"Many 401(k) plans have a Roth savings feature that allows your money to grow tax-free and gives you tax-free withdrawals in retirement."
"It's not common at all for half of a 401(k) to land in an annuity automatically upon the saver's passing."
Understanding your employer's retirement plan is vital for retirement savings success. Different 401(k) plans encompass varying rules, including Roth options and the ability to make after-tax contributions. Also, some plans permit loans, while others do not. A Reddit user expressed concern over their plan's unusual stipulation of mandating that 50% of their account be invested in an annuity for their spouse upon their death. Such provisions are atypical, necessitating a careful review of one's plan details and potentially consulting a financial advisor for clarity and optimal management of retirement assets.
Read at 24/7 Wall St.
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