Employee Sponsored Accounts
401(K)
- 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
