401k

NEWSLETTER DID YOU KNOW? CONTRIBUTING TO YOUR 401(K) NOW CAN HELP YOU IN RETIREMENT While day-to-day purchases tend to take precedence in our lives, saving for your retirement is just as important. Even a 2023 IRS ANNUAL small percentage of your pay can go a long way - especially when factoring in your employer match. CONTRIBUTION Your 401(k) allows you to divert money before it is taxed LIMIT each pay period into your account, where it then grows UNDER AGE 50 through investment funds until you finally withdraw it. You can withdraw from your 401(k) penalty-free when you turn 59 1/2, and while you can withdraw at any point in your life, $22,500 you face steep taxes if you take funds out early. The example below illustrates how much you can save over the course of your career: - Contribution: 10% of salary - Current age: 30 2023 IRS ANNUAL - Annual salary: $55,000 - Annual salary increase: 2% CONTRIBUTION - Employer match: 40% of your contribution up to 6% LIMIT Estimated balance at age 65: $1,227,913 OVER AGE 50 $30,000