Can You Guess Which Workers Are Least Likely to Participate in a 401(k)?

Can You Guess Which Workers Are Least Likely to Participate in a 401(k)?

The 401(k) is perhaps the most powerful retirement savings tool available to American workers. You can save huge sums of money in it -- up to $18,000 per year if you're under age 50, or $24,000 if you're 50 or older -- and you'll get some generous tax break for doing so. And assuming you like free money, most employers that offer 401(k)s will also match a portion of their employees contributions.

On top of all that, saving in a 401(k) is easy as can be. Just tell the person in charge of payroll how much of your wages you want to go into the account, then sit back and watch your savings grow with every paycheck.

Despite all those perks, only 41% of workers who are offered a 401(k) make use of it, according to the U.S. Census Bureau.

Continue reading

Source: Fool.com