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Any questions? Call 1-888-BOA-401K for assistance.

How it Works

1. Making Contributions Employees contribute a portion of their salary on a pre-tax basis. Employers can match all or a portion of employee contributions to provide an ever greater benefit and increase participation in the plan. more on contributions 2. Tax-Deferred Growth Any plan growth is tax deferred until the employee begins taking funds from the account. The employee decides how much money to invest as well as how the money is allocated among the many investment choices within the plan. 3. Distributions Distributions are usually made to the employees at retirement or when they cease working for the employer. At that time, taxes are withdrawn. If taken at retirement, the employee may be in a lower tax bracket and therefore may receive favorable tax treatment. An employee's account balance can be taken as a lump sum, a rollover into an Individual Retirement Account (IRA) or taken in the form of an annuity that will provide for a series of payments throughout the employee's lifetime. Distributions from a qualified plan prior to age 59 ½ may subject the participant to a 10% tax penalty in addition to any ordinary income tax as well as the potential loss of principal for certain investment choices under a plan. Withdrawals, loans and/or rollovers may be subject to restrictions or charges.		A 401(k) gives employees the ability to plan their future. The employee controls how much he or she contributes and how the money is invested while in the plan. Tell me how employers can increase the value of the plan.