Achieving Future Financial Security
401(k) Plans
Take hold of your financial future with a 401(k) investment plan for security after retirement. You’re in the driver’s seat as to how you want to invest your money, making you the sole decision maker as to how much you will retire with.
Contact us today to find out how we can help.
How a 401(k) Works
In simple terms, a 401(k) is a retirement plan created for you by your employer. After enrolling, you determine a percentage you’d like to contribute to your account from each of your paychecks. The funds you put in are then put into investments personally chosen by you, taking into account your future financial goals and risk tolerance. Upon retiring, you’ll have this accrued money available to you so you can support yourself without having to work.
401(k) plans are designed to set you up for financial security after retirement, thus it’s not usually recommended to withdraw money early. On top of income taxes, you’ll find a 10% penalty if you’re under the age of 59 ½.
Read the benefits section below to find out if a 401(k) is right for your future financial goals.
* Federal income tax laws are complex and subject to change. Neither Nationwide nor its representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to specific questions.
Benefits of a 401(k)
The following benefits of a 401(k) plan may help you decide if it’s something you want to invest in:
Contributions are tax-deferred – Whatever amount you invest in your 401(k) is taken right from your paycheck before taxes are factored in. This allows your contributions to accumulate more quickly. Then, after you empty your account in retirement, you’ll pay taxes on it, but you’ll likely be in a lower tax bracket, saving you money in the long-term.
Your employer may match your contributions – Your employer most likely will match a portion of your own 401(k) contributions, creating a much larger sum to be withdrawn when you hit retirement.
If you’d like to learn more about setting up a 401(k), talk to one of our qualified registered representatives by requesting a quote.