Build Wealth with Purpose: 401(k) Planning for Retirement

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Building wealth through your 401(k) is one of the smartest moves for long-term financial security—and here’s why it’s such a powerful tool:

💰 Tax Advantages

• Contributions are made pre-tax, reducing your taxable income today
• Investments grow tax-deferred, meaning you don’t pay taxes on gains until withdrawal
• Roth 401(k) options allow for tax-free withdrawals in retirement if conditions are met

📈 Compound Growth Over Time

• Regular contributions + market growth = exponential gains
• Starting early gives your money more time to grow through compounding

🎁 Employer Matching = Free Money

• Many employers match a portion of your contributions
• Not taking full advantage is like leaving part of your paycheck on the table

🔒 Automatic & Consistent Saving

• Contributions come straight from your paycheck
• You save without having to think about it—making it easier to stay disciplined 

 📊 Higher Contribution Limits Than IRAs
 

• In 2025, you can contribute up to $23,500, with a $7,500 catch up if you’re 50-59 or 64+
• Workplace savings plans allow significantly more contribution amounts than traditional or Roth IRAs
• Workplace employer Roth 401k plans do not have income phase out like the Roth IRA does so high income earners can still contribute out of their paycheck directly into a company Roth 401K and not be phased out due to high income.

Enhanced Catch-Up for Ages 60–63

• If you're between ages 60 and 63, you may qualify for a higher catch-up limit of $11,250
• That means your total contribution could reach $34,750, if your plan allows it

🧭 Built-In Investment Options
 

• Most plans offer diversified mutual funds or target-date funds
• You don’t need to be an expert to get started but you do need to understand the investment options given and we can help educate you.
• In short, your 401(k) is a tax-efficient, employer-supported, automated way to build wealth steadily over time. Want help calculating how much you should be contributing based on your goals? I can walk you through that next.