401k Plans - 401(k) Plans There are many economic issues...

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401(k) Plans 4 There are many economic issues facing the nation today. While some are extremely important in determining how the economy is balanced, others are not. Although this is true, that does not necessarily make these lesser important issues obsolete. Take, for example, the recent issue of corporate leaders matching contributors to the 401(k) plan with company stock, instead of with cash. Though this is a relatively National issue, it still greatly affects a large number of people in foreign areas as well as you and me. Because of this effect on such a large number of people, it is necessary that this issue be discussed, as will happen within the next few paragraphs. h In the way that a 401(k) stock matching plan is set up; timing is everything. In a basic 401(k) plan employees put forth a set amount of dollars (usually pre- determined personally by the employee) before taxes are withheld This portion of the employee's paycheck is put toward his or her retirement. What some companies prefer to do in order to make the 401(k) plan more attractive for employees, is to match each employee's investment in the plan by a certain percent. Here is where the problem comes in. Though some companies match contributors either with cash or
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This note was uploaded on 10/06/2010 for the course MKT MKT501 taught by Professor Lin during the Spring '10 term at University of Management and Technology.

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401k Plans - 401(k) Plans There are many economic issues...

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