Things You Should Know About Your 401(k) Plan

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Things You Need to Know About Your 401(k) Plan
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• Everyone should know the basics about how their
  401(k) works. Here are the most important pieces
  of information you should know about your 401(k)
  Plan.

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• How Much You Can Contribute?
• Workers can contribute up to 17,500 to a 401(k)
  in 2014, an amount that is adjusted annually for
  inflation. Employees age 50 and older can deposit
  an additional of 5,500.

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• How Much You Can Save in Taxes?
• Traditional 401(k) accounts allow you to defer
  paying income tax on the funds you contribute
  until you withdraw the money. To find out how
  much you will save, multiply your contribution
  amount by your tax rate.

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• How to Get a 401(k) Match?
• Getting a 401(k) plan is the quickest way to
  build up a large 401(k) balance. Many employers
  will match part or the entire amount you
  contribute to a 401(k) plan. Formulas can vary
  depending on the employer but the most common
  match is 50 cents for each dollar saved up to 6
  percent of pay.

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• How to Avoid the Early Withdrawal Penalty?
• If you leave a job with a 401(k) before age 55 or
  roll the money over to an individual retirement
  account, youll have to wait until age 59 ½ to
  avoid penalty.

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• What To Do When You Change Jobs?
• When you switch jobs, you have three options that
  will allow you to avoid paying income tax and the
  early withdrawal penalty. Leave the money in your
  old 401(k) plan, roll it over to an IRA or shift
  the balance to your new employers 401(k) plan.

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• Heartland Consulting Group Get a Quote Today!
• Heartland Consulting Group works with small and
  medium-sized businesses ranging from
  sole-proprietorships to companies with hundreds
  of employees.
• For more details,
• Call 1 913-649-3171
• Visit www.heartcg.com/401k-plan-administrator

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