401(k) and 403 (b) Plans

Salary reduction plan
- - pay no state or
federal income tax on
the amount deferred.

The employer deducts
2% to 10% percent of
your salary according to
your wishes.

May invest in:
Stock funds
Bond funds
Index funds

Pay taxes when you
make withdrawals at
retirement.

Pays out in a
Lump sum or
Monthly withdrawal
Penalty for early withdrawal.

Ask your human
resources office for
information.