11 Worrying 401(K) Mistakes That Will Derail Your Retirement Plans

Ignore Matching Contributions

There’s a reason why various companies try to win over new employees with generous benefits packages, and one of the biggest perks they could offer are bigger matching contributions. These are different all across the board, so it’s important for you to know how your employer plans on matching your contributions.

For example, one employer might watch 50% of your contribution up to 8% of your salary while another might match 100% of your contributions up to 5% of your salary. By ignoring these you’ll essentially ignore free money.

If, for example, your annual salary at a company sits at $50,000, if your employee offers to match half of your contributions up to 6% of your salary, you could stand to gain $1,500 in what is essentially free money!

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