Page 5 - Gallagher Benefit Services - Financial Newsletter

Where To Save?
The retirement savings vehicles noted below are the most popular ways to save for retirement. Each o er their own advantages and you can choose to open and invest in one or all of these accounts.
ABC Company 401(k) Plan
Company sponsored retirement plans like the ABC Company 401(k) Plan o er several tax advantages. Any contributions made to the account will reduce your taxable income. Your earnings on those contributions are withdrawn tax free at retirement age. It also puts your savings on auto pilot. Once you set up the account and elect your contribution percentage, automatic deductions will be taken out of your paycheck and deposited into your
retirement account. You can contribute up to IRS established maximum limit of $18,000 in 2016. Although you bene t from saving early, the IRS also encourages those 50 and over to bump up their retirement balances through the “catch-up” contribution provision which allows individuals to invest an additional $6,000 in their company sponsored plan.
But, consider the best advantage of participating in the ABC Company 401(k) Plan - we will match your contributions dollar for dollar up to the rst 4% of your pay that you put in. You get nancially rewarded for saving for your future! Also look for opportunities to bump up your savings a little each year. You’ll barely feel the di erence in your paycheck yet it will make a big di erence in your balance over time. For more detailed information about the ABC Company 401(k) Plan see
the Summary Plan Description available at HRLink, www.ABCCompanygroupbene ts.com.
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2016 Financial Series September 5