Many Americans worry about their financial security during retirement. An employer-sponsored retirement plan is one of your most powerful tools for pursuing a comfortable retirement. The money you invest in your 401(k) has tax-deferred growth potential, and generally, only becomes taxable once withdrawals begin in retirement. By making pre-tax contributions to your retirement plan, you also reduce your income each year, which may help manage your annual tax bill.
Even if your retirement is years away, some strategizing now can help you evaluate your current savings, estimate how much you may need to save for a comfortable retirement lifestyle, and help you remedy any potential income shortcomings.
We have developed this guide to help you or a loved one understand the steps involved in preparing for retirement and making the most of your options if you contribute to a 401(k) retirement plan. Keep in mind: this whitepaper is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your retirement strategy. Remember, tax rules are constantly changing, and there is no guarantee that the treatment of certain existing rules will remain the same.