To illustrate how a 401(k) plan can work for you, look at the results with and without a plan:
  (Assume an individual - age 35 in a 25% tax bracket and $1,200.00 savings contribution
  per year).

Without a
401(k) Plan

With a
401(k) Plan

Income Tax
(Amount Witheld)

Net Amount for Retirement Savings
(Total)

Assumed Investments Return

Net Rate of Return
(After - Tax)

Net Earnings per Year

Accumulated Value at Age 65

$ 
 

$ 

$ 

       
  1,200.00
        

               300.00
     

  900.00
    

   7.50%

  5.25%
   

                 47.25

          65,704.00

$
 

$ 

$

   
1,200.00
 

                   0.00
   

1,200.00
  

7.50%

7.50%
  

                 90.00

       134,744.00