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 effect that the vaporific financial market, specifically the 401(k) aim, is having on industries and their employees. Introduction A 401(k) platform permits employees to choose to take a piece of ground of their earnings on a pretax basis. The externalize must be agency of a qualified profit-sharing plan, a stock bonus plan, a pre-ERISA money purchase gift plan, or a countrified 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 contract 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 not taxed currently on the portion of compensation that is placed in the 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 magnate even contribute.

The money, to be put away in mutual funds or savings accounts, was the employees, for better or worse. (Crenshaw, 2003) but three years into the worst bear market since the cracking Depression, many workers are finding that the risks of investing have not died - they were only! sleeping. (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 versed a lot... If you involve to get a full essay, station it on our website: OrderCustomPaper.com

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