These should be called SUPER IRAs.
Employers are required to contribute! I know, super duper.
While limited to companies with 100 employees are less, those employees are a lucky bunch. Even if the employee does not contribute (but we will always contribute), the employer must contribute 2% of the employee’s annual compensation to the IRA. And if an employee contributes (like we will), the company matches the contribution up to 3%.
Want to know more? Check in with the IRS.
Mission accomplished—I understand almost all of the IRAs. To review, that’s Traditional IRAs, Roth IRAs, and SEP IRAs.
(Originally published on Amanda Stanhaus’s financial literacy blog XO, Bettie.)