A Pearson 401(k) retirement plan is a retirement benefits plan where an employee allocates a percentage of his pay check to the plan. These contributions are tax deductible. Employees who are 59�� years or older are exempted from tax deductions, says Pearson Financial Group.Continue Reading
An employee can qualify for tax-free distribution only if he complies with the five-year holding rule. The maximum an employee can accumulate annually is $18,000 as of 2015. An additional $6,000 is allowed for individuals who turn 50 years or older before the tax year ends, according to Pearson Financial Group.
The retirement plan also offers loans of up to 50 percent of the employee���s account value. These loans are payable over a five-year period. However, if the employee leaves his job immediately, he is subject to repaying the loan immediately, as reported by Pearson Financial Group.Learn more about Financial Planning