Page 18 - Guide
P. 18
2017 Benefits Enrollment
Company Contribution
The company contributes 50% on the irst 3.5% of your contributions to
your 401(k) account.
The immediate advantage of pretax investing
Pretax plan account After-tax savings account
Weekly pay $450.00 $450.00
Weekly savings $25.00 $25.00
Taxable income $425.00 $450.00
Federal income taxes at a $106.25 $112.50
hypothetical 25%
Take-home pay after taxes $318.75 $312.50
Weekly increase in take- $6.25
home pay
After 1 year, that adds $325.00
up to
Example
Gross weekly pay $300.00
3% employee contribution $9.00
Company match $4.50
TOTAL SAVINGS PER WEEK $13.50
Don’t Underestimate a Small Contribution
Don’t underestimate how a small amount of money can grow over time,
especially in a plan like yours. Any earnings on your savings are reinvested
right into your account—where they can produce additional earnings.
The longer this “compounding” process continues, the better your
chances to accumulate the money you need. And you will not pay taxes
on either your original investments or any investment earnings until
withdrawal. You have the opportunity to save big, even if you have to
start small.
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Company Contribution
The company contributes 50% on the irst 3.5% of your contributions to
your 401(k) account.
The immediate advantage of pretax investing
Pretax plan account After-tax savings account
Weekly pay $450.00 $450.00
Weekly savings $25.00 $25.00
Taxable income $425.00 $450.00
Federal income taxes at a $106.25 $112.50
hypothetical 25%
Take-home pay after taxes $318.75 $312.50
Weekly increase in take- $6.25
home pay
After 1 year, that adds $325.00
up to
Example
Gross weekly pay $300.00
3% employee contribution $9.00
Company match $4.50
TOTAL SAVINGS PER WEEK $13.50
Don’t Underestimate a Small Contribution
Don’t underestimate how a small amount of money can grow over time,
especially in a plan like yours. Any earnings on your savings are reinvested
right into your account—where they can produce additional earnings.
The longer this “compounding” process continues, the better your
chances to accumulate the money you need. And you will not pay taxes
on either your original investments or any investment earnings until
withdrawal. You have the opportunity to save big, even if you have to
start small.
18
