Understanding 401(k) Matching: How it Operates and What Constitutes a Favorable Match

If you are employed by a company that offers a 401(k) plan, congratulations! As of 2020, approximately 60 million Americans participated in roughly 600,000 company retirement plans. According to the Investment Company Institute, as of the end of June 2021, there were about $7.3 trillion in assets invested in 401(k) plans.

Despite the effects of the economic crisis, the Great Recession, and the COVID-19 pandemic, retirement plans, especially 401(k)s, managed to stay the course. However, things are not getting better with each passing year, which means you may be wondering how your plan compares with other company plans.

You may have certain questions when it comes to your retirement plan. For example, are you missing out on free retirement money because you are not working for the company down the road? Keep reading to learn more about how 401(k)s work, company matches, and how to manage your plan.

Key Takeaways

The 401(k) plan is an…

2023-05-13 14:50:00
Original from www.investopedia.com