This paper analyzes an article about 401k.

Purpose The purpose of this paper is to analyze the article, More Employees On Their own by Albert B. Crenshaw. This paper will discuss the effectuate that the vaporific financial foodstuff, specifically the 401(k) aim, is having on industries and their employees. Introduction A 401(k) contrive permits employees to choose to take a bundle of their wages on a pretax basis. The externalise must be cancel of a qualified profit-sharing plan, a stock bonus plan, a pre-ERISA money purchase gift plan, or a untaught cooperative plan. The ability of the employer to comp be contributions has generated interest in the plan at all employee levels. This is pregnant because 401(k) plans include strict tests that withdraw lower nonrecreational employees to protract compensation under the plan, in proportion to highly paid employees. (401k.com, 2003) The major benefit to employees is that they nuclear number 18 not taxed currently on the portion of compensation that is placed i n the plan. An employee has the option of choosing among cash or future benefits on a year-to-year basis. This protects an employee when go about with unlooked-for immediate financial needs. (401k.com, 2003) Article Analysis In the beginning, the 401(k) plan looked appealing to nearly employees. Workers could put money aside and their employer susceptibility even contribute.

The money, to be put away in interchangeable funds or savings accounts, was the employees, for better or worse. (Crenshaw, 2003) still three years into the worst bear market since the groovy Depression, many workers are finding that t he risks of investing have not died - they w! ere only sleeping. (Crenshaw, 2003) Now, in the wake of liability risks, stock market volatility, and potential legislation, unite States employers are reassessing their 401(k) plan priorities for 2003. Additionally, those who participate in the plan are being hit hard. Employees have knowledgeable a lot... If you involve to get a full essay, disposition it on our website: OrderCustomPaper.com

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