Employer-Sponsored 401(k): Who Qualifies and What You Get
Learn how employer-sponsored 401(k) plans work, including how employer matching benefits your retirement savings.
An employer-sponsored 401(k) is a retirement savings plan offered by your company that allows you to set aside money for your future.
Who it's for
This scheme is available to employees who work for companies that offer these types of retirement plans.
What you get
You get a way to save money for retirement with tax advantages. Many employers also provide a "company match," which means they contribute extra money into your account based on how much you save yourself.
What it costs you
The cost is a portion of your salary. You decide what percentage of your pay you want to have taken out and put into the plan.
The catch to know
If your company offers a match and you do not contribute enough to receive the full amount, you are leaving free money on the table.
How to apply
- Check with your employer to see if they offer a retirement plan.
- Determine what percentage of your salary you want to contribute.
- Contact your company's HR department or plan administrator to set up your account.