the HR Orientation

You have just attended the HR Orientation at your new job, and you learned that your employer offers a defined contribution retirement savings plan: a 401k. Your employer will match 100% of your contributions to the plan up to a maximum of 5% of your salary.

You are offered two options:

  • a traditional 401k, which allows you to contribute pre-tax money and defer paying taxes until you begin taking withdrawals in retirement.
  • a Roth 401k, which allows you to contribute money that has already been taxed and take tax-free withdrawals in retirement.

You are also offered the option of choosing to increase your initial contribution amount by 1% annually, to a maximum of 15% of your salary.

After completing the chapter readings and viewing the “Saving for Tomorrow, Tomorrow” video linked in the Module resources, respond to the following questions:

  • Will you choose the traditional 401k or the Roth 401k?  What factors did you consider in making your decision?
  • What percentage of your salary will you contribute? Will you choose the automatic 1% annual increases to your contribution? Provide specific rationale for your decisions.

Ready To Get Started

The Exertio is a Premium WordPress Theme, you can create your own market place website using this theme. It allows you to get a commission for hiring a freelancer or for each service sold.