Employer Match, a Great Benefit

Always take advantage of an employer-offered 401(k) match.

It’s rare to receive free money, but that’s what a 401(k) match from an employer is. A “match” is when an employer contributes money to your 401(k) account when you put money into it from your paycheck.

An employer’s match is a percentage of what you contribute to your 401(k). The more money you put into your account, the more match you’ll get. An employer match varies from company to company.

 Bear in mind, employers are not required to offer a 401(k) contribution match. However, many employers do match a portion of their employees’ contributions. It’s common for an employer to require an employee to work for a certain time period before being able to keep matched contributions. This is called “vesting.”

Impact of your employer's match*

** This illustration is a hypothetical compounding example that assumes biweekly deferrals (for 30 years) at a 7% annual effective rate of return. It illustrates the principle of time and compounding. It is not intended to predict or project the investment results of any specific investment. Investment returns are not guaranteed and will vary depending on investments and market experience. If fees, taxes, and expenses were reflected, the hypothetical returns would be less.

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