How Do I Take Advantage Of My Employer’s Retirement Plan?
How do I take advantage of my employer’s retirement plan?Should I save through my employer’s retirement plan?Can I save outside of my retirement plan?
If you find yourself working for a company that has a retirement savings plan it is in your best interest to take full advantage of the program. Many employers will match a certain percentage of your deposits which increases your retirement savings considerably. These retirement plans are a benefit of your employment and you should utilize them to the fullest. Most employers’ carry the burden of paying the maintenance fees on these types of accounts, so you are able to invest in your future fee-free.
Should I save through my employer’s retirement plan?
Yes! If you can invest the maximum amount each pay into your retirement plan you will be well on your way to a comfortable retirement. These retirement plans are designed to benefit the employee and it is foolish not to take full advantage of the service. When you begin to invest into your retirement talk with the HR representative to make sure that your contributions are not exceeding the yearly limits IRS rules limit the amount you can invest each year. Many employers will match or add additional funds to your retirement plan as an extra incentive. This allows you to save more money for retirement and the money becomes available to you after a certain number of years of employment.
Can I save outside of my employers retirement plan?
You may invest into IRA’s outside of your employers’ 401k plan if you stay within the limits set forth by the IRS. If you over invest you will be subject to penalties and additional taxes. The safest way to invest outside of your employer is to consult a financial advisor on what you need to secure your future and avoid penalties.
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