Advantages of a 401(k) Plan
Your Advantages
You benefit because a 401(k) plan:
- Is mostly funded from dollars paid as salary
- Lets you deduct your contributions from taxes as a business expense
- Helps recruit and keep quality employees
- Helps members build retirement security
Employee Advantages
Plan members benefit because a 401(k) plan allows them to:
- Save through easy payroll deduction
- Choose the amount they want to save
- Change the amount saved to meet current needs
- Reduce their taxable income
- Defer taxes on the amount saved and its earnings until the members receive benefits from the plan
