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New to a Job?
Welcome aboard! Wherever you are. A new job offers so many new opportunities and challenges as you work your way through the maze of company policies and benefits…not to mention learning the ropes of your new job.
One of the first things to investigate is whether your new employer offers a retirement plan. If your employer offers a savings plan, such as a 401(k), get ready to jump on that band wagon as soon as you’re eligible to participate. If your employer provides a “match” for your contributions, it’s literally a gift of free money from your employer to your retirement.
Your employer’s retirement savings plan will let you:
- Save more, faster … thanks to the income tax benefits of pre-tax contributions and income tax-deferred growth potential
- Contribute easily … thanks to payroll deduction The money is gone before you can change your mind about it
- Great flexibility … now and when you’re retired in terms of how much you put in, where it is invested and how you can take the money out when the time is right.
Sounds Good – Now What Do I Do?
If we’ve convinced you this is a good deal, the process is simple.
- Attend any benefits meetings provided at work and make sure you carefully read everything your employer gives you about your available benefits.
- You decide how much to contribute and how money is invested.
- Your employer automatically takes contributions from your paycheck before tax is figured.
- Some employers match employee contributions.
- You pay no income tax on contributions and any growth until money is withdrawn.
It’s important to note that every plan is a little bit different. For instance, some may require you work for a certain length of time before you join. Your employer will have a “summary plan description” that you can review or talk to your Benefits department for more detail.
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