401(k) matching is “free money” for retirement savings, according to financial experts. Employers augment your 401(k) contributions and boost your retirement savings with this plan.
Saving, 401K, IRA (Photo: Google)
What is 401(k) matching, and how does my employer decide how much to contribute?
In jobs with 401(k) matching, employers contribute a certain amount to your account in addition to your contributions.
Is 401(k) matching earnings limited?
Employers typically base their contribution on a percentage of your contributions, often up to a specific salary portion or sometimes up to a set dollar amount.
Which companies offer 401(k) matching?
Most medium- to large-sized companies offer 401(k) matching, and there is a cap on employee contributions, set at $22,500 for 2023 and $23,000 for 2024.
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What if the employer doesn’t give?
Look into other ways to save for retirement, such as an Individual Retirement Account (IRA) or a Solo 401(k) for people who are self-employed and can contribute up to $66,000 in 2023.
These choices don’t come with employer-matched funds, but they give you choices. Sun Jobs has three good job options that will help you save money for your 401(k).
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