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Investments

Employer 401(k) plan

An employer 401(k) plan is an employer-sponsored retirement savings plan that gives employees a choice of investment options—typically mutual funds. Employees who participate in a traditional 401(k) plan have a portion of their pre-tax salary invested directly in the option or options they choose. These contributions and any earnings from the 401(k) investments are not taxed until they are withdrawn.

In New Mexico, as in other states, an employer 401(k) plan is a common retirement savings vehicle that allows employees to contribute a portion of their pre-tax salary to selected investment options, often including a variety of mutual funds. The contributions made to a traditional 401(k) plan, along with any investment earnings, are tax-deferred, meaning they are not subject to federal or state income tax until the employee withdraws the funds, typically upon retirement. The specific regulations governing 401(k) plans are primarily established at the federal level through the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. New Mexico follows these federal guidelines and provides additional state-level protections for retirement plan assets against creditors. Employers offering 401(k) plans must comply with federal requirements regarding non-discrimination, contribution limits, and reporting and disclosure obligations.

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Investments

Employer 401(k) plan

Individual & Family Legal Plan

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New-Mexico State Code

New-Mexico State Code

Investments

Employer 401(k) plan

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