Understanding your employer's retirement plan is vital for retirement savings success. Different 401(k) plans encompass varying rules, including Roth options and the ability to make after-tax contributions. Also, some plans permit loans, while others do not. A Reddit user expressed concern over their plan's unusual stipulation of mandating that 50% of their account be invested in an annuity for their spouse upon their death. Such provisions are atypical, necessitating a careful review of one's plan details and potentially consulting a financial advisor for clarity and optimal management of retirement assets.
Many 401(k) plans have a Roth savings feature that allows your money to grow tax-free and gives you tax-free withdrawals in retirement.
It's not common at all for half of a 401(k) to land in an annuity automatically upon the saver's passing.
Collection
[
|
...
]