This 401 (k) Error Can Cost US Average US $ 333,000 | Personal Finance

  This 401 (k) Error Can Cost US Average US $ 333,000 |  Personal Finance

Now, your salary may be lower than average for some years of your career, so your match may not be that high every year. Or it could be higher in some years, so you’d miss out on even more money by forgoing your employer matching funds.

It may take some sacrifice, but remember, you also get a tax deduction, in addition to plenty of other benefits, for your contributions, and you can have them withdrawn directly from your paycheck, so investing enough to earn the full employer match may be easier than you think. Don’t make the mistake of missing out if there’s a way you can make it happen.

Story Highlights

  • To ensure you get your full match, ask your employer what the rules are where you work. If you get a 100% match, for example, you would need to invest at least $2,994.97 to earn that same match if your earnings were average — but if you get a 50% match, you’d need to set aside $5,989.94 to get the full amount from your company.

  • But the bottom line is, whatever the amount that you get from your employer, the contributions your company makes will grow exponentially over time and could be worth much more than you might imagine by retirement age. You can’t afford to pass up this free money since it could make all the difference in helping you achieve financial security as a retiree.