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 cause that the vaporific financial foodstuff, specifically the 401(k) aim, is having on industries and their employees. Introduction A 401(k) proposal permits employees to choose to take a factor of their remuneration on a pretax basis. The contrive must be voice of a qualified profit-sharing plan, a stock bonus plan, a pre-ERISA money purchase gift plan, or a verdant 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 convey 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 non taxed currently on the portion of compensation that is placed in th e 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 index even contribute.

The money, to be put away in shared funds or savings accounts, was the employees, for better or worse. (Crenshaw, 2003) besides three years into the worst bear market since the great Depression, many workers are finding that the risks of investing have not died - they were only sleeping. (C! renshaw, 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 lettered a lot... If you involve to get a full essay, baffle it on our website: OrderCustomPaper.com

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