401(k) plans differ greatly depending on the employer who sets the rules. The only way to get the most out of the plan is to get to know it and make educated choices.

Things you should know:

- What is the maximum percentage of your salary you are able to contribute (see also 401(k)contribution limits set by IRS)?

- Is your employer matching the contributions? If yes, what is your minimum contribution, before your employer's contribution starts, and what is the maximum?

- What are the number of years you have to be with the company (so called vesting) to be eligible for the employer's contributions to your 401(k)?

- How often can you switch among available investment options?

- Are earnings posted to your account on a weekly, monthly or quarterly basis? When do you get your account statements? Note, it is always more beneficial if earnings are added to your balance more often.

- What methods can you use to access the account? By phone, on the internet or only in writing?

- Did you spread your money among different investments to reduce the risk?

- Did you learn enough about the investments you are using?

Do you know that 401(k) plans are not insured by the federal government, and its investments are at risk? However, different investments carry different degrees of risk. It is always best to diversify your investments by investing in different types of assets. To find out more about 401(k) investment options, ask your plan administrator for information. Financial magazines, prospectus and brochures can be a good source for learning about particular investment options.

For more tips regarding 401(k), IRA plans and other retirement investing topics visit: http://www.HowMuchAnswers.com
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A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to 401k Plans... What Is A 401(K) Plan? The 401(k) retirement plan is funded by employee contribution and a matching employer contribution. The major feature of the plan is that the contributions are taken from pre-taxed salary. The fund accumulates tax-free until it is withdrawn. Most businesses and tax-exempt organizations can create these retirement plans. The 401(k) takes its name from the IRC (Internal Revenue Code) of 1978. The operation of the 401(k) is administered by the EBSA (Employee Benefits Security Administration) of the Department of Labor. The 401(k) plan has a lot of advantages. First and foremost is that the employee can contribute pre-tax money that reduces the tax paid in each paycheck. Also, the company contribution and any growth in the fund is free of tax until withdrawn. The compounding of the fund during a 20 to 30 year period is quite amazing. The employee has a lot of control in the direction of the future contributions. When the company matches your contributions,...