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UNDERSTAND YOUR PLAN


Your employer-sponsored retirement plan is a powerful way to save for the future. It is offered by your employer and designed to help you invest regularly for your retirement. Traditionally your contributions are taken directly from your salary before it is taxed and can be distributed among a selection of investment options. Some employers do offer a Roth option, which allows you to make after-tax contributions.

Benefits

An employer-sponsored retirement plan offers a number of benefits, including:

  • Convenience of automatic payroll deduction
  • Consistent savings
  • Tax-deferred growth
  • Reduced taxable income
  • Employer-matched contributions 1

Automatic Savings Plan

Once you're eligible to participate and have completed the necessary forms, the amount you designate as a deduction will be automatically withdrawn from your paycheck and contributed to your employer-sponsored retirement plan. Be sure to check with your employer for your specific plan enrollment requirements.

Tax laws do limit the maximum contributions that can be excluded from your salary.

Tax Savings

Your employer-sponsored retirement plan contributions are deducted from your salary before taxes, which reduces your taxable income and the amount of tax due on that income. Any contributions made to your plan — your contributions, employer-matched contributions and any investment returns — will be allowed to grow tax-deferred. This means you do not pay taxes on that money until it is withdrawn.2

Any money distributed or withdrawn from the plan is taxed as ordinary income. If that happens during your retirement, you may fall into a lower tax bracket and may pay less tax on the money withdrawn.

Company Match

Your employer may match some or all of your contributions, adding to your savings and potential for accumulation. Each company and plan is different, so be sure to check with your employer for your specific plan details on matched contributions.

Tomorrow's Plan Begins Today

Investing in an employer-sponsored retirement plan is a convenient way to begin securing your future. Take advantage of the opportunity today.

1Your employer may match some or all of your contributions. Check with your employer for your specific plan details on matched contributions.

2Any withdrawals taken prior to age 59½ may be subject to a 10% federal tax penalty.

LCN-766786-111413



Hello future.
Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance
company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN,
and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products
distributed by broker/dealer-affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities
and investment advisory services offered through other affiliates. Explore Lincoln.



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