how a 401k works
TRANSCRIPT
No, it ain’t rocket science!
he selects how much
he wants deducted
from each paycheck
to go into his 401(k) –
his
That means for
each dollar
Sam contributes to his 401(k),
his company contributes
50 cents!
next he selects the funds he
wants to buy for his 401(k) from
his plan’s list of
investment choices
these are his
(also called a )
then Sam decides what
percentage of his
(his plus the company match)
will be used to buy
each fund he selected
Sam may put 20% of his total
contributions into Fund A,
15% into Fund B,
and so on
until he has his ‘spent’ his
total contributions -
this is called
The only investing site on the ‘net
designed by working folks
for working folks!