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Take Full Advantage of Your Employer's 401(k) Plan
Longer life spans, more active retirements, rising costs and uncertainty over Social Security make the need for a substantial retirement nest-egg greater than ever. Luckily, many corporate retirement plans offer employees control over building that nest egg.
Benefits of 401(k) Plans
Convenient Saving. Contributions each pay period make it easier to accumulate significant amounts over time.
Employer Contributions. In most plans, the employer also "matches" some portion of the employee amount each period. Some employers also make contributions based on financial results.
Tax Deferral. Employees are not taxed on the portion of their wages they contribute. Funds in a 401(k) plan are not taxed until withdrawn.
Investment Flexibility. Plans often provide extensive investment options including mutual funds, company stock and other fixed income choices.
Making the most of your 401(k) plan
Retirement plan benefits will probably be one of your greatest sources of retirement income. Getting the maximum benefit from your plan is simple.
Include your retirement plan in your financial planning. Your retirement plan should be an integral part of your overall financial strategy. Make sure you consider it as you design and implement an overall financial strategy.