Fiction: Skipping a year of IRA or 401(k) contributions will not make that big of a difference when I plan on retiring.

Fact: The uncertain direction of the Social Security program, coupled with the ever-changing economic climate, is truly an incentive to not miss your yearly 401(k) contributions. We now live in a time where pensions have fallen by the wayside, causing many of us to depend solely on our 401(k) retirement plans.

Many companies will match your contribution up to a certain preconfigured percentage, so you're essentially getting free money. The earlier you start contributing to the 401(k), the more your money will grow. Missing a year of contributions may make a real difference.


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