SALT LAKE CITY — It's open enrollment season for many workers, making it the perfect time to review all your workplace benefits to ensure you're maximizing what's available to you.
One area you should investigate is whether your employer offers a 401(k) match program. This retirement savings plan allows you to make payroll deductions into an account, and your employer may match a percentage of your contributions.
Dave Nellis with America First Credit Union says participating in this program is essential not only for your long-term financial goals but because it's essentially extra money your employer is giving you.
"Anytime you have an employer-sponsored retirement plan, get in on it," he said. "A 401k, that's free money that your employer's gonna put towards you if they have matching.”
Financial Engines, an investment advisory firm, conducted a study showing an estimated $24 billion was left unclaimed from employer 401(k) matches every year.
To make sure you're taking advantage of your 401(k), read your plan's summary to see what your employer offers. Look at the match structure as well as the vesting timeline.
“That's free money, and so I would always put money there first if you're getting some matching," Nellis said.
If you have questions or need help understanding how your plan works, ask for assistance. Your human resource director can help you, as well as the plan administrator.
Don't wait on this decision. It's a simple way to earn free money and save smarter.
