3 Ways You Can Lose the Free Money of a 401(k) Match
The typical employer 401(k) match can give you about $1,680 extra per year based on Bureau of Labor Statistics averages for income and company matching percentages. Allowed to grow for a few decades, that money could easily end up worth tens of thousands of dollars. But it's not a guarantee. You may be eligible for a 401(k) match, but you need to avoid the following mistakes if you want to keep yours.
Most employer matches require you to put money in your 401(k) first. Then, your employer matches either all of your contributions if it's a dollar-for-dollar match, or a portion of them if it's a $0.50-on-the-dollar match, up to a certain percentage of your annual income. That means the real value of your match depends on how much you earn in a year and how much you contribute to your 401(k).
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Source Fool.com
