Outside the Box: Can diligent 401(k) savers go too far?

One of the most popular employee benefits is a 401(k) retirement plan.

Many employers offer some sort of contribution on the employee’s behalf. When an employer contributes to the plan, it usually occurs in one of two ways. First, your employer may offer a contribution that does not depend upon your participation. These employer payments may be labeled as either “profit-sharing” or safe harbor” contributions. Regardless of which type is offered, the employee does not have to add anything to receive the benefit. The second type of employer contribution is a matching contribution. To receive matching contributions, the employee must defer income into the plan.

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