RP Companies, Inc. is proud to announce the rollout of a new 401(k) plan for full-time employees. Under the new plan, retirement savings contributions are provided and deducted from the employee’s paycheck before taxation. This means all contributions are tax-deferred until the money is withdrawn during retirement. A retirement savings account would be created for commitment towards saving for the future.
401(k) plans are one of the best ways to save for retirement. With different plans available, employees can decide how to invest their money. Some plans may be considered a safer investment because the risk is lower and the yield is long-term, while other plans might be higher-risk investments because the yield is not as secure and is more short-term. Employees can determine which type of investment is best for them.
Some of the advantages of investing in a 401(k) plan are:
- Lower taxable income
- Savings and earnings accumulate without having to remember to make deposits
- Employees are in control of how their money is being invested
- The opportunity to retire and not have to worry about money
Employees may also choose to set up an Individual Retirement Account or IRA through another financial institution to increase their contributions toward retirement. Just like a 401(k), an IRA plan provides tax advantages for retirement savings.
“Once you begin taking care of your money, I can promise that your money in turn will take care of you.” – Suze Orman