Chapter 1 - 401(k) Basics

Question 1

401(k) General things to know

Answer 1

Participants are often given the right to direct the investment of 401(k) deferrals but it is not a condition of qualification.

401(k) elective deferrals may not be distributed based on the passage of a fixed number of years of plan participation.

Question 2

Catch-up Contributions

Answer 2

Are where you can start making catch-up is 50+

If there is a plan limit, anything above that is considered a catch-up contribution

Anything above the 402(g) limit is catch-up