Facts
about 401(K) account are the following:
<span>1. </span>Employee contributions to a
401(K) are tax deductible
<span>2.
</span>The
employer's plan may not discriminate against lower paid employees
<span>3.
</span>You
cannot put into more than 25% of your earned income which is counted w/your
employer's contribution
<span>4.
</span>Growth
within the 401(K) is tax-deferred until you withdraw your money
<span>5.
</span>If/ when
you die, if you are married & have a 401(K) your SPOUSE IS THE BENEFICIARY.
Federal law says that the spouse is the beneficiary UNLESS they waive their
rights
<span>6.
</span>Tax
sheltered but you can only put your money in investments that have been
approved by your employer (diversify! Don't invest in your company's stock,
look at the fees)
<span>7. </span>You generally cannot withdraw
funds without penalty before age 59 1/2 except under special circumstances.
