The Elder and Disability Law Firm, APC
Staying on Track for Retirement
Putting away money with retirement in mind is something that you should begin doing as soon as possible. If you are diligent about creating a retirement plan and sticking to it you should be able to accumulate the necessary financial resources over time.
One way to go about it is to contribute into the 401(k) plan that is offered at your place of employment. With a 401(k) retirement account your contributions are made with pretax earnings. So while you are saving for the long-term you are also getting a slightly larger paycheck because your taxable income is reduced by the amount of your contributions.
Another advantage that comes along with 401(k) accounts in many cases is an employer match. A lot of employers will match the contributions that you make into the account up to a certain amount. San Bernardino County retirement planning lawyers will generally recommend that you make contributions into the 401(k) account that are at least equal to the maximum that the employer is willing to match.
You may wonder what would happen to your account if you were to get laid off. You have some choices available to you should this take place. You could cash out the account but you would have to pay a 10% penalty and a 20% tax.
Another possibility would be to simply keep the money in the same 401(k) account.
And the third option, which may be the best choice if you want to stay on track for a comfortable retirement would be to roll the account over into an individual retirement account or the 401(k) account that is offered by your new employer.
401(k) accounts can be a useful part of a comprehensive retirement plan, and if you would like to learn more about them simply take a moment to arrange for a consultation with a good San Bernardino retirement planning attorney.