A retirement savings plan sponsored by employers to help employees save for their retirement.
Plan for a financially secure retirement with expert guidance on 401(k) plans offered by AAdvantage Insurance Group in Illinois. Our comprehensive financial planning services can help you take full advantage of your employer-sponsored retirement plan to build a strong foundation for the future.
A 401(k) plan is a retirement savings plan sponsored by employers to help employees save for their retirement. It allows eligible employees to contribute a portion of their pre-tax income to the plan, which is then invested in various investment options. The contributions grow tax-deferred until withdrawn during retirement.
Employer Matching Contributions: Many employers offer matching contributions to 401(k) plans, which can significantly boost your retirement savings. Matching contributions are essentially "free money" from your employer and can help you grow your retirement nest egg faster.
Tax Advantages: 401(k) plans provide tax advantages that can enhance your savings potential. The contributions you make to your 401(k) are typically tax-deductible, reducing your current taxable income. Additionally, the earnings on your investments grow tax-deferred until withdrawn, allowing for potentially greater compounding over time.
Contribution Flexibility: With 401(k) plans, you have the flexibility to contribute as much as you are comfortable with, up to the annual contribution limit set by the IRS. Some plans may also offer catch-up contributions for individuals aged 50 and older, allowing them to save even more as they approach retirement age.
Gain confidence in your retirement strategy and take the necessary steps to achieve your long-term financial goals.
Traditional 401(k): In a traditional 401(k) plan, your contributions are made with pre-tax dollars, reducing your current taxable income. However, withdrawals during retirement are taxed as ordinary income.
Roth 401(k): Roth 401(k) plans allow you to make after-tax contributions, meaning your withdrawals during retirement are tax-free. This option can be advantageous if you anticipate being in a higher tax bracket during retirement.
At AAdvantage Insurance Group, we understand that retirement planning requires a personalized approach. Our team of experienced financial planners in Illinois will work closely with you to assess your financial goals, risk tolerance, and retirement timeline. We will help you optimize your 401(k) contributions and investment choices to align with your unique needs.
By leveraging our financial planning expertise, you can gain confidence in your retirement strategy and take the necessary steps to achieve your long-term financial goals. Contact AAdvantage Insurance Group today to schedule a consultation and start building a secure retirement with your 401(k) plan.
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