It is a defined-contribution plan through which the employee chooses to participate and defer a percentage of his or her salary. That amount is deducted from his or her salary each pay day and is invested in a retirement plan, free of taxes. While it is in the account, your money grows on a tax-free basis, with a compound interest effect, until you begin to receive distributions, which generally occurs upon retirement.

Once you join the plan, the percentage you choose will be deducted from your pay. The percentage may be as high as 10% of your salary or $8,000, whichever is less. See similar questions...

The assets in the plan are held in a trust. The employer names Banco Popular as plan's trustee to safeguard and invest the plan's assets according to the participant's or the employer's instructions. See similar questions...

Your 401(k) plan helps you start regular investing, and stick with it. Your contributions are automatically deducted from your salary before you receive your check. Since the money is deducted from your gross income, you will have a lower taxable income, which means you will pay less in annual taxes. The money you save will accumulate on a tax-deferred basis. This means you pay no federal or state taxes on your contributions or investment earnings until you start withdrawing money from the plan. See similar questions...

If provided under the terms of the plan, upon an extreme economic need such as hardship withdrawals: for the purchase of your primary residence, payment of college tuition or medical expenses not reimbursed by an insurance company, for you, your spouse or dependents, or to avoid eviction from your primary residence. See similar questions...

Yes. Current tax law (EGGTRA tax reform legislation passed in 2001 and effective beginning January 1, 2002), permits an individual under Portability provisions to transfer funds from a 401(k) plan offered by a for-profit corporation to a 403(b) plan such as the plan offered by Northwestern University and vice versa. Individuals wishing to do so should contact their investment companies. See similar questions...

IRA can be rolled over into a qualified retirement plan, assuming the qualified retirement plan has language permitting such rollovers. See similar questions...

No, it is not a new type of plan. Designated Roth contributions are a new type of contribution that can be accepted by new or existing 401(k) or 403(b) plans. This feature is permitted under a Code section added by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), effective for years beginning on or after January 1, 2006. See similar questions...

Yes, we want to help our nurses plan for the future, so we offer the best 401(k) program in the industry. k) Safe Harbor Plan Eligibility: First of the month following 90 days of employment; must be at least 21 years of age. Company Match: 100% of contributions up to the first 3% of compensation plus 50% of contributions up to the next 2% of compensation Contributions: Employee may contribute up to $13,000; Age 50 and over may contribute up to an additional $3,000. See similar questions...

A 401(k) safe harbor plan is a 401(k) plan that automatically satisfies the nondiscrimination rules for elective deferrals and matching contributions. For a 401(k) plan to be considered a safe harbor plan, employers must satisfy certain contribution, vesting, and notice requirements. See similar questions...

the name implies, a 401(k) "look-alike" plan works much like a conventional 401(k) plan. Rather than offering a traditional 401(k) retirement plan, some corporations offer their employees, typically their executives, a "look-alike" plan. Most "look-alike" plans are funded by the employer with a variable universal life insurance policy that insures the life of the employee. See similar questions...

You request a “hardship withdrawal,” which is approved by Putnam Investments in accordance with the rules of the Plan for the amount needed. Please see page 12 of the Summary Plan Description (PDF, 215K) for more information about hardship withdrawals. See similar questions...

an American Mobile Healthcare traveler, you can start saving for retirement as soon as you begin your first assignment. You can contribute 50 percent of your salary or $13,000 annually, whichever is less. If you are age 50 or older, you may contribute $16,000 a year. After 1,000 hours of continuous service, American Mobile Healthcare will match 50 cents for each dollar you defer up to 6 percent. See similar questions...

Slavic Online is offering a free service to send your 401(k) balance to you by e-mail once per week. We also provide links to online information about your 401(k) plan to help you better manage your investments. To subscribe click here. See similar questions...

The plan is the best way to save for your retirement because of the tax deferral on your contributions, the compound interest growth (also on a tax-free basis) and the matching contribution you may receive from your employer. See similar questions...