MANAGE & SUPPLEMENT YOUR 401(K)

For most people, an employer-sponsored retirement plan is the easiest way to prepare for retirement in a cost-effective manner. Here are the primary advantages:

• No up-front taxes-money that you contribute is generally pre-tax dollars and your earnings are not taxed until you start withdrawing money. Usually, you'll be in a lower tax bracket when you begin withdrawing money.
• Variety of investments-there are typically a wide range of investment types in plans offered by employers and you can select the investments that work best for your goals.
• Employer contributions-most retirement plans offer some type of employer contributions. The most common method is for the employer to match the contributions that you make yourself (up to a specified percentage). Another method is direct employer contributions into your account on your behalf.

The type of retirement plan offered varies by employer. Contact your employer to find out if you're eligible for a 401(k), Defined Benefit Plan, Profit Sharing, or another type of retirement plan.

Whether you're just beginning to save for retirement or getting close to using your nest egg, the following information may help you maximize the earning potential of your savings.