Top Benefits of a Savings Plan

A savings plan is a unique way to save for your future. In a defined contribution plan, like a 401(k), you choose an amount you want to contribute to your account each month.

A company match is also offered. The company contributes 100% of the first 3% of your eligible compensation that you contribute. Be sure you are saving enough to get the full match! A company match is like an instant return on your investment.

When it comes to contributions, the plan allows you two tax options: pre-tax or post-tax (Roth). When you put money in before taxes, it reduces your taxable income and you pay lower income taxes now. You defer paying taxes until you need your money. You can also contribute on an after-tax basis. With Roth contributions there are no immediate tax benefits, but when you take your money out during retirement it is tax free. There are contribution limits on how much you can contribute each year. In 2023, the 401(k) maximum amount allowable is $22,500.

To learn more about your 401(k) Plan, click here.