For more information

To learn more about your company’s 401(k) plan, ask your benefits department for a copy of your Summary Plan Description and enrollment materials. Also, in most cases, the vendor managing the plan for your employer will have a Web site explaining how the plan works, what your investment options are, information on changing your contributions, beneficiary designation procedures, and so on.

This Practical Money Skills for Life Web site has several interactive calculators that can help you estimate your retirement savings needs, including a Retirement Calculator, which helps you calculate how much you’ll need to set aside for retirement, and the Save a Million Calculator, which helps you calculate how much you need to set aside (and for how long) to amass a million dollars or some other savings goal.

To learn more about IRS regulations and requirements for 401(k) plans, go to the IRS’ Web site. In addition, there are numerous other Web sites that explain how 401(k) plans work, such as the Motley Fool, which provides an informative – and occasionally tongue in cheek – overview of 401(k) plans, Fidelity Investment’s site, Vanguard’s site, and many others. And, as always, please consult your tax advisor for help in determining what’s best for your individual situation.