Many retirement plans include a matching contribution from your employer. Matching contributions vary from plan to plan, but the match is often a percentage of the amount you contribute, up to a set maximum. These contributions offer many advantages. They don’t reduce your personal contribution limits, they grow tax-free while in the plan, and they are taxable only when withdrawn from the plan.
How to participate
If your employer offers a match, start contributing! That is all you have to do to get these free contributions. Consider contributing enough to get the maximum matching contribution offered. If you don’t, it is like leaving money on the table.
Matching contribution example
Jeff contributes to his company’s retirement plan:
5% of his $30,000 annual salary, or $1,500
His employer matches:
50% of his contributions up to 5% of his salary.
Annual to retirement account contributions:
$2,250
Log in to your account to see if your employer offers matching contributions. If so, consider contributing enough to get the maximum match.
OneAmerica Financial is the marketing name for the companies of OneAmerica Financial. Products issued and underwritten by American United Life Insurance Company® (AUL), Indianapolis, IN, a OneAmerica Financial company and variable products distributed by OneAmerica Securities, Inc., a Registered Investment Advisor, Member FINRA, SIPC. Not available in all states or may vary by state. • Provided content is for overview and informational purposes only and is not intended as tax, legal, fiduciary, or investment advice.
All individuals are fictitious and all numeric examples are hypothetical. These hypothetical investment returns are for educational purposes only and are not indicative of any particular investment or performance. Hypothetical returns assume reinvestment of earnings. Actual returns or principal value will vary. Balances shown are before reduction for taxes.