Vertrue Incorporated Helps People Find Virtue in 401(k) Plans During Rocky Economic Times

Vertrue, a Premier Online Marketer, Champions 401(k) Benefits

Norwalk, Conn. (PRWEB) November 3, 2008 -- Vertrue Incorporated (http://www.vertrue.com/gary-johnson.asp), one of the nation's top consumer services marketing companies, encourages consumers to invest in the future, by offering some insights into the many benefits of 401(k) plans.

As critical as 401(k) plans have become -- even in such rocky economic times -- formal retirement savings programs have only existed for about 25 years. The Internal Revenue Service (IRS) created something called cash or deferred arrangements (CODAs) in 1978, but it wasn't until 1981 that the IRS proposed regulations to create actual 401(k) retirement plans (which are named after a section of the tax code).

We take them for granted today, but many generations of American workers never had an official retirement plan -- especially not through their respective employers.

That's why, today, Vertrue (http://www.vertrueco.com/) wants to let people know how valuable a 401(k) plan can be. The money that's put away now can -- and should -- make a difference down the road.

- Live the Life of Riley. One day, we may all aspire to what's often known as the "Life of Riley." Even though the term is actually taken from the title character of a 1940s radio show (who lived a relaxing, worry-free life), it would be nice to be worry-free. It'll probably take most of us a (hard-working) lifetime to reach "Riley" status, but remember that the balance in 401(k) plans grows as financial contributions are made (by both employee and employer alike). While most people contribute less than 10% of their salaries, no one can contribute more than $15,500 annually into a 401(k) plan. (And that applies whether a person's salary is $50,000 or $1 million annually.)

- Filter out the feds. Perhaps the best rule about 401(k)s is that all the money contributed to each plan comes from pre-tax income, so federal income tax dollars aren't a factor. That means that the then-current tax burden is reduced and net take-home pay is increased. Of course, when it's time to retire and the money is withdrawn, taxes must be paid. But by then (whenever "then" is), there's a chance to change tax brackets. In any event, the tax reduction -- when the contribution is made -- means more cash flow.

- Three cheers for the company. There's no denying that employees benefit greatly from an employer's matching 401(k) contributions. If, for example, the company "matches" (i.e., makes a dollar-for-dollar contribution) up to 5% of an employee salary, employees contributing less than 5% of their salaries aren't getting the full company benefit.

- Age before beauty? For employees over age 50, the federal government allows them to contribute up to $20,500 per year into a 401(k) retirement plan -- $5,000 dollars more than their younger co-workers.

When it comes to making life a little better every day -- from having fun to saving money to learning important financial tips -- count on Vertrue (https://www.ultirecruit.com/VER1003/jobboard/listjobs.aspx?Page=Browse).

About Vertrue Incorporated (http://www.prweb.com/releases/Vertrue_Incorporated/Vertrue/prweb751004.htm)

Headquartered in Norwalk, Conn., Vertrue Incorporated (http://goodworks.vertrue.com/) is a leading Internet marketing services company and premier marketing partner to corporate clients. Vertrue, through its various subsidiaries, gives consumers access to services that offer substantial discounts and convenience for important decisions in their everyday lives. The services offered by the Vertrue family of companies span healthcare, personal property, security/insurance, discounts and personals and are offered online through an array of marketing channels. Partners can enhance market presence, strengthen customer affinity and generate additional value through programs offered by subsidiaries of Vertrue.

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