Implementation of 401K Plan
You probably get confuse and need explanation about the 401k. This is a plan that implemented by company to give employees to have savings for retirement. This plan is benefit both for the company that offer the plan and also for the employees. This is a win-win solution in the business today. In fact that 401k is already used since generations and become the most utilized method for American people.
But there is one type of retirement plan that will be implemented by a company that cannot pas the test of anti discrimination. This is called the safe harbor 401k. There are several reasons that a company would take this decision. Those reasons are like the problem of withdrawal, the contribution must be 100% vested immediately and the contribution is either 3% from compensation or from matching contribution. There are still other reasons, one of them is the amount of contribution that cannot be maximized by the company.
Commonly, 401k plan is implemented by the company because it is more popular and give stable income for retirement. It will give the employees the financial independence even after not working since long time ago. This is the part of income that you have saved each month in the 401k savings account while you worked in a company before. This is a good solution for you.