Financial Wellness Minute: Saving for Retirement

Get smarter about your money with this Financial Wellness Minute. No matter what age you are, it is vital that you save for retirement. Two typical ways to do this is through a 401(k) or a Roth 401(k) through your employer.

• A 401(k) is a retirement savings plan offered by employers that allows employees to contribute a portion of their salary pre-tax, reducing your immediate tax burden. The funds in a 401(k) account grow tax-free until withdrawal, typically at retirement.
• A Roth 401(k), on the other hand, allows employees to make contributions with after-tax dollars, meaning taxes are paid upfront. The advantage of a Roth is that withdrawals in retirement are tax-free, including any investment gains.

Make sure you're taking advantage of any employer matching contributions, as this is essentially "free money" towards your retirement. Consider consulting with a financial advisor to explore the best options based on your specific circumstances. Want to know more or have a weekly financial wellness tip sent to you? Sign up at mmfcu.org or contact your local Mid Minnesota Federal Credit Union Office. Mid Minnesota Federal Credit Union is federally insured by the NCUA and we are an equal housing lender.