Simplify the process for saving.
These common plans can streamline your retirement savings.
What does a 401(k) or 403(b) plan offer?
- Automatic payroll deductions to help you make saving a habit
- Reduced taxable income, through pre-tax contributions
- Matched contributions, up to a certain percent (from some employers)
- Long-term savings and growth potential across a variety of investment options
If your employer offers a 401 (k), 403(b), or a governmental 457(b) plan with services through 51³Ô¹ÏºÚÁÏ®, .
Saving a little today may add up to a lot tomorrow.
If you’re already enrolled in a 401 (k), 403(b), or 457(b) plan with services through 51³Ô¹ÏºÚÁÏ, consider increasing the amount you contribute from each paycheck. Even a few extra dollars per paycheck may add up significantly over time—and it only takes a few minutes.
to increase your contributions.
Tax benefits can help you save more.
Contributions to a 401 (k), 403(b), or 457(b) plan that come out of your paycheck on a pre-tax basis reduce your taxable income. Potentially, this could push you to a lower tax bracket, too.
In 2024, the yearly contribution limit increased to $23,000,
Looking for a retirement plan Loan?
When bills or debt feel overwhelming, it can be tempting to consider borrowing against your account in a 403(b), 401 (k), or 457(b) plan. But the trade-offs can be steep—and we want to make sure you understand them.
In the long run, you may pay more than the loan amount you withdraw, including:
- any initial set-up and quarterly loan fees,
- taxes you pay on the money you use to repay your loan, and
- interest paid to yourself based on loan interest rates over time.
In addition, you may miss out on some potential growth and compounding of your earnings, which can be a major advantage of long-term savings in an account under 401 (k), 403(b), or 457(b) plans.
To give you an idea, $20,000 in a 401 (k), 403(b), or 457(b) account could triple in 20 years at an average 7% rate of return—but not if you withdraw it today.