What is a 401(k) plan?
The Bankrate.com financial term of the day is: "401(k) plan."
A 401(k) plan has a somewhat funny name but a decidedly serious purpose: to allow workers to build up savings for retirement, typically with some help from the boss. Employees put aside a percentage of their pay to be invested; their employers may partially match the amount put in and may kick in some profit-sharing. Taxes on the income directed into the plan and on the investment returns aren't owed until the money is withdrawn. Withdrawals before age 59 ½ trigger a penalty. Oh, and the funny name? It comes from the section of the federal tax code that authorized these plans.
Participating in your 401(k) plan at work is a good way to start saving for retirement.
To explore your retirement saving options, visit the retirement section at Bankrate.com.
Do you want your kids to be smart about money? Follow these tips to get them started.
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Lengthen the life of your food and broaden your budget with proper food preservation.
Trim the fat around your grocery budget with these money-saving tips.
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Follow this 6-month homeowner countdown so you are ready come closing day.
Pay attention to fees on prepaid cards because in most cases you can avoid them.
Sleep better at night knowing you have extra money tucked away for unplanned expenses.
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A little research could save you BIG on interest.
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