Please forward this error screen to sharedip-10718048201. Target-date funds are a popular way to save for retirement. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren’t paid until the additional investment journal entry is withdrawn from the account.

1980s as a supplement to pensions. Most employers used to offer pension funds. Pension funds were managed by the employer and they paid out a steady income over the course of the retirement. If you have a government job or a strong union, you may might still be eligible for a pension.

Most plans offer a spread of mutual funds composed of stocks, bonds, and money market investments. The most popular option tends to be target-date funds, a combination of stocks and bonds that gradually become more conservative as you reach retirement. In most cases, you can’t tap into your employer’s contributions immediately. Your payments, on the other hand, vest immediately. It’s an insurance against employees leaving early.

To oversee your account, your employer usually hires an administrator like Fidelity Investments. They’ll email you updates about your plan and its performance, manage the paperwork and assist you with requests. If you want to keep watch over your account or shift your money around, go to your administrator’s web site or call their help center. With that settled, how much should you put in? As much as possible, being mindful that you’ll need to have enough money to live, eat and pay down any debt you have. At the very least, invest enough to get the full matching amount that your company pays to match your contributions.

You don’t want to leave free cash on the table. The rules for matching funds vary, so be sure to check with your employer about qualifying for its contributions. 15,500 in any combination of pre- and after-tax dollars. They come in two varieties, the main differences being the tax implications and the schedule for accessing your funds.

Wages are contributed before taxes from each paycheck, like a deferred salary. Taxable income drops by the amount you contribute. You pay income taxes on contributions and earnings upon withdrawal. Contributions are made with money that’s already been taxed. Better flexibility: free access to your money as long as you’ve held the account for 5 years. If that’s the case, set up an individual retirement account, and lodge a complaint with your employer’s HR office. Some companies will automatically register you.

You can normally increase or decrease your contributions at any time. Don’t forget to elect a beneficiary, or the person who gets your money if you die. Finally, if your company is on shaky ground, don’t fret. If your company goes under, the plan would most likely be terminated. A simple way to marvel at the glories of compound interest. Additional Resources:WSJ — The Journal’s home for retirement planning news.