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?
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Julie Carter, Recruiter.🧐 Coach.💪🏾 Mother.🙋🏾♀️🙋🏾♂️🐕 Professional.👩🏾💻 Wife.💍 Imperfect. 🙃Living to inspire so you may inspire to live.🤝🏾 You ARE NOT alone!🤗
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