Michel Boucher wrote:
> "itsjoannotjoann" > wrote in
> oups.com:
>
>>> Darn, and here I thought I had my retirement all sewn up :-(
>>>
>>> :-)
>>>
>> Yes, I thought I was going to be able to supplement my 401k. Guess I
>> better invest more money in it, huh?
>
> Sorry, no idea what a 401K is. Is it anything like an RSP (Retirement
> Savings Plan)? And if it is, why don't they call it that? :-)

A 401(k) is an employer-sponsored matching funds (generally) program to add
to retirement funds on a pre-tax basis. If you leave the employment you can
choose to receive the total cash distribution, less taxes, or roll it over
into an Individual Retirement Account (IRA). It's actually a separate thing
from a Retirement Plan. The U.S. is awash in these varying savings plans.
Mutual funds investments, straight stock, etc. There are different types of
IRA's; some pre-tax, some post-tax. There are also laws regulating when you
can add cash contributions.

As for why they don't call it the same thing, it depends on the U.S. laws
and what they choose to call them. Makes too much sense to call them all
the same thing

Jill