DIYbanter - View Single Post

Ralph Mowery

In article ,
says...
We don't have a 401k here so I am not sure what that is. A quick check
of Dr Google tells me it is much like the super schemes we now have here
with either a lump sum payout or a retirement income stream.

In simple terms. The company you work for lets you start up a
retirement savings. They will often match what you put in , or a
percentage of it up to 3 to 5 % of your pay. Depending on the company
you may have several choices of where that money is sent. Such as
mutual funds, or a money market . A few companies made you put that
money in their stock. A very bad idea for some companies.

YOu can not take that money out before you reach 59 1/2 years old
without some very heavy tax on that money. There are some exceptions.

Usually after you retire you convert it directly to an IRA.