Many Americans are worried about financial security in retirement. An employer-sponsored retirement plan is one of your most powerful tools for pursuing a comfortable retirement. The money you invest in your 401(k) has tax deferred growth potential and generally only becomes taxable once withdrawals begin in retirement. By making pre-tax contributions to your retirement plan, you also reduce your income each year, helping to lower your annual tax bill.
Even if your retirement is years away, some advance strategizing now will help you evaluate your current savings, estimate how much you’ll need to save for a comfortable retirement lifestyle, and help you remedy any potential income shortfalls.
We developed this guide to help you or a loved one understand the steps involved in preparing for retirement and making the most of your options if you contribute to a 401(k) retirement plan.