"jmcquown" > wrote in message
.. .
> Michel Boucher wrote:
>> "itsjoannotjoann" > wrote in
>> oups.com:

>>> 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.

Can you decide how much you put in to your 401K or is it a set percentage of
your income? Like Michel, I'm in Canada. The company DH works for allows
employees to chose from 3 levels of contributions. IIRC, 1, 2 or 3% of
employees' wages can be invested in their pension plan, with the company
matching the amounts. The same options (return of contributions or
roll-over into an RRSP) are available if employee leaves/is laid off before
reaching pension eligibility.

Gabby