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When you contribute to the Cisco 401(k), your contributions will double automatically, up to the first 4.5% of eligible pay you contribute. That’s the power of the Cisco match.
For every pretax or Roth 401(k) dollar you contribute to the 401(k), Cisco also adds a dollar, up to 4.5% of your pay. It’s like getting free money for your future. But you have to enroll to get it. And if you receive a bonus, you’ll want to make sure you contribute some from that payment to get the full match by making a bonus/commission pay election.
Let’s say you earn $100,000 a year, and receive the company match of 4.5% on your 401(k) contributions.
This hypothetical example assumes monthly contributions in the amounts shown, invested at a 6% hypothetical annual rate of return for 30 years, with all earnings reinvested and a 2% salary increase each year. The ending values do not reflect taxes, fees or inflation. If they did, amounts would be lower. Earnings and pretax contributions from qualified retirement plans are subject to taxes when withdrawn. Qualified retirement plan distributions before age 59½ may also be subject to a 10% penalty. Systematic investing does not ensure a profit and does not protect against loss in a declining market. This example is for illustrative purposes only and does not represent the performance of any security. Consider your current and anticipated investment horizon when making an investment decision, as the illustration may not reflect this. The assumed rate of return used in this example is not guaranteed. Investments that have potential for a 6% annual rate of return also come with risk of loss.