Www.401k.com – Fidelity Investments Retirement Plans

Www.401k.com – Fidelity Investments Retirement Plans

www.401k.com is a website that is set up by Fidelity Investments to provide information about retirement plans for the general public.

Fidelity Investments is one of the world’s largest mutual fund companies, and their low cost index funds is a mainstay of retirement plans nationwide. If you are thinking about joining your very first 401(k) plan, or thinking about converting 401(k) to a Roth IRA, or considering whether to consolidate 01(k) plans from your previous employers, http://www.401k.com contains a wealth of information for you.

The website www.401k.com guides you through the reasons to join your company’s 401(k), including the tax savings that results from contributing some of your income on a pre-tax basis to your 401(k), the discipline to save that is imposed by automatic deductions from your paycheck to fund your 401(k), and the extra cash that you’ll save if your company matches your contributions to your 401(k). While there are penalties for accessing the cash in your 401(k) before your retirement, you retain the cash in your 401(k) if you ever change jobs, and you can roll over the balance in your 401(k) retirement plan into the 401(k) retirement plan offered by your new employer if you wish.Alternatively, you convert your traditional 401(k) plan into a Roth IRA plan.

The difference between a Roth IRA and a traditional 401(k) is that while a traditional 401(k) is paid with before-tax dollars and only taxed upon distribution, a Roth IRA is funded with after-tax dollars, and taxes on earnings in the Roth IRA account are deferred until you withdraw them.

Generally speaking, you have more control over your funds in the Roth IRA plan compared to a traditional 401(k). In a traditional 401(k), you cannot withdraw the funds before retirement without penalty, and there is a mandatory time table for distributions. In a Roth IRA plan, you can withdraw the principal you have contributed without penalty, and there is no set timetable for distribution.

To learn more about 401(k) and Roth IRA plans, visit www.401k.com, the Fidelity Investments retirement plans web site.