Is Watco’s 401(k) Benefit a Good Option for You?

It might be hard to imagine starting a retirement savings account just now, with prices at record highs and some investment asset values on the low side. Still, team members can keep in mind the opportunity to set aside money for the future using a rewarding company benefit: a 401(k) retirement account.

It can be an enticing idea for a couple of reasons. For any amount you elect to contribute, Watco matches 50 cents for every dollar up to 10 percent of your compensation. You can start a 401(k) at any time, with a percentage of income or a flat dollar amount per paycheck. You can even open an account, and stop the regular deposits whenever you want, then pick those deposits back up when the time is right.

“Investing in Watco’s 401(k) plan is a great way to save for your retirement, especially with the Watco company match,” said Brenda Antle, senior benefits specialist. “We understand personal financial situations are constantly changing and you may not always be able to contribute as much as you’d like or not at all sometimes. The great thing about the Watco plan is you can change, stop, or restart your contribution rate at any time.”

Watco offers both the Roth and traditional 401(k) retirement plans. A Roth 401(k) allows you to make after-tax contributions and then get tax-free withdrawals when you retire if you meet certain conditions. A traditional 401(k) allows pre-tax contributions and the withdrawals in retirement are taxable.

When it comes to a 401(k), every little bit helps. Let’s use a hypothetical example. John is 40 years old and makes $55,000 a year. If he starts a 401(k) today and designates 3% of his paycheck to be saved there, he can end up with quite a sum in 25 years (see diagram below).

7% annual rate of return

Watco’s Match: 1.5% John’s Contribution: 3%

2022-2047 (25 years) $167,499