86% of Vanguard 401(k) Plans Now Offer Employer Matching Contributions. Are You Taking Advantage of This Benefit?

Vanguard recently released its "How America Saves 2025" report, which offers insight into the approximately 1,400 defined contribution plans it manages, as well as the savings habits of the 4.8 million participants in those plans.The good news is a lot of people are making use of employers' defined contribution plans, typically a 401(k). But there's one key benefit in your 401(k) you should know about and take advantage of as it amounts "free" money.Essentially, a 401(k) plan is a tax-deferred retirement account offered by your employer. It is similar in nature to a traditional IRA. You put income in without paying taxes on that money, which lowers your tax bill today. That money can grow without tax consequences until you withdraw it. At that point, the cash coming out of the account is taxed as regular income.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool