At age 45, skipping your 401(k) match means giving up more than your employer’s contribution. You also lose the potential investment growth this money could earn over the next 20 years. Depending on the size of the match and the investment-return assumptions used, that could leave you with almost $115,000 less by retirement.
How 401(k) Employer Matches Are Calculated
Your employer’s matching formula determines how much the company contributes and the amount you need to put into your 401(k) to receive the full amount. For example, if you earn $70,000 and your employer offers a dollar-for-dollar match up to 4% of salary, the maximum employer…
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