Utilizing this benefit offered by your employer is an essential key to saving for retirement. This money is withheld pre-tax from your paycheck, which will lower your taxable income for that year (or post-tax if participating with a Roth 401(k)). This money will grow tax-free until it is time for you to retire. Many employers contribute to these plans with matching and/or profit sharing. It is very important to understand your employer’s retirement plan so you are maximizing your contributions to get the maximum amount of match/profit sharing from your employer.
Contact us today if you need assistance determining the best plan for contributing to your employer’s retirement plan.