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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (92401)	9/23/2001 10:42:30 AM
From: Knighty Tin	Respond to of 132070

Ike, alas, the gag rule would probably cover this.

To: re3 who wrote (92401)	9/23/2001 11:58:51 AM
From: Don Lloyd	Respond to of 132070

ike - ...can you quickly explain how the 401k system works in the u.s. and how it is different than an ira... Compared to a traditional tax-deferred IRA - 1. Deducted from pay before tax instead of being a deduction on the taxpayer's return. This is a wash. 2. Program is the result of a contract between the employer and the custodian/provider instead of being an arrangement between the individual and the custodian. This means limits on investment choices and less flexibility, with a wide variation from one employer to another. 3. Employer may match a portion of employee contributions. 4. 401k may usually be borrowed against. 5. Annual contribution limit has been $10k vs $2k, although both limits are being raised. 6. At employment termination, the 401k can be rolled over into a traditional IRA without cost, so they are effectively identical after employment ends. Regards, Don