The 401k “Look-a-Like”
The 401k plan has been the hallmark for corporations looking to create benefits packages for employees since the 1970’s. While there are many benefits to these plans there are some limitations as well. Most people do not consider tax liabilities in the future of these deferred plans and they end up with large tax bills after 70 1/2.
In order to learn about what a 401k “Look-a-Like” is…we have to look at some of the benefits and the limitations of the 401k