If you’re striving to ensure your financial security in the future, a 401k plan should be at the top of your list. Not only does a 401k plan provide a way for you to save for retirement, but it can also provide tax advantages that aim to help you save money now and later.
A 401k plan is a retirement savings plan offered by employers. Employees can make pre-tax contributions to their 401k plan and the employer may also choose to match a portion of the employee’s contribution. All contributions to a 401k plan are invested in a variety of different investments and grow over time.
The primary benefit of a 401k is that it can help you save for retirement. Because contributions are made pre-tax, your contributions are not subject to income tax when they are made. This means that you will save money now, and then when you withdraw the money in retirement, it will be taxed at that time. This is known as “tax deferral” and can help you save money over the long-term.
In addition to the tax advantages, a 401k plan can also help you save money in other ways. For example, many employers offer matching contributions up to a certain percentage of the employee’s contribution. This can give you an additional return on your investment, which can help you pursue your retirement goals faster.
Finally, a 401k plan can help you stay on track with your retirement goals. Many employers offer automatic enrollment and increase features, which allow you to automatically increase your contribution each year. This can help you save more over the long-term and seeking to ensure that you are meeting your retirement goals.
If you’re looking to increase your financial security in the future, a 401k plan should be part of your financial plan. To learn more about how a 401k plan can help you pursue your retirement goals, we invite you to schedule a meeting with our team. Our team of experienced financial advisors can provide you with the information you need to make informed decisions about your financial future. Please schedule a meeting by giving us a call (307) 586-2700 or click this link https://go.oncehub.com/BenPayton.