A 401(k) is a type of retirement savings account in the United States, which takes its name from subsection 401(k) of the Internal Revenue Code (Title 26 of the United States Code). A contributor can begin to withdraw funds after reaching the age of 59 1/2 years. 401(k)s were first widely adopted as retirement plans for American workers, beginning in the 1980s. The 401(k) emerged as an alternative to the traditional retirement pension, which was paid by employers. Employer contributions with the 401(k) can vary, but in general the 401(k) had the effect of shifting the burden for retirement savings to workers themselves. In 2011, about 60% of American households nearing retirement age have 401(k)-type accounts .
Employers can help their employees save for retirement while reducing taxable income under this provision, and workers can choose to deposit part of their earnings into a 401(k) account and not pay income tax on it until the money is later withdrawn in retirement. Interest earned on money in a 401(k) account is never taxed before funds are withdrawn. Employers may choose to, and often do, match contributions that workers make. The 401(k) account is typically administered by the employer, while in the usual "participant-directed" plan, the employee may select from different kinds of investment options. Employees choose where their savings will be invested, usually, between a selection of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above. Many companies' 401(k) plans also offer the option to purchase the company's stock. The employee can generally re-allocate money among these investment choices at any time. In the less common trustee-directed 401(k) plans, the employer appoints trustees who decide how the plan's assets will be invested.
The Oregon Enrollment and Salary Deferral Agreement is a legal document that outlines the terms and conditions for participating in a retirement savings program in the state of Oregon. This agreement allows employees to defer a portion of their salary and contribute it towards their retirement savings. The primary purpose of the Oregon Enrollment and Salary Deferral Agreement is to provide employees with a convenient and structured way to save money for their retirement. By deferring a portion of their salary, employees can take advantage of potential tax benefits and ensure a secure financial future. There are a few different types of Oregon Enrollment and Salary Deferral Agreements, each designed to cater to specific retirement savings needs. Some notable types include: 1. Oregon Public Employees Retirement System (PEERS): This agreement is available to eligible participants who work for state and local government agencies, school districts, and other public institutions. PEERS allows employees to contribute a percentage of their salary towards their retirement account, which is managed by the state. 2. Oregon Savings Growth Plan (SGP): This agreement is offered to employees who work for nonprofit organizations, such as charities and universities. SGP allows participants to save for retirement by deferring a certain amount of their paycheck into a retirement account, which is invested in a selection of professionally managed investment options. 3. Oregon Individual Retirement Account (IRA): This agreement is open to any Oregon resident, regardless of employment status. The Oregon IRA allows individuals to set up their own retirement account and contribute a portion of their annual income towards it. Contributions to this type of account may be tax-deductible, subject to certain income limitations and eligibility criteria. By participating in an Oregon Enrollment and Salary Deferral Agreement, individuals can take control of their retirement savings and work towards achieving their long-term financial goals. It is important for employees to carefully review the terms and conditions of the agreement, seek financial advice if needed, and determine the optimal contribution amount that aligns with their overall financial plan.The Oregon Enrollment and Salary Deferral Agreement is a legal document that outlines the terms and conditions for participating in a retirement savings program in the state of Oregon. This agreement allows employees to defer a portion of their salary and contribute it towards their retirement savings. The primary purpose of the Oregon Enrollment and Salary Deferral Agreement is to provide employees with a convenient and structured way to save money for their retirement. By deferring a portion of their salary, employees can take advantage of potential tax benefits and ensure a secure financial future. There are a few different types of Oregon Enrollment and Salary Deferral Agreements, each designed to cater to specific retirement savings needs. Some notable types include: 1. Oregon Public Employees Retirement System (PEERS): This agreement is available to eligible participants who work for state and local government agencies, school districts, and other public institutions. PEERS allows employees to contribute a percentage of their salary towards their retirement account, which is managed by the state. 2. Oregon Savings Growth Plan (SGP): This agreement is offered to employees who work for nonprofit organizations, such as charities and universities. SGP allows participants to save for retirement by deferring a certain amount of their paycheck into a retirement account, which is invested in a selection of professionally managed investment options. 3. Oregon Individual Retirement Account (IRA): This agreement is open to any Oregon resident, regardless of employment status. The Oregon IRA allows individuals to set up their own retirement account and contribute a portion of their annual income towards it. Contributions to this type of account may be tax-deductible, subject to certain income limitations and eligibility criteria. By participating in an Oregon Enrollment and Salary Deferral Agreement, individuals can take control of their retirement savings and work towards achieving their long-term financial goals. It is important for employees to carefully review the terms and conditions of the agreement, seek financial advice if needed, and determine the optimal contribution amount that aligns with their overall financial plan.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
