Employee Sponsored Accounts


  • An employer-sponsored retirement plan. Nonprofits may have a 403(b) instead, which is essentially the same thing.
  • Workers can save and invest a percentage of their pre-tax salary
  • Employees can choose how much they want taken out of their paycheck and how their funds are invested
  • Many employers have programs that match the 401(k) contributions of their employees
  • Try to contribute the amount your company matches, otherwise you’re turning away free money