Investment choices generally range from 8 to 37 mutual funds, or variable annuities. Some 401K plans permit participant directed individual stock transactions, and some permit company stock purchase within the plan. Some 401K mutual fund, variable annuity companies offer credits to new accounts to offset expenses associated with 401K account transfers from one mutual fund, variable annuity company to another. Some plans permit direct loan, hardship loan, disability loan provisions. Participants can start, stop contribution during course of year, as determined by the company.
Plans are subject to top heavy testing and discrimination testing.
Typically the amount the owners and highly compensated individuals can contribute to a 401K is a function of the contributions of the other employers. Plans can be switched from one mutual fund to another mutual fund company or to a variable annuity, or visa versa. In some cases, 401K Plans can be terminated and other more efficacious and cost effective plans can be instituted. Numerous mutual fund and variable annuities are available for these plans. Moving 401K and other retirement plans from prior employers is a common ongoing occurrence.