Securing the Future
Since most companies no longer provide pension plans for employees the 401(k) plan has become a very popular benefit that companies choose to provide. This plan allows employees to invest a portion of their paycheck into a variety of investment vehicles the employee might choose. Most 401(k) plans include an employer match to incentivize contributions usually up to 3% of the paycheck. There are many ways the 401(k) can work, with various tax benefits and implications for employers and employees.