Enroll Cover

Why You Should Participate

There are many reasons you should participate in a 401(k) retirement plan. The most important reason is to save enough money to live comfortably when you retire. However, there are other immediate advantages to consider that may make participating in this plan even more important to you and your future. 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: Jane has an income of $35,000 per year and currently contributes $200 per month to her 401(k) plan. 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.

Calculate Contribution Percentage

Monthly contribution amount × 12 months ÷ Annual salary = Percentage of salary

$204 × 12 / $45,000 = 5.44% (rounded up)

Assuming the participant’s salary is $45,000 a year, the participant would need to contribute 6% of his or her salary to reach the annual contribution goal of 2,448.

The results: Jane deposited $2,400 into her 401(k) account during the year. By contributing money to her retirement plan, Jane accomplished two things: 1. Accumulated $2,400 for retirement 2. Saved $360 in taxes

Why Start Early?

On average, retired workers received $1,335 per month in 2015. 1

A couple, age 65, will spend about $295,000 of their income to cover healthcare costs, if they live to their life expectancy. 2

Inflation has averaged 3.34% over the last decade. It could possibly decrease your income over time. 3

1 Source: Social Security: www.ssa.gov/news/press/basicfact.html. June 2015 2 Source: “2015 Retirement Health Care Costs Data Report©,” HealthView Services. www.hvsfinancial.com/PublicFiles/Data_Release.pdf 3 Source: http://www.usinflationcalculator.com/inflation/historical-inflation-rates/