arranged. Employees are informed about the 401k.


3. Operating the 401K

The financial entity to manage the plan is established and ready for business.

All employers have specific 401k guidelines. Check with your employer to find out exactly. Your age (under 21 years), or your length of service could be a factor as to when you can participate.

As discussed above, all employee contributions are 100% vested. The employer contributes on a scale which is explained in part here.

These rules are nondiscriminatory.


4. Terminating the 401K

Your money follows you when you leave your employer. There are specific 401k withdrawal rules and exceptions to be aware of.



Summary


A 401k can and should be considered as part of your employee compensation. However you do not have to pay taxes until you withdraw funds.

A free 401k program is an incentive to employees.

Sometimes, this is not enough for a substantial retirement financial plan. As your 401k planning is limited in the funds you can establish, odds are that you need to do more to plan for your retirement.


An Annuity Has Significant Benefits

An annuity has significant benefts to your retirement financial planning...

You can grow a small monthly amount to a large base for your retirement (deferred annuity)...

Or, you can obtain steady monthly income in the very near future (immediate annuity)...

Get help to get the best for your needs...

Get a free annuity quote - let us help guide you through the options to make the best choices for you!

Or, get a free consultation from a Certified Financial Planner to go over your plans to help you make the



best decision for your needs. 


"You'll be glad you did the right thing."

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