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Beth A. Botti, CFP®, ChFC, CLU, CDFA™
Financial Consultant
California Insurance License #0G24537
612 Wheelers Farms Road, Milford, CT 06460
Phone: 203-877-6556 Ext. 169
Fax: 203-301-0736
Email: beth.botti@equitable.com
September/October 2019
Know Your 401(k) Words
If you’re like many workers, you contribute to a company-sponsored 401(k) plan, but you might not understand all the financial jargon that comes with one. If you’re among the justifiably confused, some of these definitions may clear up any uncertainty.
Beneficiary
As with a life insurance policy, you’ll need to name one or more beneficiaries of your 401(k) plan so its assets can pass as intended in the event of your death.Contribution Limit
In 2019, you may contribute up to $19,000 plus another $6,000 if you’re at least age 50. Your plan, however, may have different limits, so ask about them.Distributions
The IRS refers to withdrawals as distributions. Taking distributions before age 59 1/2 will cause you to pay a penalty and income tax on the amount, with a few exceptions.Match
That’s how much of your contributions an employer matches. Make it a point to contribute enough to take full advantage of the match.Required Minimum Distributions
This mouthful is better known as RMDs. They are not space movie robots, but required withdrawals you generally must begin taking at age 70 1/2. Failure to do so may result in you having to pay a penalty.Vested Interest
Your contributions belong to you, but you may not immediately vest fully in your employer’s match, which can take up to five years.Jump Start
Now that you know a few more 401(k) plan words, take the next step and begin contributing more. The retired you will appreciate your early efforts.GE-2441510a (04/19)(Exp. 04/21)
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Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.
GE-6572038.1 (4/24)(Exp. 4/26)
CFP®, and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
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