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401(k) PARTICIPATION BENEFITS PAC



Use this 401(k) Participation Benefits Pac to...
  • take notes during the video about 401(k) participation
  • gain a basic understanding of the advantages afforded by participating in the company 401(k) plan


EMPLOYEES...

Most people look forward to a financially secure retirement when we can do many of the things we don't have time for during our "working years." Unfortunately Social Security alone may not be enough to achieve a comfortable retirement. That's why it is so important to take the initiative yourself.

Self-motivation is what retirement planning is all about. The more you save, the more comfortable you should be later. Our company retirement plan ensures you get the most from your hard-earned dollars by making the tax system work for you. By contributing to a pre-tax savings plan like the 401(k) plan, you take the first step toward a more secure future.

The following pages explain some of the basic benfits of 401(k) participation. It’s really quite simple: by choosing to participate in our company 401(k) plan, you’ll enjoy...

  • Convenience and control
  • Income tax advantages
  • Tremendous savings potential
Other related information is contained in our plan’s Enrollment Pac and the accompanying Investment Decisions Pac, both of which you should have received with this 401(k) Participation Benefits Pac.





PART I. 401(k) PARTICIPATION VIDEO
ABOUT THE VIDEO

The video you are about to see is a slide show explaining the basic advantages of participating in a 401(k) retirement savings plan. It’s never too early or too late to start saving for your retirement years!

The presentation will not only help you decide whether or not the 401(k) is right for you but also the level of participation most suited to your needs. Especially if 401(k) plans are new to you, you might want to take some notes. We’ve compiled a sketch of the presentation and left you plenty of room to jot down notes as needed.
401(k) & YOU

 
 
 
 
 
VOLUNTARY PARTICIPATION

the voluntary retirement savings plan!

The 401(k) is a completely VOLUNTARY retirement savings program. You decide if it’s right for you.


 
 
 
 
YOU DETERMINE HOW MUCH MONEY TO SAVE

You determine how much money to save using 401(k).


 
 
 
 
SAVING MONEY... THE EASY WAY!

The 401(k) makes saving money easy. The amount you designated to set aside from your paycheck is deducted automatically before you receive your pay, helping you save money you might otherwise spend.


 
 
 
 
MONTHLY STATEMENTS

You will receive monthly 401(k) account statements showing how much you have set aside to date and the value of your growing account.


 
 
 
 
YOUR 401(k) IS PORTABLE

If you leave your company, your 401(k) funds go with you. You always retain complete control over them. If you transfer your 401(k) savings into a rollover IRA or new employer’s 401(k) plan, they will continue to grow tax-free until your retirement.


 
 
 
 
AUTOMATIC IRA ROLLOVERS

 
 
 
 
 
TAX SAVINGS

With 401(k) you get a year-end tax deduction! This tax savings means you keep more of what you earn!


 
 
 
 
REDUCED INCOME TAXES

 
 
 
 
 
TAX-DEFERRED GROWTH

The money you put into your 401(k) account grows and compounds TAX- FREE until you withdraw it at retirement (after age 59 1/2).


 
 
 
 
THE "TAX-DEFERRED" ADVANTAGE

Other things being equal, tax-deferred saving means your account grows more quickly!


 
 
 
 
INVESTMENT INFORMATION

You retain complete control over your 401(k) account at all times, including deciding how your money is to be invested. Your company 401(k) plan includes participants’ ongoing access to professional investment advice to help each participant determine which investments are right for him or her.


 
 
 
 
THREE PRINCIPLES OF GOOD INVESTING

 
 
 
 
 
PRINCIPLE 1: DIVERSIFY

Diversify your investment selections


 
 
 
 
PRINCIPLE 2: KNOW YOUR INVESTMENT TEMPERAMENT

Select investments that fit your personality, goals and temperament. You can use the worksheets and questionnaires contained in the accompanying Investment Decisions Pac to help you make this determination.


 
 
 
 
PRINCIPLE 3: PERSPECTIVE

Maintain a long-term perspective in choosing your 401(k) investments and devising an investment strategy.


 
 
 
 
EARLY WITHDRAWALS

Withdrawing your 401(k) money before you qualify (via age or disability) subjects the withdrawal to a 10% federal penalty fee plus income taxation; mutual fund early liquidation charges may also apply (see your investments’ prospectuses). You end up with substantially less than you withdraw!


 
 
 
 
PART II. CONVENIENCE & CONTROL
CONVENIENCE
401(k) plans are easy!
  • Signing up is easy: Just fiill out an Enrollment Pac.
  • Participating in easy: Your 401(k) contributions are AUTOMATICALLY deducted from your pay each month in the amount you designate, helping you save money you might otherwise spend.
  • Adjusting the 401(k) to any changes in your savings or investment goals is easy: Just give us a new Enrollment Pac with your new contribution rate and/or new investment choices.
  • A change in jobs is never a problem: You can take your 401(k) funds with you by either transferring them into a new employer’s 401(k) or putting them into an IRA Rollover. Such transfers are quick and easy -- and they keep your 401(k) savings tax-protected.
  • 401(k) contributions aren’t taxed until withdrawn from the plan. You enjoy a year-end tax deduction, because you otherwise would have had to pay income taxes on wages you put into the plan. What could be more convenient than that!
CONTROL
When you participate in a 401(k) plan, you’re in control:
  • You decide if you want to participate. The 401(k) is a completely voluntary retirement savings program.
  • You determine how much money you want to save using the 401(k), because you choose your contribution rate.
  • You choose the investments you want for contributions to your 401(k) account.
  • You can change your 401(k) investments and/or contribution rate if and when you want.
  • If you leave the company, you take your 401(k) funds with you; you decide whether to roll them over into a new employer’s 401(k) plan or put them into an IRA Rollover.



401(k)plans

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