does the 401 k retirement plan tell un how much u get back or just how much u have to put in?
- 1 decade agoFavorite Answer
Just how much you put in and the increase or decrease in value. You won't know how much you are going to get back till you start withdrawing.
- Anonymous1 decade ago
a 401K is a tax free account that many employers have set up for a person to contribute to. Many employers will match up to a certain percentage.(typically 2-3%). So if you put in 3% of what you make, they match that. How much you will end up with over time depends entirely on the investment. There are typically stock or bond mutual funds, sometimes the companies own stock if it is a public company. If you need help talk to your personnel people. They may be able to get investment information for you.
Put in as much money as you can. Leave it there until you retire, and you will be good to go.
- CMass StanLv 61 decade ago
A 401k plan (tax deferred, not tax free) does not guarantee how much you'll get back when it's time, nor do they tell you how much to put in.
What the administrators do tell you is the maximum you could contribute pre tax per year, and the percentage (both in contribution and match) your employer may be willing to match of your contribution.
How much you get back at retirement is dependent on, over time, how much you contribute, where you invest that contribution, and the performance of your investments. You can track this information through account statements, prospectuses, and online access.