Employer Match
One of the benefits of investing in a 401(k) plan is that employers may match a percentage of the employees’ contribution.
If an employer has a 50% matching program, for example, then for every $1 that a participant contributes, the employer will contribute 50 cents to the account.
The image below illustrates the growth of two hypothetical investments. By taking advantage of the employer matching program, the employee gained an additional $23,658 over the 20-year period (1990-2010).
Source: StateTrust’s analysis of Morningstar data. Performance shown is not indicative of the performance of any specific investment. An investor cannot invest in an index, such as the one these graphs are based on. Past returns are no guarantee of future performance. These returns are based on historical information, from sources believed to be reliable, but accuracy cannot be guaranteed, and these returns can vary in future time periods.
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