Contributed by: Edward Jones - Lee Van Pelt

Your 401(k) is a great way to build retirement savings. But how can you take full advantage of your plan?

First, contribute as much as you can each year – at least enough to earn your employer’s match, if one is offered.

Also, consider the Roth 401(k) option, if one is available. There's no immediate tax break like with a traditional 401(k), but withdrawals of earnings and contributions are generally tax-free if you are at least 59½ and have held the account for five years. Consult your tax advisor to determine what's appropriate for you.

Whichever 401(k) you choose, make sure the investment mix fits your goals and risk tolerance. Early in your career, you may invest more aggressively. As retirement nears, consider a more conservative portfolio.

Finally, avoid borrowing from your 401(k) or taking early withdrawals – you may incur taxes and penalties and have less money for retirement.

Following these moves can help ensure your 401(k) is a key contributor to your retirement income.

This content was provided by Edward Jones for use by Lee Van Pelt, your Edward Jones financial advisor at (541) 756-0854 edwardjones.com/lee-vanpelt. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Member SIPC