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There're many benefits of 401k retirement plans but the most beautiful benefit is when your employer matches your contributions to the plans to a certain point. The matching boils down to your employer's discretion and financial capability. The match could be 25 cents, 50 cents or more to the dollar or dollar for dollar.

This means that each time you contribute, your employer adds money, for free! Free money for your retirement! Greater chance for you to retire in style and in comfort......

So matching fund from employer is the STAR benefit of 401k retirement plans.

What other benefits can you get from 401k retirement plans, besides this?

Let's see:

• All your contributions are on a pre-tax basis. By deferring money to your 401k before taxes, you not only avoid paying taxes now, but you reduce the amount of taxable income that the government can take
• When you withdraw from your 401k, you'll pay federal and state income taxes. But if you relocate to another state when you retire, like Florida or another state which doesn't have a state income tax, you save money
• In case of emergency, you can withdraw money from your 401k account. However, if you want to withdraw from your account penalty free, you should wait until age 59. If you withdraw before age 59, you'll have to pay a 10% penalty
• In some cases, you may be able to borrow money from the account, penalty free. However, if you leave your job or are laid off, before paying back the loan, you may be required to pay the full amount at termination. It's always good for you to check first before borrowing money from your 401k account
• If you turn 50 years old or older during the calendar year (January 1-December 31) and you're already making the maximum contribution, you can nonetheless make an additional "catch-up" contribution, to boost your savings
• Any gains from dividends or investment earnings growth are tax-deferred. This can mean many years of tax deferred growth. Tax deferral can have a powerful impact over time to increase your funds for retirement
• Flexibility - you can decide how much you would like to save and you can increase, decrease or even stop your contributions. If you change job, you can rollover your existing 401k savings into an IRA (Individual Retirement Account) or you can choose to transfer it to your new employer's 401k

No doubt 401k retirement plans are attractive savings plan for retirement. But have you thought of what you will be retiring to? That's important too. Cecelia Yap has been researching on the subject for some time. She has found what she'll be retiring to and you too can do what she does, here: http://www.perfect-body-toning.com/my-passion.html

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