3 Helpful 401(k) Strategies to Employ During a Recession
We're in a recession. That may not be news to you, seeing as how unemployment is still through the roof, but it could impact the way you approach your 401(k) plan. Here are a few strategies it pays to employ during the latter part of 2020, especially as our economy remains sluggish.
When recessions strike, employers tend to cut corners in an effort to save themselves money, and that could mean taking away the 401(k) match they normally offer to those who participate in their retirement plans. But if your employer match is still in play, then it definitely pays to take advantage of it, especially if your income is holding steady.
For the current year, you can contribute up to $19,500 to a 401(k) if you're under 50, or up to $26,000 if you're 50 or older, but to snag your full match, you generally won't need to come close to maxing out. Make sure you understand what contribution on your part it will take to claim your match so that you don't pass up free money at a time when it could really come in handy.
Source Fool.com
