401(k) Retirement Plan: [CARRIER]
Plan for retirement by contributing to the ABC Company 401(k) Retirement Savings Plan on a pre-tax or after-tax basis. It offers a wide variety of investment funds so you can choose what best meets your needs.
Advantages of Contributing
The 401(k) Retirement Savings Plan helps you meet your financial goals with the following advantages:
- Tax savings on pre-tax contributions
- You may contribute 1% to 75% of your pay
- 2018 IRS Maximum: $18,500
- Catch-up contributions age 50 and over: $6,000
- Discretionary company matching contributions
- Choice of investment funds
- Convenient payroll deductions
Roth 401(k) Account
In addition to the traditional 401(k) plan, you also have the opportunity to contribute to a Roth 401(k). Roth contributions are made on an after-tax basis.
Because 401(k) plans are designed for retirement savings, there are rules that specify when you can receive funds from the plan.
Before age 59½, you may withdraw funds only if you:
- Leave the company Become disabled
- Experience a financial hardship
Any funds you receive before age 59½ may be subject to current taxes and possibly a financial penalty.
You may change the amount you are contributing to your 401(k) and your investment allocations at any time.