CONLON CONSTRUCTION COMPANY 401(K) PROFIT SHARING PLAN

Tax Deferred Growth

You don’t pay taxes on money in your retirement account until you begin to use it as your income or withdraw cash. Your savings will stay invested and may earn interest for you, equaling faster growth.

Dollar Cost Averaging

Dollar cost averaging is buying a fixed dollar amount of an investment on a regular schedule, regardless of the price. More shares are purchased when prices are low and less shares are purchased when prices are high. Dollar cost averaging lessens the risk of investing a large amount in a single investment at the wrong time. You decide on the amount you want to contribute to your retirement account. This enables you to invest a fixed amount of money over a fixed period of time. Here’s an example: You contribute $50 per week. While the amount of $50 does not change from week to week, the price of the funds you invest in will. The lower the price of the shares at the time you contribute, the more you buy. Click here to see an example of dollar cost averaging.

Potential Tax Savings

When you contribute money–Pre-tax–to your 401(k) plan, you may keep more of what you have earned.

Here’s an example:

Income Taxes Taxable income before contributing $35,000 $5,250 Annual pre-tax contributions ($200 × 12 months) $2,400 - Taxable income after contribution $32,600 $4,890 Tax Savings - $360

Example for illustrative purposes only. Taxes are based on 2016 tax tables for a single filer. Consult for your tax advisor for specific information.