End of Year Matching Strategies

The end of the year brings plenty of opportunity for tax-planning. There’s an important retirement planning strategy at yearend too. If your employer offers you a match on your 401(k) contribution, your most important financial priority is to take advantage of that match – it’s free money! But if you haven’t done so yet and you’re thinking about turning over a new leaf in January – don’t wait. Start today.

Each calendar year you can reach an annual limit as to how much money your employer will match. By starting now, you can still get several weeks of contributions matched, potentially receiving all the money you would have received had you contributed the entire 2008 year. Then, once January rolls around, you can take advantage again. Waiting until January means you’ll miss a golden opportunity to help your retirement.