Your employer's retirement plan is a great way to save because it offers:
- You decide how much to contribute within plan limitations.
- You choose how to invest your contributions.
- Your contributions are deducted automatically from your paycheck.
- Automatic deductions allow you to take advantage of systematic investing.*
- There are a variety of investment choices to fit your needs.
- Your pre-tax contributions may reduce your current taxable income, lowering your current annual income taxes.
- Your participant account assets can accumulate without being taxed until you begin withdrawals.**
- You can take your vested participant account balance with you if you change employers.
- You can monitor your participant account any time by phone or website.
- You can adjust your contributions and investment choice decisions.
- When you save in a retirement plan, you have the potential to earn a return not only on the amount you contribute, but also on any earnings your contributions generate (and on any earnings those earnings generate). So your participant account assets may accumulate faster.