Here's how much money you give up if you don't grab your employer's 401(k) match investinyou (In partnership with acorns.)
And, whether you contribute to a traditional or Roth 401, the company's match always goes into the former and is not taxable compensation. Also, employer contributions do not count toward the contribution maximums.
"Even if you don't think you'll be there long enough to be fully vested, even a 20% or 40% vested match is free money," Smith said. If you were to do that five years in a row, with your salary increasing 2% yearly, your account would be worth roughly $69,000 in 30 years. Ten years in a row? The account would hit $202,300 in three decades. And the amount that came from the employer match would be $89,900 — 44% — of it.
If you're already feeling financially squeezed, experts say, it may be hard to imagine parting with any more of your paycheck even when it would be money waiting for you when you retire.
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