Retirement Hacks: The 4 burning questions you must ask on 401(k) day

by | Sep 9, 2022 | Stock Market

A 401(k) or similar employer-sponsored retirement account can make saving for the future a lot easier, and effective — if you’re doing it right.  Retirement Tip of the Week: If you have a 401(k) plan (or something like it at work), or if you have access to one, ask yourself a few important questions to ensure you’re maximizing its potential. If you don’t know the answers, find them. 

Access to a 401(k) plan, or a retirement account like it such as the 403(b) or 457 plan depending on your line of work, is a privilege, as not all U.S. workers have access to these benefits. And not everyone who does have access participates in one, perhaps because they haven’t signed up, don’t know what benefits they’re offered or they can’t afford to contribute at the moment.  Still, the potential advantages of these accounts shouldn’t be understated. Employer-sponsored retirement accounts are tax-deferred, which means contributions are made with pretax earnings, and many employers offer automatic contributions right from a worker’s earnings, so they never see the money “missing” from their paychecks. Some companies are even offering auto-escalation, so that every year the amount a person contributes increases incr …

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