Reasons why you should participate in your 401(k) plan:

• · It’s easy and convenient: The amount you choose to contribute is automatically deducted from your paycheck. You won’t see the money, so you won’t spend it! Payroll deduction will make it easy for even the most savings-challenged individuals!
• · Easy enrollment: If your employer offers a 401(k) plan, then consider yourself lucky – not everyone is offered a retirement plan at work. Since your employer provides all the enrollment materials to get you started on your savings plan, then all you have to do is pick up a pen, fill out the enrollment form, and you’re on your way to saving! Do it!
• · You call the shots: With your 401(k) plan, you are the boss. You get to choose how much you want to contribute and where you want to invest your money. You also have the option of changing your contribution amount or transferring money among your investments if necessary. Your 401(k0 statements will make it easy for you to track how much you are saving.

• · It will always be your money: Whatever money you contribute to a 401(k) plan is yours -- even if you leave your job. You may have to be vested to be entitled to your company match, but you can still always roll your money into a rollover individual retirement account (IRA) or your new employer’s plan where it can continue to grow tax-deferred.
• · Get free money from your employer with a company match: To encourage more employee 401(k) participation, some companies will offer to do a company match. For example, a company may offer to put in another dollar for every dollar you save in the plan, up to 3 percent of your eligible pay. Then, it may add 50 cent for every dollar you put in after that up to 6 percent of your pay. That’s like getting a 75 percent investment return!
• · You don’t want to have any regrets 10 years down the line: Saving $20 a week now may seem impossible, but the reality is that you cannot afford not to save. It will always seem challenging to put money aside for your future, but if you don’t take advantage of saving even a little today, you may have to face the challenge of saving a lot later to make up for lost time and money! (See money saving tips below.)

What is a 401(k) plan?

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Reasons why you should participate in your 401(k) plan:

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