Take Advantage of Matching Contributions to Your Retirement Account

Take Advantage of Matching Contributions to Your Retirement Account

Matching Contributions

Many retirement plans include a matching contribution from your employer. Matching contributions vary from plan to plan, but the match is often a percentage of the amount you contribute, up to a set maximum. These contributions offer many advantages. They don’t reduce your personal contribution limits, they grow tax-free while in the plan, and they are taxable only when withdrawn from the plan.

How to Participate

If your employer offers a match, start contributing! That is all you have to do to get these free contributions. Consider contributing enough to get the maximum matching contribution offered. If you don’t, it is like leaving money on the table.

Matching Contribution Example

Jeff contributes 5% of his $30,000 annual salary, or $1,500, to his company’s retirement plan. His employer matches 50% of his contributions up to 5% of his salary.
($1,500 x .5) + $1,500 = $2,250 annually to retirement account

Log in to your account to see if your employer offers matching contributions. If so, consider contributing enough to get the maximum match.

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