3 Characteristics of a Good 401(k) Plan

3. CHARACTERISTICS OF A GOOD 401(K) PLAN MATCHING CONTRIBUTIONS 1 Most 401(k) plans provide a matching contribution of 50 cents for each dollar saved, up to a maximum of six percent of an employee's annual salary. IMMEDIATE ELIGIBILITY 2 To enjoy the maximum savings from your 401(k) plan, it's best to be eligible to participate from your first day of employment. CATCH-UP CONTRIBUTIONS If you happen to be an employee who is age 50 or older who needs to catch up on retirement savings, some 401(k) plans allow you to do just that. IN CONCLUSION By knowing what characteristics to look for in a good 401(k) plan, chances are you'll be able to take full advantage of whatever retirement benefits your employer may offer. Whether it's immediate eligibility or matching contributions, be sure to take advantage of any and all opportunities your employer may offer.