Are you contributing to your group retirement savings plan? Smart move! But did you know that your employer can also make contributions in your name?
For example, if under your plan, your employer is required to contribute 50% of your own contribution, it could mean that…
If you put $50 a week into the plan, your employer contributes another $25.
By the end of the year, your employer’s contributions could add up to $1,300.
It’s like getting a 50% return right from the get-go.
Over the long term, say 25 years, you’ll have accumulated an extra $32,500. And that’s not even counting the return on your investment.
That’s a nice little boost for the future!
And don’t forget that your own contributions are tax-deductible.
Say your marginal tax rate is 30%. You get a $15 tax break on each $50 weekly contribution, so you’re only really paying $35.
Are you going to leave money on the table? Find out how to get the most out of your employer’s plan.