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Retirement Planning

Contribution Percentage Definition

A contribution percentage is a crucial aspect of your workplace retirement plan. It involves deciding how much of your paycheck you want to put towards tax-deferred contributions, such as a 401(k), 403(b), or SIMPLE IRA. It's important to note that some employers offer a matching contribution, typically up to a certain percentage of your salary. This means that for every dollar you contribute, your employer will also contribute the same amount, up to a specified limit. This is a valuable benefit and it's wise to contribute enough to receive the full match.
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