Retirement Plans
Retirement Plans
Please find attached the grading guide
A new employee joins your company at age 24 making $40,000 per year. Currently, banks are paying 5% interest on saving accounts, and the rate of return on the company stock is 4% per year. During benefits enrollment, the employee stated that she would like to retire at age 60 with 3 million dollars in her retirement account.
Compare the following retirement options for this particular employee in 1,050 to 1,400 words:
- 403B
- 401K
- Pension
- Annuities
- IRA
- Estate planning
Determine which retirement option(s) you would choose if you were this employee.
Assess the factors that this employee should consider when selecting a retirement plan.
Answer Preview…………..
Employees always wish that when they retire from a particular job, the retirement dues can help them survive outside employment. There are various employment plans that individuals can select to cater for there life after employment. The following are some of the retirement benefit plans. Firstly, the 401k plan involves contributions from the employer and employee. However, the employees can continue benefiting even when the employer does not contribute to the retirement plan. In this plan, the employee makes pre-tax contributions voluntarily from an election exercise. Hence, the payrolls are deducted to a maximum annual limit. Furthermore, the employees can also decide on encouraging greater participation and adding benefits to the plan. For instance, the employees can much the up to 100% for the first 5% provided by the employee. In addition to that, the profit sharing contributions can be added………………….
APA 1219 words