What are some of the general advantages and disadvantages of the 401k

[Guest MR. "V"]

I am student completing a major in Administration of Human Resources, and what I would like to know are some general advantages and disavantages of the 401k retirement plan.

[jlf]

Dear Mr. "V"...

From whose perspective, the plan sponsor or the plan participant?

[Erik Read]

Good point - the advantages are different from a corporate view, then from a partnership/sole-proprietor view, and even different if you're trying to show the "human" side to present to a potential employee. Each plan has its intricacies and some may be more favorable than others.

For instance, I'd much rather promote a 401(k) Plan where the employer matches contributions on 2/1 ratio than one that has not historically ever made a matching or discretionary contribution to the plan.

Give us some parameters, and we'll try to help you with your research - i.e. - large corporation (1000+ employees) vs. small professional practice with 20 employees.

Good luck.

[jlf]

Mr. V.........You may want to pose your question on the 401(k)Message Board. This is the 403(B) Message Board.

Best,

Joel L. Frank