The 401(k) website is the most important login details to keep secure. This implies the correct answer is 3.
A 401 (k) is a retirement saving plan and it is sponsored by your organization or your employer. The 401 (K) enables employees to save a certain amount and invest some of their earnings before deductions (taxes) are removed from their paycheck.
<h2>Further Explanation</h2>
However, there two basic types of 401(K) accounts and these include
- Traditional 401(k)s
- Roth 401(k)s
401(k) allows employees to manage how their money is invested and most of the plans provide mutual funds that are made up of stock, money market, and investment.
Also, both the employee and employer can contribute to the account as much as the dollar limit that is determined by the internal revenue service.
There is a certain amount that both the employer and employee can contribute to a 401(k) plan, which is also adjusted based on inflation. As of 2019, an employee can only contribute $19,000 a year for workers below the age of 50 while $25,000 is the dollar limit set for workers above the age of 50.
However, if employees decide to move from the company where they have 401(k) plan to another company (in case of changing jobs), they at liberty to withdraw their money, roll it over to an IRA, leave with their old company or move it to another company.
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KEYWORDS:
- 401(k) website
- employee
- employer
- internal revenue service
- contribution plan