Your employer's retirement plan may have an automatic enrollment feature that has you participating as soon as you're eligible, unless you opt out. Generally, you'll want to stay in the plan because contributing makes tax sense. Two ways you benefit: Your contributions are not taxed as current income and your account's investment earnings are not taxed until you begin to take withdrawals. Even better, your employer may also contribute to your account at no cost to you.
However, being enrolled automatically doesn't mean you should ignore your account. Why? Because the default contribution rate, which is generally a percentage of your wages, may be too low to meet your retirement goals or provide all available current tax breaks. You may also want to review and change your investment options. Call us for help in maximizing your benefits.