Your 401(k) Decoded - Guest Author: Timothy Baker, CFP® Founder and CEO, WealthShape LLC

The concept of 401(k) retirement funding is simple enough but very few truly understand how their plan actually works and why they should care. New light has been shed on these employer sponsored retirement plans with the recent passing of the department of labors (DOL) fiduciary rule. When the rule goes into full affect over the next year or so, all financial advice provided to retirement plans will require “fiduciary” best interests practices. It’s clear; the DOL’s intention was to increase transparency in an environment where so much is unclear. For many investors’ 401(k)’s represent the primary retirement funding vehicle. This column will attempt to decode their complex components in plain English.

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