how a 401k works

15
No, it ain’t rocket science!

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Page 1: How a 401k Works

No, it ain’t rocket science!

Page 2: How a 401k Works
Page 3: How a 401k Works

he selects how much

he wants deducted

from each paycheck

to go into his 401(k) –

his

Page 4: How a 401k Works

That means for

each dollar

Sam contributes to his 401(k),

his company contributes

50 cents!

Page 5: How a 401k Works

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 )

Page 6: How a 401k Works

then Sam decides what

percentage of his

(his plus the company match)

will be used to buy

each fund he selected

Page 7: How a 401k Works

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

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