Get Free Money

A 401K retirement account contribution match is free money.

Some employers will partially or fully match employees' 401K contribution up to a specified cap amount.  For example, an employer might match up to 50% or 100% of an employee's contribution up to 6% of the employee's salary.   Effectively, the employee is immediately getting a guaranteed 50% or 100% gain on their contribution.   A different, but similar perspective, is that the match is an immediate 3 to 6% raise.

IMHO, an employer match is a feature that should be used in retirement planning whenever it is available.  Doing so is a smart practice of personal finance.

For more on The Practice of Personal Finance, check back every  Wednesday for a new segment.

This is not financial nor retirement  contribution advice. Please consult a professional advisor.

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