Many companies contribute to their employees 401k by matching their contributions, but employees are missing out on the chance.
These contributions do max out though, but if you take full advantage of the dollar for dollar match, a salary of $60,000 can result in $3,600 being deposited into the fund.
17.5 million Americans are estimated to be missing out on this perk. By not taking full advantage, they’re losing out on a part of their salary.
By contributing as soon as you can, it allows your money to have more time to grow before retirement.
The contributing money, that you get back later in life, is also untaxed when it goes into the 401k.
Employers will match contributions during each pay period instead of yearly based on salary. This way if you get a raise it’s properly matched.
This also works so if for any reason one month you don’t make a match, your employer also won’t make a match.
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