The benefits of a workplace plan
The Irell & Manella retirement plan offers a powerful way to save for the future.
Save more by taking advantage of your retirement plan
You can contribute to the plan through convenient, automatic payroll deductions. You have a variety of investment options to choose from, including a self-directed brokerage account. Take a look at the benefits:
1. Convenient automatic deductions
You decide how much to put in the plan, and your employer takes it directly from your paycheck.
2. Consistent savings
You’re more likely to keep saving on a steady basis when you don’t have to think about it or take action with each paycheck. (You may want to increase your savings when you get a pay increase or extra cash.)
3. Reduce taxable income
You can make pretax and/or Roth contributions to the plan. Pretax contributions are made before applying income taxes, which reduces your taxable income.
Roth contributions are also available, but do not reduce your current income taxes.
4. Tax-deferred growth
Your savings, plus any match and any earnings on your investment, will grow tax-deferred. You won’t pay taxes on pretax contributions until you withdraw money from the plan.1 If you wait until retirement to take the money out, your tax rate may be lower. Roth contributions also benefit from tax-deferred growth, and distributions are tax free if your Roth account has been in place for five years from the year of the first contribution and the distribution is made for one of the following reasons: attainment of age 59½, disability, or death2.
1 Withdrawals before age 59 ½ may be subject to a 10% federal tax penalty.
2 If the distribution conditions are not met, the earnings may be taxable and may be subject to a 10% early distribution
penalty on the taxable portion of the distribution.
