CONTENTS

CHAPTER 1 – DEFINING THE 401(K) PLAN
PARTICIPANT-DIRECTED 401(K) PLANS
TRUSTEE-DIRECTED 401(K) PLANS
HOW 401(K) PLANS DIFFER FROM IRAS
CONTRIBUTION CAPS
EMPLOYER CONTRIBUTIONS
PAYROLL DEDUCTIONS AND SAVINGS RATES
HISTORY OF 401(K) PLANS
REASONS FOR SUPPLEMENTAL RETIREMENT SAVINGS
LEGISLATION AND PROVISIONS CREATING 401(K) STATUS
SIMILAR SAVINGS PLANS
PROBLEMS WITH 401(K) PLANS
TRANSFERRING 401(K) EARNINGS
HIDDEN COSTS
TYPICAL TRANSPARENCY ISSUES
2 WHAT WENT WRONG WITH 401(K) PLANS IN 2008?
THE COLLAPSE OF THE REAL ESTATE MARKET
THE CREDIT CRUNCH
STAGFLATION
UNEMPLOYMENT
3 OPTIONS FOR 401(K) PLANS
THE IMPACT OF A BEAR MARKET ON RETIREMENT SAVINGS ACCOUNTS
CONDITIONS OF EARLY WITHDRAWAL
PENALTIES
TAXES
REINVESTING IN STABLE FUNDS
EXPENSE RATIOS
AGE-RELATED FACTORS TO CONSIDER
YOUNG INVESTORS
OLDER INVESTORS
4 A PLAN FOR STABILIZING YOUR 401(K) RETIREMENT SAVINGS
READING AND UNDERSTANDING THE SUMMARY ANNUAL REPORT
REQUESTING UPDATED MATERIALS
ANALYZING HISTORICAL PERFORMANCE
APPROACHING YOUR EMPLOYER WITH BETTER 401(K) OPTIONS
RECRUITING FELLOW EMPLOYEES TO HELP
COMMON 401(K) MANAGEMENT MISTAKES TO AVOID
CASHING OUT TOO SOON
INVESTING TOO LITTLE TO GET MAXIMUM MATCHING FUNDS
TAKING 401(K) LOANS
INVESTING TOO AGGRESSIVELY
ROLLING OVER INTO IRA SAVINGS