ADP 101: Everything About 401(k)s

As time passes by, focusing on your future becomes increasingly important. Creating a well thought-out plan can provide peace of mind and set you on the right path. Terry Town offers a 401(k) program that supports your journey in achieving your long-term financial goals. Continue reading to learn how to invest in your future and establish a retirement plan that will allow you to enjoy those well-deserved, work-free days down the road.

To learn more watch video or continue reading below.

Click here to watch informative video

What is a 401(k) plan?

The 401(k) plan gets its name from the Section of the U.S. Internal Revenue Code established in 1978. This retirement savings plan enables employees to set aside a portion of their salary into individual accounts. Contributions to a 401(k) are made with pre-tax dollars, meaning they reduce your taxable income for the year. Essentially, a 401(k) is a retirement savings plan that allows us to contribute a portion of our wages to an account that invests it to the stock market to grow its value over time.

Why should you enroll?

A 401(k) plan is an effective way to prepare for retirement and invest in your future. Due to the power of compound interest, your money grows over time, earning more through the stock market than if you would just set aside your money. This growth accelerates the longer your money remains invested, so the earlier you enroll, the more it can accumulate over time.

Benefits:

1. Saving Up: By putting some of your paycheck into this account, it sets aside money and helps you save it for later.

2. Tax Benefit: Because you're putting money into this account before paying taxes, you'll pay less in taxes. You will only pay taxes when you take the money out.

3. Growth: The money you invest into your 401(k) is invested in things like stocks or bonds, so it naturally grows over time. The longer you leave the money in, the more it can grow because of something called compound interest.

How to enroll?

Step 1: Log into your ADP Workforce account

Click Here for ADP Login Page

Step 2: Select Myself tab

Step 3: Select ADPTS Retirement Savings Plan Voya Financial

Step 4: Select Enroll Now or View Interactive Guide for more information

If you are interested in learning more about the Voya Financial 401(k) please email Terry Town Hall, townhall@terrytown.com.