> Would you ever turn down free money? Many employers offer free money just for participating in their 401(k) plan by matching a portion of your contributions.
Let’s say you earn $50,000 a year and your employer matches 50% of your contribution up to 6% of your income. If you contribute 6% of your salary ($3,000), your employer will kick in $1,500 more. That $1,500 is like free money toward your retirement.