Answer: Since your 401k plan is one of your most important retirement savings vehicles, you want it to be as good as possible. Here are the features that we think make a really good 401k plan. How does your plan compare?
Immediate eligibility.
Valued daily and statements provided at least quarterly.
Generous employer match provide in cash and not employer stock.
Maximum contribution can be made each year, i.e., the plan places no restrictions on the amount.
Low expenses or the plan sponsor pays most fees.
Internet access for checking performance, balance, making changes, etc.
Low cost name brand no-load mutual funds or collective investment funds.
At least 12 investment options available, including both passive (index) and active investment (actively managed) funds.
Loans and hardship withdrawals available.
Newsletters, fund prospectus, investment performance information and some type of education seminar offered.
Individual investment advice service provided.
This is for educational purposes only. The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.
