401(k) Retirement Savings Plan
The tax advantages, plus plan features and benefits, make a 401(k) plan an ideal way to help accumulate funds for your retirement. And Corebridge brings you the expertise, investment options and personal services to help keep things simple.
When you participate in your employer’s 401(k) plan with Corebridge, your contributions are made by convenient payroll reduction before federal income tax withholding is calculated. This helps reduce your currently taxable income, allowing you to save dollars for retirement that otherwise would have gone to pay income taxes.
Current federal income taxes on all contributions, interest and earnings in your 401(k) plan are deferred until withdrawal, usually at retirement. Tax-deferred earnings, coupled with the power of compounding, can provide greater growth than might be possible with currently taxable savings methods.
Remember that income taxes are payable when you withdraw money from your account. And since retirement accounts should be considered long-term investments, federal restrictions and a 10% federal early withdrawal tax penalty may apply to withdrawals prior to age 59½.
We offer an array of innovative investment options from well-known investment managers. This provides the flexibility you might need to design a unique program tailored to your individual needs. Keep in mind that investment values will fluctuate so that your investments, when withdrawn, may be worth more or less than the original cost. Bear in mind that investing involves risk including the possible loss of principal. Your financial professional can assist in choosing the options that will match your long-term goals.
Tax-free loans, available under some employer plans, enable you to borrow against a portion of your accumulated account value, subject to certain limitations, without permanently reducing your account balance. Remember that defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal tax penalty if you are under age 59½.
Access to your savings
Generally, depending on your employer’s plan, your account contributions can be distributed in any of the following events:
- Age 59½
- Severance from employment
- Your death or disability
- Financial hardship (employee contributions only)
Corebridge: Moving financial futures forward
At Corebridge Financial, we believe everyone deserves financial confidence. We're helping people take action toward their future goals with our broad suite of retirement solutions and insurance products. Every day, we work hard to make it possible for more people to take action in their financial lives—because action is the bridge from planning to outcomes, from today’s financial needs to tomorrow’s aspirations. To determine if your retirement savings are on track to meet your needs, or for more information about your retirement plan, call your financial professional.
This material is general in nature, was developed for educational use only, and is not intended to provide ﬁnancial, legal, ﬁduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your ﬁnancial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.
Securities and investment advisory services oﬀered through VALIC Financial Advisors, Inc., member FINRA, SIPC and an SEC-registered investment adviser. Annuities are issued by The Variable Annuity Life Insurance Company, Houston, TX. Variable annuities are distributed by Corebridge Capital Services, Inc., member FINRA. All companies above are wholly owned subsidiaries of Corebridge Financial, Inc. Corebridge Retirement Services, Corebridge Financial and Corebridge are marketing names used by these companies.
RO2704788 - 07/2023