401(k)

A 401(k) plan is a qualified deferred compensation plan which enables you to save money, lower taxes, and invest in your financial future. Under a 401(k) plan, your elective contributions are made on a before tax basis; that is, the amount deferred will be excluded from your taxable income. This may currently lower your taxes. The following are some advantages of our 401(k) plan.

  • The annual individual elective contribution limit (aggregate of all designated Roth contributions and traditional, pre-tax contributions) - $16,500 in 2009, with an additional $5,500¬†if age 50 or over, and subject to cost of living adjustments¬†for future years
  • Deferrals are made before tax; therefore, you pay less in Federal and State income taxes
  • Earnings and income are not taxed until the money is distributed from the plan. When you receive your retirement benefit you may be in a lower tax bracket than you are currently.