Tip of the Month | March 2025
Take Advantage of Your Full Employer 401(k) Match
Written By: Ryan Rink, CFP®, EA, ChFC®, CLTC®
Taking advantage of your employer’s 401(k) match is crucial because it’s essentially “free money” that boosts your retirement savings.
Example) If you earn $100,000 and your company offers a 100% match on 401(k) contributions up to 5% of your salary, contributing 5% means you put in $5,000 and your employer matches that with another $5,000, doubling your savings. Over 30 years, assuming a 7% annual return, this could grow to over $1 million.
If you don’t contribute enough to get the full match, you could be leaving significant money on the table and will miss out on compound growth. This can make a substantial difference in your long-term retirement plan. Review your current 401(k) plan to ensure you are getting the most out of your employer match.