Why you should join a 401(k) plan

A retirement plan may be one of the most valuable benefits of employment. Used effectively, it can deliver a long-term impact on your financial well-being. See how a retirement plan works and learn about the power you have to control your financial future.

Give yourself a raise

One reason to consider joining your employer’s 401(k) plan is because many employers will match your contributions up to a certain limit. That’s right – they’ll kick in extra money for your retirement, as a reward to you for joining the plan. It’s like giving yourself a raise or a yearly bonus! If you don’t join or contribute to your retirement plan, neither does your employer – and that potential benefit is left on the table.

Start planning for retirement now

It’s never too early to plan for retirement. Contact your company’s HR representative to see how you can start a 401(k) or other retirement plan. Prepare to ask questions about plan features, so you know the ins and outs of your employer's retirement planning options.

Keep in mind that the employer match may be subject to a vesting schedule. Withdrawals are taxed as ordinary income and, if taken prior to age 59½, they may be subject to a 10% early withdrawal tax.

Any investment is subject to market risk, including possible loss of principal.

Consider these 401(k) benefits and features

Here are some additional resources on your retirement planning options:

Deciding to enroll: Some factors to think about as you consider enrolling in your 401(k) retirement plan.

Questions to ask your employer: Consider asking these questions when starting a new job or enrolling in a retirement plan.

Earn more with an employer match: If your employer matches a portion of your contributions, consider putting in at least enough to get the full match.

You may be enrolled automatically: Your employer may enroll you in a plan automatically. Learn how that could help you prepare for retirement.

Over 50? Consider catch-up contributions: Learn about catch-up provisions for your 401(k) and other retirement accounts.

Are you on track for retirement?: Use our My Interactive Retirement Planner^SM to estimate how much you’ll need to save for retirement.

Enroll in your retirement plan: It’s never too early to start investing for your retirement.