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Benna Ted - 401

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A guide to 401(k)s that provides information on choosing the right investments for a 401(k) account, understanding the plan, and minimizing risks while maximizing returns.

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401ks For Dummies by Ted Benna and Brenda Watson Newmann 401ks For - photo 1
401(k)s For Dummies

by Ted Benna and Brenda Watson Newmann

401ks For Dummies Published by Wiley Publishing Inc 111 River St - photo 2

401(k)s For Dummies

Published by
Wiley Publishing, Inc.
111 River St.
Hoboken, NJ 07030-5774
www.wiley.com

Copyright 2003 by Wiley Publishing, Inc., Indianapolis, Indiana

Published by Wiley Publishing, Inc., Indianapolis, Indiana

Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8700. Requests to the Publisher for permission should be addressed to the Legal Department, Wiley Publishing, Inc., 10475 Crosspoint Blvd., Indianapolis, IN 46256, 317-572-3447, fax 317-572-4447, or e-mail permcoordinator@wiley.com

Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries and may not be used without written permission. All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book.

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or to obtain technical support, please contact our Customer Care Department within the U.S. at 800-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

Library of Congress Cataloging-in-Publication Data:

Library of Congress Control Number: 2002110280

ISBN: 978-0-7645-5468-1

Manufactured in the United States of America

15 14 13 12 11 10 9 8 7

1B/RV/QS/QU/IN

Picture 3

About the Authors

Ted Benna is commonly referred to as the father of the 401(k) because he created and gained IRS approval for the first 401(k) savings plan. Ted is a nationally recognized expert on retirement issues whose articles and comments have appeared in myriad publications. Hes received many citations for his accomplishments, including:

Picture 42001 National Jefferson Award for Greatest Public Service by a Private Citizen

Picture 52001 Impact Player of the Year selected by Defined Contribution News

Picture 6One of eight individuals selected by Money magazine for its 20th Anniversary Issue Hall of Fame

Picture 7One of four People of the Century selected by Business Insurance

Ted has been profiled in The New York Times,Pensions & Investments, USA Today, Employee Benefit News, Human Resource Executive, Fortune, Plan Sponsor, Kiplinger, and many other publications. Hes authored three other books: Helping Employees Achieve Retirement Income Security (Investors Press), Escaping the Coming Retirement Crisis (Pinon Press), and Tips for Successfully Managing Your 401(k) (401(k) Association).

During his 40-plus-year career, Ted has helped thousands of employers establish, restructure, and administer their retirement programs. He is president and founder of the 401(k) Association, and a special consultant to mPower Advisors and MassMutual Retirement Services.

Brenda Watson Newmann is a writer and editor dedicated to helping ordinary folks understand complicated topics. From 1998 to 2003 she was in charge of editorial content for the mPower Cafe, a leading educational Web site for retirement investors. Under her direction, the site won accolades including Forbes magazines Best of the Web.

Brenda keeps attuned to the concerns of 401(k) investors through the e-mails she receives regularly from readers. She frequently writes articles on retirement investing, and shes been interviewed by media outlets, such as USA Today and Investors Business Daily.

Brenda began her writing career with The Associated Press, and was a foreign correspondent in Germany and Switzerland. She is a graduate of Stanford University and the Johns Hopkins University School of Advanced International Studies.

Dedication

I dedicate this book to Ellie, my first and only wife, who has been my life companion for 40 plus years; our four children, Debbie, Dave, Steve, and Dan; their spouses, Drew, Donna, and Laura; and our grandchildren, Mark, Neil, Matthew, Ryan, Michael, Olivia, Alison, and Christopher. You have all helped to make my life worthwhile.

Ted Benna

To my husband, Robin, for his unwavering support of my work and his ability to make me laugh, and to Adeline and Dominic for patiently accepting my refrain of not now, Mommys busy writing during this project.

Brenda Watson Newmann

Authors Acknowledgments

Our thanks to the many people at Wiley Publishing, Inc. who helped bring this book to fruition. Thanks especially to Acquisitions Editor Pam Mourouzis for getting the project off the ground and to Allyson Grove, our Project Editor, for her fine work orchestrating this books creation. Thanks also to copyeditor Greg Pearson for making sure we remembered to dot our is and cross our ts, and to the talented folks in Production for creating this attractive book. Many thanks to everyone else at Wiley Publishing, Inc. who played a role in bringing this book to the reading public.

Were also grateful to our technical reviewers, attorneys Marla Kreindler and Jeffrey Bakker, for lending their expertise to this book and ensuring that we didnt leave out anything important.

Brenda acknowledges her colleagues at mPower who have worked through thick and thin to bring professional investment advice and education to ordinary folks trying to plan for retirement. Finally, she sincerely thanks everyone family, teachers, co-workers, and friends who has ever taken the time to explain something unfamiliar to her in laymans terms. That is the spirit in which this book is written.

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