WizardOfAz

Who'd pass up "free" money? More people than you might think. Nearly a third of American workers fail to take advantage of 401(k) plans.

Never mind that employers typically match a worker's contributions with hundreds or thousands of dollars a year. Never mind that employees don't have to do anything to qualify other than stash money away for retirement. For a variety of reasons, including inertia and ignorance, many workers don't take the perk.

Even of those who do sign up, about one in five doesn't contribute enough to meet their companies' full match, according to a new survey by the Hewitt Associates human resources firm.

http://moneycentral.msn.com/content/...an/P121795.asp

Linderbee

My company matches dollar for dollar first 3%, then 50 cents for every dollar for the next 2%--I IMMEDIATELY signed up for 5% of my pay--it's been a little hard living w/o the extra $$ in my paycheck--but I'm getting FREE money from my company. It's about the only good benefit they have. Best part is, everyone is 100% vested for all of it immediately. So far, I've put in around $550, and there's just over a thousand in it. Can't ask for a better deal!

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dreamcastrocks--My Hero!!

thirty-two

My company matches almost 3.85 to every dollar. But since I havent had enough time with them, I cant get it yet.

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Rest in peace, Skkorp. We'll never forget you.

40yearfan

WOW!!!! $3.85 matched to every dollar you put in? That has to be the best 401K in the country.

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Old age isn't so bad when you consider the alternative.

thirty-two

It is.

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Rest in peace, Skkorp. We'll never forget you.

Linderbee

Where the heck do you work????

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dreamcastrocks--My Hero!!

Jersey Girl

I put in 5% and my employer puts in 8%. Gotta love it! :refusestoletthegovernmentdictatewhenIcanretire:

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"'Ohana' means family. Family means nobody gets left behind. Or forgotten." EVER.

Dback Jon

man - must be nice - mine only matches 50% - up to 5%...

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R.I.P Tim Minnick

The KING of Cards

Russ Smith

Wow wherever you work must be great.

I've been at my current company nearly 5 1/2 years and we don't match at all. EVery so often someone will ask the question at a all hands meeting and the CEO consistently says no, we're not considering doing it.

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“Your expectations always exceed outside expectations. I feel like you just can’t stop working, can’t stop getting better, because I’ll be a failure in my eyes before I’m a failure in someone else’s eyes.” -- Arron Afflalo

Jersey Girl

Yeah, it's very nice.

I keep telling my cousin to put money in her retirement plan. She's 29 and was talking the other day about retiring when she's 55. LOL! My aunt (her mom) looked at her like she was from a different planet. Great idea, but ya gotta do more than say it ... you gotta have a plan!

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"'Ohana' means family. Family means nobody gets left behind. Or forgotten." EVER.

Linderbee

That's the main reason why I started putting in the 5% as soon as my company offered it. I'm 33, and have $0 in savings, etc. and I knew I had to do something, or I'd be working until I died, and even death would be sooner rather than later if I'm never able to retire. I know what I'm doing now is not nearly enough yet, but it's a start, and hopefully I'll be able to afford more soon!

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dreamcastrocks--My Hero!!

Russ Smith

There is a rub to that though, I've been putting in money to a 401k and an IRA since I think 21 or 22. I did once cash in a 401k to buy a Mustang but I was 23 and too dumb to realize what substantial penalties for early withdrawal really looks like until it was too late(loved the car though).

I haven't had company matching for over 5 years but my 401K is around 90K and my IRA is over 70K. And I gotta tell you everytime I get a statement I look at it and think "wow that's a lot of money", and then I think "but what the hell good is it doing me now at 39 1/2?" I think IRA is 59 1/2 and 401K 62 before you can start withdrawing without penalty?

There are some benefits, cuts your taxes, you can take loans against it, 10K towards a first house purchase, but I stopped contributing the 2K a year into my IRA about 5-6 years ago because it makes a big difference in my current life to have that 2K.

If you can afford to do it by all means do it but I think Suze Orman really overstates it when she tells everyone to do it no matter what, some people really can't afford to put that money aside.

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“Your expectations always exceed outside expectations. I feel like you just can’t stop working, can’t stop getting better, because I’ll be a failure in my eyes before I’m a failure in someone else’s eyes.” -- Arron Afflalo