The fun part about a 401(k) plan is watching it grow over time. But that can easily turn into a frustrating exercise if you don’t understand your retirement plan statement.
Although your employer is required to provide you with a plan statement, there is no standardized form—most, in fact, are quite different. However, Figure 1 (see bottom of page) gives you an idea of some of the information that may be included.
The statement in Figure 1 is divided into several sections: activity this period, current contributions allocation, and a summary of contributions.
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