Since October is National Retirement Security I thought I would share 5 ways how to show your 401(k) some love and spread the retirement security all around:
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Enroll! A study from T. Rowe Price showed that among those making $25,000 or less, 401(k) participants saved 10 times more on average than peers without access to a plan and 20 times more than those who have access to a 401(k) but choose not to participate.
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Take full advantage of any company match. Not doing so leaves money on the table!
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Find out how long until you’re fully vested in your contributions. Most companies require you to stay 5 or 6 years before you get to keep all of those matching contributions. Staying that extra one to two years can potentially add thousands toward your retirement.
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Don’t withdraw early! Withdrawing before the age of 59.5, will incur a 10% early penalty plus the income tax on the withdrawal.
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Apply to the 401(k) Champion® Award! This is the only type of award that celebrates 401(k) participants who optimize their 401(k)s and encourages others to do the same. Winners can win up to $1,000! Apply at https://401kchampion.com/
