match the following 401k terms with their correct descriptions: when your employer contributes to your 401k…

match the following 401k terms with their correct descriptions: when your employer contributes to your 401k choose how long you have to stay with an employer to keep their contributions to your 401k choose vesting matching withdrawal/distribution the process of transferring your 401k to an ira rollover the act of taking money out of your 401k choose

match the following 401k terms with their correct descriptions: when your employer contributes to your 401k choose how long you have to stay with an employer to keep their contributions to your 401k choose vesting matching withdrawal/distribution the process of transferring your 401k to an ira rollover the act of taking money out of your 401k choose

Answer

Brief Explanations:

  1. When an employer contributes to your 401k, it's called matching. Employers often match a certain percentage of an employee's contributions.
  2. Vesting is how long you have to stay with an employer to keep their contributions to your 401k. It's a way to encourage long - term employment.
  3. Rollover is the process of transferring your 401k to an IRA. This can be done for various reasons like changing jobs or for more investment options.
  4. Withdrawal/Distribution is the act of taking money out of your 401k. There are rules and potential penalties associated with early withdrawals.

Answer:

  1. Matching
  2. Vesting
  3. Rollover
  4. Withdrawal/Distribution