Saving for retirement complex and grow your employer matching retirement plan

Saving for retirement complex and grow your employer matching retirement plan

If your employer offers matching contributions to your retirement plan, basic rule: whatever the employer contribution to the game even if your contribution is dollars to match the dollar.

Imagine deposit $ 1,000 of your money in the Bank, but instead of getting a toaster fiddling, you receive an additional $ 1,000 to go along with your deposit. To add to the fun, imagine a discount deposit your taxes and not having to pay tax on the “gift”. Furthermore, grow your $ 1,000 and donated $ 1,000 (it is hoped), and you don’t have to pay income tax on the interest, dividends or capital gains appreciation until you withdraw the money. When you withdraw money, you will have to pay taxes, but you will gain interest and dividends and appreciation at the same time.

This is employer matching contributions to retirement plans everything. If your employer matches employee contributions, and provides 100% return on investment in one day (assuming the application is early withdrawal penalties, and is unique to the funds exactly).

Over the years, I have heard hundreds of excuses for not taking advantage of employer matching plan. All of these reasons can be summarized in two words: ignorance and neglect. If you didn’t know it before, you know now. If you don’t currently take out plan match your employer, run-don’t walk-to be responsible for the plan and begin the paperwork to take advantage of the employer match.

Matching contributions are most common within the 401k, 403b and 457 plans. Even if your employer is willing to conduct a partial matching to ceiling only, still must take advantage of this opportunity.

A joint agreement to some extent is that the employer will contribute 50 cents for every dollar up to the first 6 percent of salary you can contribute. No Bell are insufficient or not worth it. You have everything to win this free money which will increase and grow-as Einstein, “the most powerful force in the universe is compound interest.”