Advantages to investing in your 401(k) plan:

• Investing in a 401(k) account reduces taxable income from federal and state taxes
• Earnings on contributions accumulate tax free until distributed allowing you to take advantage of                  compounding interest
• Some employers offer matching contributions essentially giving you additional compensation by                    participating

Maximize your 401(k):

• Start Early
• Establish a plan and let time work for the program
• Contribute at the highest rate practical
• If possible, contribute the maximum annual deductible 401(k) amount each year
• If over 50 years of age, take advantage of catch-up contributions
• Diversify  your investments

How to withdraw your money:

• Retirement
• Disability
• Death
• Termination of Employment*
• Financial Hardship (purchase of primary residence, medical expenses, secondary tuition payments, funeral expenses)*

*(May be subject to a 10% federal penalty tax if distributed prior to age 59½)

How much can you save in taxes by contributing in your 401(k) plan?

Find out by clicking the link below.

401(k) Calculator

More 401(K) Education