Savings Plan Basics

Company match: Beginning January 1, 2024, the company increased the match from 3% to 4%. This means that for every dollar you contribute to your 401(k) plan, the company matches, up to 4%. In addition to increasing the match, this new money source is immediately vested at 100%, and is not subject to a vesting schedule. This is money your company is committed to giving you—so don’t miss out. A company match is like an instant return on your investment. Be sure you are saving enough to get the full match.

Tax benefits: One of the main benefits of 401(k) plans is the tax treatment: when you put money in before taxes, you pay lower income taxes now, and you defer paying taxes until you need your money (and often, you’re in a lower tax bracket after you retire, so you pay less than you would now).

Contribution limits: 401(k) plans are regulated by the government (that’s how you get the tax benefit). They set contribution limits each year. For 2024, the IRS limits the total contribution amount to $23,000.

For more information on the 401(k) plan, click here.