Three Steps Nonprofit Workers Can Take to Jumpstart Retirement Savings

Whatever your chosen career path, you’re sure to find valuable non-monetary benefits that influence your day-to-day and overall job satisfaction. For nonprofit employees, doing good in the world through pursuing meaningful, cause-driven work doesn’t need to come at the cost of your future.

Here are some steps to take full advantage of the benefits offered by your employer:

1. Contribute to your workplace retirement plan.
A 401(k) or 403(b) makes it easy to set aside money for the future because you can make contributions automatically from each paycheck. And many employers will now automatically enroll new employees into the workplace retirement plan unless they opt out.

2. Take advantage of your employer match on contributions.
While the exact amount and structure for these matches vary, the bottom line is that if your plan includes a match, your employer is offering free money, so you should take advantage of this benefit by contributing at least enough to max out on the match. 

3. Get the most out of your plan.
Beyond the savings component in your workplace retirement plan, there are some other benefits inherent to these types of accounts. For example, traditional contributions are made on a pretax basis and grow tax-deferred until you take a withdrawal. If your plan offers designated Roth contributions, you could make after-tax contributions that will grow tax-deferred and be completely tax-free if withdrawals meet certain conditions.

The tax information contained herein is for informational purposes only. You should consult your financial adviser or attorney regarding your individual circumstances.