401k Plan Overview
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401(k) Plan is a retirement plan. 401k Plan participant may elect to defer contribution by a specific percentage or dollar amount, these elective deferrals wages are not subject to federal income tax withholding and they are not reflected as taxable income.
Here you got big saving that comes as a part of company contribution part and Elective deferrals to the plan and investment gains are not subject to federal income taxes.
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You will be entitled to all of your accounts under the plan if you retire on or after your normal retirement age.
There are several types of 401(k) plans available to employers - traditional 401(k) plans, safe harbor 401(k) plans
and SIMPLE 401(k) plans. Different rules apply to each. It is important that you become familiar with your plan so that you understand the special rules that apply to you.
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