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You must be employed by a company that offers a Defined Contribution Plan such as a 401(k). A Defined Contribution Plan is a retirement plan where an employer and/or an employee contributes money with each paycheck that is invested.

Many employers offer a 401(k) Plan as part of their employee benefits package. When you start a new job you can enroll with your company’s 401(k) Plan.

As a new employee, you are given the opportunity to enroll during the first 30-60 days of employment. If you don’t sign up during that period, you’ll need to wait for the annual open enrollment period to join the Plan. Enrollment periods vary from company to company so make sure you speak with your Human Resource Manager for specific dates.

The sooner you start contributing to your company’s 401(k) Plan the better chance to reach retirement goals.

  • Learn about any employer match and vesting period.
  • Contribute at least the amount your employer will match or else you’re throwing money away.
  • Use the free financial advice offered by the Plan Administrator.
  • Attend any financial workshops offered by your company.

Get educated about your options and connect with experts to help you maximize your returns for a more comfortable retirement period.

Once enrolled in your company’s 401(k) Plan, you can change your percentage allotment pretty frequently. But, a good rule of thumb is to make sure you allocate the minimum amount your employer matches. If not, you’re throwing money away.

Ask your employer or Human Resources Department about a 401(k) plan and the open enrollment dates. If you’re starting a new job you’ll have the opportunity to enroll immediately.
Keep these things in mind:
  1. Find out if your company offers an employer match to your contributions. Contribute at least that amount to get the full match.
  2. Research the funds and stocks offered through the Plan. Seek help from the Plan Administrators and get educated about your options.

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