While every employer offers a different benefits package, one common feature is a 401k plan that employees can join after completing a probationary period. When you are eligible to participate, joining your employer’s 401k in Scottsdale, AZ, can provide you with a few very tempting benefits. There are several different ways that participating in the plan will help you with your retirement planning strategy.
Get Free Money
The biggest advantage of joining a 401k plan is that you’ll get free money in the form of matching contributions. Your employer will match any contributions you make up to a predetermined percentage of your pay. You’ll have to stay with your employer and continue participating in the plan until those funds become vested, but that’s usually just a period of five years or less.
Enjoy Tax Breaks
The contributions you make to your 401k plan are not considered taxable income, which means you’ll owe less at the end of the year. The earnings you make on your 401k investments are also tax-deferred. This means you’ll only pay taxes on your 401k funds upon withdrawing them.
Stop Worrying About Retirement
When you join your employer’s 401k in Scottsdale, AZ, all of your contributions will be automatically deducted from your pay. This takes the worry out of retirement planning. Your contributions will be automatically added to your account and invested according to your investment strategy. As a result, you can grow your retirement wealth faster.
For more comprehensive retirement investing guidance, contact Dale Brunk, CEBS, AIF at Landmark Financial by visiting their website at Sitename.
Disclaimer:
Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠.
Insurance services offered through an Avantax affiliated insurance agency.
