Get Started With Your 401k Plan
Since your employer offers a 401k retirement plan, consider participating as soon as possible.
Not only does this give you more time to invest and take advantage of compounding interest, but many employers match contributions up to a certain amount. For example, some match 50 cents for every dollar invested, up to 6 − 7% of your salary. Ask your employer for details about your plan.
Keep in mind that the employer match may be subject to a vesting schedule. Withdrawals are taxed as ordinary income and, if taken prior to age 59½, they may be subject to a 10% penalty. Investing is subject to market risk, including possible loss of principal.
Retirement plan company match – a valuable benefit
Starting now is a great idea – especially if your employer matches a portion of your contributions. If you don't, you could be missing out on free money. If you don’t contribute, neither does your employer so that potential benefit is left on the table. Not getting your company’s matching contribution is like volunteering to take a cut in benefits.
It’s never too early to plan for retirement. Contact your company’s retirement plan representative to see how you can get started. Prepare to ask questions about plan features.
Use tools and calculators to to see how much you’ll need in retirement and how your contributions could build.