A 401(k) is widely used to facilitate retirement savings, providing employees with a tax-advantaged way to build their nest egg. When an employer goes out of business, employees often worry about the security of their 401(k) funds. Fortunately, 401(k) plans are protected by federal laws and typically remain intact. Ownership
Vesting is a process through which employees gradually earn ownership of benefits provided by their employer, such as retirement savings through 401(k) plans or stock options. This process is vital to retaining and motivating employees, as it rewards their long-term service and encourages loyalty and commitment. Vesting opportunities attract top
Once every four years, we get to experience the unique event of a leap year, which adds an extra day to our calendars, making February a 29-day month. As we approach this rare occurrence, it’s worth drawing a parallel between it and the challenge of finding the right employees for
Many people wonder whether they can take a loan from their 401(k) retirement account. While 401(k) loans are an option provided by some plans, there are rules and considerations to keep in mind before deciding to borrow from your retirement savings. Understanding the possibility of taking loans from a 401(k)
An employer-sponsored 401(k) plan is a great way to save money for retirement. With matching contributions from your employer, you are essentially getting free money added to your savings. However, you may not stay with the same employer for the duration of your working years. What happens to your 401(k)
None of us can stay young forever – but no one should have to work for an entire lifetime. It is essential to familiarize yourself with your employer-sponsored retirement plans and the benefits they offer so you are well-prepared for the future. These two types of retirement plans can play
There is no maximum age for participation in a 401(k) plan. As long as you are still working, you are never too old to contribute. If your employer offers group benefits that include a 401(k), you have an excellent way to save for retirement. No matter your age, if you
You are fortunate if you work for a company that offers a 401(k) plan as part of its benefits package. Most plans allow employees to start contributing tax-deferred dollars toward retirement with the first paycheck. Many employers provide matching contributions right away, although some require a year of service before
The money accrued in your 401(k) is tied to your employer. The contributions come directly out of your paycheck, and your employer may match funds up to a specific limit. When you leave that job, you can no longer contribute to the 401(k), but the money you contributed still belongs
If your employer is acquired, the fate of your 401(k) plan may depend in part on what type of acquisition it is – asset sale or stock purchase. In an asset sale, the selling company retains responsibility for the 401(k) plan. Employees of the acquired company that stay on after
