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 do that the vaporific financial food market, specifically the 401(k) aim, is having on industries and their employees. Introduction A 401(k) throw permits employees to choose to take a function of their struggle on a pretax basis. The jut out must be constituent of a qualified profit-sharing plan, a stock bonus plan, a pre-ERISA money purchase gift plan, or a hobnailed 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 occupy 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 t he 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 efficacy even contribute.

The money, to be put away in coarse funds or savings accounts, was the employees, for better or worse. (Crenshaw, 2003) only if three years into the worst bear market since the slap-up Depression, many workers are finding that the risks of inve sting have not died - they were only sleepin! g. (Crenshaw, 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 in condition(p) a lot... If you involve to get a full essay, ordination it on our website: OrderCustomPaper.com

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