401(k) plans have grown exponentially over the past decade.  They have become so popular, because they offer employers a flexible means by which to help their employees save for their own retirement.  Many experts consider a 401(k) retirement plan the PERFECT SAVINGS PLAN. 

Here's why:

1. Payroll deduction – Adds a forced savings element. You must pay yourself first.
2. Pre-tax dollars – Why not let the government contribute by letting you use tax-free dollars.
3. Tax-Deferred income – You pay no income tax on the income you earn until withdrawal.
4. Compounding Interest – You are earning tax- free "interest – on – interest".
5. Diversified Investment Options – Your money will be professionally managed.
6. Dollar Cost Averaging – By contributing small amounts over time you will buy shares at the lowest average price.
7. Penalty for Early Withdrawal – You would not expect this to be an advantage, but it helps you keep the money until you need it at retirement.
8. Generous Allowable Contributions – A 401(k) plan lets you invest up to 25% of pay.

   Do you need any more reasons to begin saving for your retirement? Keep reading because here comes the ultimate reason for signing up for a 401(k) plan!

9. Company Matching – Where else can you get a guaranteed and immediate investment return!

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Important Disclosure

BARKER & ASSOCIATES LLC is a Registered Investment Advisory firm in the state of Washington, located at 18500-156^TH Ave NE #206, Woodinville, WA  98072. Barker & Associates LLC is in compliance with current registration and /or filing notice requirements imposed upon Washington State Registered Investment Advisers. Barker & Associates LLC may only transact business in those states in which it is registered or qualifies for an exemption or exclusion for registration requirements