Husband’s 401k

When I was first hired by my current employer they were not offering a 401k program. Though the position met all of our other requirements this was a big piece that was missing. However, I was told coming in that I could explore possible options for the company which they would take into consideration. And true to their word, after a rather lengthy evaluation of several providers the company went with my recommendation (Vanguard) with a plan that began this year.

The plan is what is known as a Safe Harbor 401k which allows all participants to make the maximum-allowable contributions each year regardless of income. All of the plan expenses are paid by the company and the employees are only responsible for the costs of the individual funds. There is a 4% match – dollar for dollar on the first 3% and $0.50 on the dollar for up to 5%.

Since I have been with my current employer for a year I now qualify to contribute to the plan. I have elected to defer the maximum amount for 2008 and will continue to do so in the coming years. The money will initially be invested into Vanguard Target Retirement 2050 Fund (VFIFX) for now, but this will change shortly as we begin to realign our portfolio after adding the taxable investment account last month.