Why should I contribute to my company retirement plan?
If you are in the 20% tax bracket, Uncle Sam takes 20 cents of every dollar you make. The contribution that you make to your plan is tax deferred (ie: you do not pay taxes on the money until you withdraw it). Therefore your non-taxed monies are growing for you.
Is the Money Market Fund "guaranteed" not to lose money?
No. The Money Market account is considered a Safe Harbor Account and has the least volatility, but there is no such thing as a riskless account.
Can I choose my own investments in an IRA?
Yes. You can establish an IRA with Money Markets, Mutual Funds or Stocks of your choice. Not all banks or credit unions offer the choices, so shop around.
Can I move my money from my retirement plan to an IRA while I am still employed?
No. The government allowed the establishment of retirement plans with some stipulations. Your retirement plan is for your retirement. There are 4 ways to get the money from your plan. 1) retire 2) leave the company 3) become disabled or 4) death (in case you haven't guessed you won't actually be getting the money for #4, your beneficiaries will!)
If I would like to see some other fund choices in my plan, who should I talk to?
The company trustees of the plan. If you have some ideas of fund selections, let them know what those are and why. Be aware that every time a fund is added or changed, the plan incurs additional costs. If you don't understand why a fund didn't get added or if you wonder why a fund was eliminated, don't hesitate to ask.
