Do I have to contribute to my plan?
- What are defined contribution plans?
- How do defined contribution plans work?
- How does the money get invested?
- What tax benefits do 401(k)s offer?
- Do I have to contribute to my plan?
- Why is a 401(k) such a good deal?
- When do I pay tax on a 401(k)?
- How is a Roth 401(k) different?
- What is a matching contribution?
- How does vesting work exactly?
- How much should I contribute to my plan?
- What if I can't invest the maximum right now?
- What if I need the money before I retire?
- What if I leave my job?
No, but you'd probably be foolish not to, because it's a great deal - though not nearly as great a deal as a traditional pension, in which your employer kicks in all the dough, bears all the investment risk and handles the administration of your account. Given that few employers offer traditional pensions anymore - they're much more costly than defined contribution plans - a 401(k) is usually the best game in town.
