All articles tagged with #employer match
Originally Published 1 year ago — by The Motley Fool
Taking full advantage of employer 401(k) matching contributions can significantly boost retirement savings, potentially adding over $500,000 to your 401(k) balance over a career. Even partial matches can grow substantially over time, making it crucial to review and maximize your contributions annually.
Originally Published 2 years ago — by CNBC
More employers are offering Roth 401(k) options in their retirement plans, with 89.1% of employers allowing workers to contribute to a Roth account in 2022, up from 58.2% in 2013. However, only 21% of workers are taking advantage of this option, with 72% still saving in a traditional pre-tax account. The recently passed retirement law, Secure 2.0, is expected to increase Roth uptake by requiring catch-up contributions to be made to Roth accounts for high-income workers. Employers are also starting to offer their company match in a Roth account. Financial advisors recommend considering Roth contributions for investors in a lower tax bracket now than in retirement, and for young workers with their highest-earning years ahead. Roth savings also have additional benefits, such as avoiding required minimum distributions and reducing Medicare Part B premiums.
Originally Published 2 years ago — by CNBC
A CNBC survey has found that 74% of Americans are feeling financially stressed, with 37% indicating high levels of stress. This financial strain is impacting retirement savings, as 41% of workers with a 401(k) or employer-sponsored plan do not contribute any money. Among those who are contributing, the majority are saving as much as they can afford or up to their employer's match. However, 46% of respondents do not know what investments are in their 401(k), and 56% admit they are not on track with their yearly savings for a comfortable retirement. Financial advisors recommend prioritizing employer matches, building an emergency fund, and paying off high-interest debt to improve financial security.