A 401k is an employer-sponsored, long-term savings plan that is intended to help you sock-away money for your retirement. A 401k offers significant tax breaks and has a few drawbacks. The money you put away now to be used later after 59 ½ years of age or at retirement is not taxed until it is distributed. Some companies match part of the dollars that you stash away. Your retirement savings are increased through these employer matching contributions. You can borrow against a portion of a 401K, as long as you pay it back plus the low interest. Otherwise, if you tap into your savings before 59 ½, you pay penalties for early withdrawal and the early distribution is also treated as regular income for tax purposes.
Submitted by Anonymous on
My spouse recently left her employer and has about $200,000 in her 401K with this previous employer. A friend of ours who works for a brokerage firm spoke to us about doing either an IRA rollover or possibly investing in a variable annuity.
Much has been written over the past couple of weeks about the Obama Administration's support of annuities.
The New York Times ran a story about the "unloved annuity getting a hug from Obama."
Bloomberg featured an article in its personal finance section describing the potential, the pitfalls and the overall industry enthusiasm surrounding in-plan annuities.
The federal government has posted a...
Submitted by Anonymous on
Why does the Obama Administration seem to obsessed with offering annuities through employer-sponsored retirement plans?
