empts

Keep the Highest $1/2$

Employer$-$sponsored programs

nployer$-$Sponsored Retirement Programs

addition to pension plans, employers of all sizes offer supplemental plans. These plans are often voluntary and help employees to not only increase e amount of funds being held for retirement but also enjoy attractive tax benefits.

A thrift and savings plan has the employer contribute an amount equal to a proportion of the employee's contribution to the plan. If the plan is IRS qualified, $$ contributions and earnings aren't included in $q,$ until withdrawal. An employee's contribution is considered $$ taxable income. Thus, it is $$ income tax.

The salary reduction plan, $($a $401(k)$ plan$),$ gives employees the option to divert part of their salary to a company$-$sponsored, tax$-$sheltered savings account. In this way, the earnings diverted accumulate $q,$ tax free $.$ Because these contributions are made pretax, the amount necessary to fund a contribution is $$ by the contribution times the $q,$