WHY IT IS IMPORTANT: Employee matching allows you to maximize the funding that your employer gives you for putting money away in a retirement account (e.g., 403B or 401K). Employer match programs give you a percentage of your salary (free money) when you save a percentage of your salary. EXAMPLE: Your $50,000 salary would be taxed at 47,500 because you put $2500 away before your salary was taxed. EXAMPLE: You make $50,000 a year before taxes and your employer’s program gives you 5%. This means you would have to commit to $2500 (5% of $50,000) before your employer would “match” your $2500 (5%). Because employer retirement programs tend to be pre-taxed. This means that your income is viewed as less and therefore taxed as such. KEY POINT(S): Employer match programs are FREE MONEY! And requires you to commit a portion of your salary before you’re eligible for this free money. Employer match programs typically lower your taxable income. There is typically a period of time you must wait before (you’re vested) you have 100% access to employer contributions. MY EXPERIENCE: In the name of 300-word limits, I have always enrolled in employer match programs, typically at the minimum percentage to qualify. I currently auto increase my contributions to 1% on my birthday. Every little bit counts. QUESTIONS FOR YOU: Can you afford to contribute to your employer match program? Are you auto-increasing your contributions? NEXT STEPS:
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AuthorJulie Carter, Recruiter.🧐 Coach.💪🏾 Mother.🙋🏾♀️🙋🏾♂️🐕 Professional.👩🏾💻 Wife.💍 Imperfect. 🙃Living to inspire so you may inspire to live.🤝🏾 You ARE NOT alone!🤗 Disclaimer: Views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee or other group or individual. The Content is not intended to be a substitute for legal, professional, or medical advice, diagnosis, or treatment.
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