What Are The Benefits Of Medliant’s 401(k) Retirement Option?

Medliant proudly offers our USRNs a 401(k) retirement option to help you and your family prepare for retirement! A 401(k) retirement plan offers valuable benefits that can help individuals save and invest for a secure retirement. Some of the key advantages of participating in a 401(k) retirement plan include:

1. Tax-deferred growth: Contributions made to a traditional 401(k) are typically made with pre-tax dollars, meaning the money is deducted from your paycheck before taxes are calculated. This lowers your taxable income in the year you make the contribution, and you won't pay taxes on the contributions or their investment gains until you withdraw the money in retirement. This tax-deferred growth allows your investments to compound over time, potentially leading to significant savings for retirement.

2. Contribution limits: 401(k) plans have relatively high contribution limits compared to other retirement savings vehicles. As of 2024, individuals under the age of 50 can contribute up to $23,000 per year to their 401(k) accounts, while those aged 50 and older can make additional catch-up contributions of up to $7,500, for a total of $30,500 per year.

3. Automatic contributions: 401(k) contributions are typically deducted directly from your paycheck, making it easy to save for retirement consistently. This automatic saving feature helps individuals build their retirement nest egg without having to remember to make regular contributions.

4. Investment options: Most 401(k) plans offer a range of investment options, allowing participants to choose investments that align with their risk tolerance, time horizon, and retirement goals. These options often include a variety of mutual funds, index funds, and target-date funds.

5. Portability: If you change jobs, you can typically roll over your 401(k) account balance into an IRA or your new employer's 401(k) plan, allowing you to maintain the tax-advantaged status of your retirement savings and continue building upon your existing investments.

6. Loan options: Some 401(k) plans allow participants to borrow against their account balances in the form of a 401(k) loan. While borrowing from your retirement savings should be approached with caution due to potential tax implications and the risk of reducing your long-term savings, it can provide a source of emergency funds if needed.

7. Creditor protection: In many cases, funds held in a 401(k) plan are protected from creditors in the event of bankruptcy or other financial difficulties, providing an additional layer of security for your retirement savings.

Overall, a 401(k) retirement plan provides an efficient and tax-advantaged way to save for retirement, with the potential for tax-deferred growth, and a variety of investment options to help individuals build a secure financial future.

Remember to always speak to a financial advisor to guide you before making any financial decisions for both yourself and your family!