The recipient of a business degree from Wagner College in Staten Island, New York, Raymond Menna is a Certified Financial Planner who has worked in financial management for more than three decades. Raymond Menna heads his own firm, Menna Wealth Planning Group, which provides clients with services ranging from tax and legacy planning to college and retirement planning, using vehicles such as 401(k) plans.
A common type of retirement account, a 401(k) plan is provided to employees who intend to save money for retirement. In a 401(k) retirement plan, an employer holds back a part of an employee's salary and adds it into a fund that will pay out to the employee when they retire. Sometimes employers, to support their employees, contribute their own money into employees' 401(k) accounts.
Contributed funds are tax-deferred. Since the point of the plan is to encourage employees to save for retirement, heavy tax penalties are imposed for withdrawals before the age of 59-1/2.
A common type of retirement account, a 401(k) plan is provided to employees who intend to save money for retirement. In a 401(k) retirement plan, an employer holds back a part of an employee's salary and adds it into a fund that will pay out to the employee when they retire. Sometimes employers, to support their employees, contribute their own money into employees' 401(k) accounts.
Contributed funds are tax-deferred. Since the point of the plan is to encourage employees to save for retirement, heavy tax penalties are imposed for withdrawals before the age of 59-1/2.
