What is a 401k Match?
A 401k match is one of the biggest reasons you need to take advantage of these accounts and contribute, even a very small amount, of your income. It’s also a big thing that comes up when you’re comparing 401k vs IRA accounts for retirement savings. This match is where your employer offers to match the contribution you make to your retirement account up to a certain percentage. So, if you contribute one percent of your income (for example) they offer to also contribute that amount of money to your savings. This is a benefit of your employment and money you won’t be getting elsewhere, so it’s important to take advantage of it. It may not seem like much, but it adds up, and you have to remember that money will be invested to earn you more over time.
