Did you know that there are employer-sponsored accounts that can help employees save for retirement? These accounts are a great way to save money, and they offer a lot of benefits for both the employee and the employer. Here is a look at three of the best employer-sponsored accounts available today.
401(k)
Employers who offer a 401(k) plan may provide matching contributions, making it an especially powerful tool for employees to grow their savings. In addition, 401(k)s have special tax advantages that can help employees save even more.
For example, 401(k) contributions are made with pretax dollars, and the money in the account grows tax-deferred. This means that employees can save more than they would be able to with other types of accounts. As a result, a 401(k) can be a great way for employees to prepare for retirement.
HSA
An HSA, or Health Savings Account, is an employer-sponsored account that helps employees save for medical expenses. Contributions to an HSA are tax-deductible, and withdrawals are tax-free, making it a valuable tool for saving healthcare costs.
HSAs cover all kinds of medical expenses, including dental care. In addition, funds in an HSA can be invested, allowing employees to grow their savings over time. For these reasons, an HSA can be an important part of any employee benefits package.
403(b)
For many workers, saving for retirement can feel like an uphill battle. Between everyday living expenses and the ever-present temptation to spend, it can be difficult to put away enough money to comfortably enjoy your golden years. However, employer-sponsored savings accounts like 403(b)s can help make retirement planning a little easier. 403(b) accounts are tax-deferred savings plans that are available to employees of public schools and non-profit organizations. Like 401(k)s, contributions to a 403(b) account are deducted from your paycheck before taxes are taken out, which can lead to significant tax savings.
In addition, many employers offer matching contributions, meaning that they will match a certain percentage of your own contributions. As a result, 401(b)s can be an extremely powerful tool for building retirement savings. If you are eligible for a 403(b) account, be sure to take advantage of this valuable benefit.
If your employer is offering sponsored accounts and you’re not taking advantage of them, you are leaving free money on the table. Most employers will offer a match of your contributions, so you should set an account up now if you don’t already have one. Consider these three employer-sponsored accounts to save money.
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