Would you turn down free money? Many employers match an employee's 401(k) contributions up to a certain percent of salary. If you contribute less than your employer is willing to match, you may be passing up free money. According to a recent report,1 29.4 percent of 401(k) participants do not contribute enough to their 401(k) to receive their full employer match—with higher rates of foregone matches seen among younger workers age 20 to 29 (43 percent) and those automatically enrolled into an employer-sponsored defined contribution plan (41 percent). An earlier report showed that 40 percent of employees making less than $40,000 fall short of contributing the full extent of their employer's match.2 Millions of workers are leaving money—free money—on the table.
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