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1.
How do you invest in a 401(k) plan?
Your employer automatically deducts your contribution from your pay. Investing in a 401(k) plan is automatic; your employer deducts your contribution from your pay. And although your employer may match all or part of your contribution, you need to contribute some of your salary to your 401(k) to receive an employer match.
2.
Your 401(k) plan's retirement planning tools will analyze _______.
All of the above. These are typical factors that a program will look at.
3.
What are the tax advantages of a 401(k) plan?
Both of the above. You defer taxes on any investment gains and distributions AND save on taxes now, because you're investing in your plan with pre-tax dollars.
4.
Which of the following would your 401(k)'s plan document not tell you?
How much your 401(k) will earn. The plan document has no way to know this.
5.
Your 401(k) plan has a legal limit to how much you can contribute. However, some plans have a lower ceiling, which is based on _______.
A percentage of your salary. This is typically a low percentage that can still add up nicely.
