Beginner’s Guide to Retirement Savings
Brought to you by Saij Elle. Learn what a 401(k) plan is, how it works, and its benefits. Explore retirement savings in simple terms.
What is a 401(k) Plan?
Employer-Sponsored
Retirement savings plan offered by employers to employees.
Pre-Tax Savings
Save money from your paycheck before taxes are applied.
Employer Match
Many employers contribute additional funds to boost savings.
Tax-Deferred
Investment earnings grow without tax until you withdraw funds.
Contribution Limits (2024)
Employee contribution limit
Catch-up contribution (age 50+)
Total combined limit (employee + employer)
IRS adjusts limits annually
$23,000
$7,500 extra
$69,000
Inflation based changes
Stay aware of yearly updates to maximize contributions efficientlyand also an awareness about What Is 401k Plan and How Does It Work.
Vesting Explained
What is Vesting?
Ownership of employer contributions over time.
Cliff Vesting
100% ownership after a set years (e.g., 3 years).
Graded Vesting
Ownership increases gradually yearly (e.g., 20%/year).
Investment Options
Mutual Funds
Diversified mix of stocks and bonds for balanced risk.
Target-Date Funds
Automatically adjust for your anticipated retirement year.
Stocks & Bonds
Direct investments with higher potential risk and reward.
Risk & Time
Choose options based on tolerance and retirement timeline.
Benefits of a 401(k) Plan
Tax Advantages
Save pre-tax and grow investments
tax-deferred.
Long-Term Growth
Compound interest builds wealth for retirement years. 4
Employer Match
Free additional contributions to boost savings.
Automatic Savings
Convenient payroll deductions make saving effortless.
How Saij Elle Can Help
Retirement Planning
Tailored strategies for individuals and businesses.
Contribution Advice
Optimizing how much and where to invest.
Investment Guidance
Helping select options fitting your goals and risk.
Get in Touch
Contact hello@saijelle.com for personalized support.