You work for an employer who supplies and Ira or a 401K plan for their employees. In this scenerio, the employer has the choice of making matching Ira contributions along with their employee. This is one way that the employers get their employees to stay with the company and also to give them a head start on saving for their retirement. This type of contribution works with the percentage of income that the employee wants to take from their pay and put into their Ira. The employer will then match that percentage and put their share in also. So if the employee choose 3 percent of their pay, they will actually get 6 percent put into their Ira.
What Are Matching Contributions In An Ira?
October 5th, 2008 | Finance :: Wealth-Building