401 Contribution

[agnes23as]

if you are employee and are in age of 22 or more you need to consider to contribute to your 401 (k) retirement plan, and you should consider funding maximum amounth each year. In 2008 individuals are permitted to sock away up to $15,500 annually on a pretax and or post tax pasic, and for those people that reach age 50 by the end of the year, there is a catch up provision wich allow contributions of another $5000 this will allow total $20,500 for individuals not for employee

I want to share one example that came to my mind
If you are individual who is 40 years old or let say around 40 and if you contributes $15,500 annually to a 401(k) you could accumulate more than $1.2 million in savings by age 65. This assumes an 8% return. Retirement with 1.2 million dollars will satisfy you but you need to remeber that inflation can eat your profit with your money so remeber you need to have additional 5% of funds contribute to your 401 (k) to " match your profit with inflation" otherwise you will not be able to succesful retire

[frank21s]

I have contributed for my 401 k for over 40 years and I have accumulated over 1.3 million now! this is great plan but you need to consider to put away every single year about $4,000 and invest in security!such as mutuals funds, bonds, and stocks! don't put all your investment in one basket!

[Batman]

401 K give you very good benefit for your retirement plan, you as a employee contribute to your 401k plan a portion of your income and is pre-tax mean you don't pay now tax but when you start contribution from your 401k plan you will pay a tax. The maximum amount of contribution is limited by the federal government and the plan itself. An employer can elect to contribute tax-deferred matching funds into the employee's account but is not require if you put $3,000 they will match you will 100% free money . This type of plan is called a defined contribution plan since the employee decides the percentage of their income to contribute. Once the employee retires, their distribution will depend on the amount the plan has grown if you died before 65 your spouse will take care of those money

[barry]

I recommand to contribute to your 401 K because if you are in retirement age you will seek for money and you will not be able to work all your life! Stop couting for your social security benefit. You will not be able to collect social security because all social security money will be spent for those people that are currently in retirement age!

[fcmoney]

Government will allow extra contribution to 401 K plan in addition you may have IRA traditional of $1,000 start in 2010

[robertmc23]

I have accumulate on my 401K almost $80,000 and still contributing money to my retirement plan because once I retire I want to distribute lump-sum !

[itguy]

when you invest in 401K plan make sure you dont exeed your annual contribution limit and don't be stupid contribute $4,000 into one IRA account and contribute another $4,000 on diffrent brokerage account this will not work because all brokerage account are linked even you don't know that! Etrade for example exactly know how much money you have in FIDELITY investment brokerage account! but they will not tell you that they no ofcourse if you ask them they will tell you , you are fool but I uses to work for those 2 company! even those 2 companies are big competition to each other competing for new client still work togher to develop business and great great security vision!

[mojehaslozgaslo]

Contributing $4,000 to your Retirement account with 15% Annual Return on Investment should give you pretty good return, when you start distributing money from retirement account don't consider lump sum and spend in one month rather that distribute money sporadically , try to invest those money and work on second source of income! such as home equity or business equity!

[bika]

My father is putting money in 401K. I dont understand what it is but he says he will have lots of bucks when he gets retired.