1. RYAN PAUL 401(k) Plans: What Employees Need to Know By Ryan Paul

2. RYAN PAUL Presentation Outline What is a 401(k) plan? How does a 401(k) plan work? How much can I contribute to my 401(k) plan at work? When do I have to start taking money from my 401(k) account? Is there a penalty for early withdrawal?

3. RYAN PAUL What is a 401(k) Plan? Retirement savings plan funded primarily by employee contributions Employers often match contributions Income tax deferred until withdrawal Named after a section of the U.S. Internal Revenue Code

4. RYAN PAUL How Does a 401(k) Plan Work? Must be sponsored by an employer Specified amount is deducted from your paycheck each pay period before taxes You must decide how these funds are invested

5. RYAN PAUL How Does a 401(k) Plan Work? Employee Employer (if applicable) 401(k) Account Retired Employee (years later)

6. RYAN PAUL 401(k) Contributions at Work You can decide how much to contribute each pay period Internal Revenue Service annually sets maximum investment amount per year

7. RYAN PAUL Beginning Your Withdrawals Limited, penalty-free access to savings before age 59 1/2 Exact withdrawal date depends on plan Ranges from 55 to 59 ½ to 70 ½ depending on the circumstances

8. RYAN PAUL Early Withdrawal IRS allows early withdrawals in some situations Financial Hardship –10% penalty –Subject to income tax Section 72(t) –No withdrawal penalty –Subject to income tax

9. RYAN PAUL Works Cited Search Engine: Web sites: http://invest-faq.com/articles/ret-plan-401k.html http://en.wikipedia.org/wiki/401%28k%29 http://wps.fidelity.com/401k/about/basics.htm http://www.401khelpcenter.com/mpower/feature_12 1902.html