Retirement Planning

How To Get 100% Of Your 401(k) Match

How To Get 100% Of Your 401(k) Match

Earlier this year we talked about investment options if you're already making the maximum contribution(s) to your 401(k) and still want to save money elsewhere. We also covered the importance of contributing to your employer's 401(k) plan in order to get the full matching contribution…aka compensation.

Today we're talking 401(k) again and I want to show you why it's important to understand how your employer matches your contributions.

Financial Planning: Changing Course

ecently Jill & I took a quick trip to surprise her mom and this required us to fly down to Miami. As we boarded the plane, I peeked into the cockpit. The pilots were in there, doing their pre-flight checks. We moved on down the aisle, took our seats, and prepared for takeoff.

For us, getting to Miami was as simple as booking tickets, boarding the plane, and buckling up. The pilots had a little more on their plate.

What Is A 401(k) Match?

Most of you reading this likely contribute to your employer's 401(k) plan. And a good percentage of you also receive matching contributions from your employer. Or if you own your own business, you might contribute to and also be responsible for the matching contributions. I imagine you've heard these employer matching contributions referred to as "free money". Sure, we can call it that and if it feels good, do it. If you aren't taking advantage of your company's match…