What is a 401(k)?
A 401(k) is an employer-sponsored qualified retirement plan, which offers employees a variety of investment options. Employees can contribute to the plan through payroll deduction (or deferral). These contributions are tax-sheltered until withdrawn at retirement.*

Because there is a limit to what you can contribute annually to a 401(k), you can't make up lost ground with large, last-minute contributions. So the earlier you start contributing, the greater the potential for having the retirement you've always dreamed about.

Why would I want it?
Because you want to live comfortably in retirement and Social Security will probably not provide you with enough income to do so. A 401(k) -- with its potential for long term investment growth -- may provide an easier way to save for retirement.

In addition to quality investment options and employer contribution match (if available), you get tax advantages. You contribute to your account with pre-tax dollars. This lowers your taxable income. At the same time, your investment is tax-deferred, which means no taxes are paid until you make withdrawals.*

* Withdrawals of taxable amounts will be subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% IRS tax penalty may apply.

For plan sponsors. If you are a business owner, providing a 401(k) can be a great incentive for attracting and retaining top employees.

Go to http://www.jhrps.com/us/ for more information on how our group pensions products offer a strong foundation for your qualified retirement plan needs.