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Should I Enroll Into My Employer's 401 K Plan?
Yes you should definitely consider enrolling into your employer's 401K plan as soon as you become eligible. Most employers will match a certain percentage of the funds you contribute to the plan. So, it's a very good idea to sign up for this plan. You don't want to give away free money that your employer may be willing to contribute towards your 401K plan. What are some of the other advantages to having a 401k account? By contributing to this plan, you are able to defer part of your salary free of most taxes. In addition, you are able to save money for your retirement. Can I withdraw money from my 401K account? Yes, you can withdraw money if you have a hardship, need a loan, or when you reach age 59 1/2 upon retirement.
What is the qualification for receiving a hardship exemption? If you need to purchase a home, some tuition expenses, medical expenses and if you are getting ready to be evicted from your home. Can I get a loan from my plan? Yes, in most cases you can. Usually there is a maximum amount you can borrow from the plan which would be up to 50% of your balance available. Your loan must be repaid over a five year period and a payment plan is established. Review your employer's guidelines concerning loans from your 401K plan.
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