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Understanding 401(k) plans and writing the kind of content on 401(k) plans that Michael Calabrese has come up with is commendable. The author recommends a universal 401(k) plan that will encourage Americans to save more and to ensure that working class Americans get more saving opportunities. A universal plan will be put in place automatically for American tax payers and work in conjunction with the existing private pension system.

The author considers this important because at present the projections are that at least 40% of the baby boomers will have to depend upon government social security poverty level benefits upon reaching the age of seventy. The new 401(k) plans will be designed to meet the needs of a workforce that shifts companies often and therefore benefit portability becomes important. A good 401(k) plan should also offer an incentive to low-wage earners to save for tomorrow instead of preferring a higher wage today. Employees of companies such as McDonald’s and WalMart are a case in point. Employers should also receive adequate tax deductions for contributing to the employees benefit.

Find out about 401(k) hidden fees that you should be aware of.

  401k.pdf (136.9 KiB, 44 hits)

Tags: 401k retirement plan

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