Benefits from Investing in a 401(k) Plan

• Employer contributions and earnings on your 401k account grow tax-deferred.
• Current gross income is reduced by the amount you contribute.
• Automatic payroll deductions make saving for retirement easy. You control your own account.
• If you leave your current employer, you have the option of rolling your 401k money over into an IRA (Individual Retirement Account) or a new employer's plan or withdrawing the money.
• You can invest in professionally managed funds at no minimums. Your money is invested in funds that you choose or your employer might make the investment choices for you.
• You may be able to borrow from your account. Many plans have loan features that let you withdraw money (without taxes or penalties) as a "loan to yourself." You pay the loan back automatically through payroll deduction, and the loan interest goes into your own account, too.
• Employer may contribute matching funds on a portion of your savings. If so, you reap instant earnings on your investment.
• You have the option to contribute the amount you feel you can afford to your 401K plan, up to the maximum allowed by the government.