If you aren’t participating in your company’s retirement plan (i.e. a 401(k)), then you are really missing out. Not only is it a great way to save for retirement, there may be numerous perks and benefits that you may be giving up. For one, if your company offers contributing matching, you could be leaving extra money on the table. Even if the match is only a small amount–such as 3%–that’s still better than nothing and can go a long way over a long period. Being an active participant in an employer retirement plan can also potentially allow you to deduct a traditional IRA contribution from your taxes should you fall within the proper range. A deduction of a contribution on your taxes doesn’t have to do with your salary or Modified Adjusted Gross Income (MAGI). Furthermore, you don’t have to contribute a large amount to your retirement plan nor do you need to be a participant for a long period of time. So long as you make a contribution and are active for the required period each year, then you will be considered an “active participant” for tax purposes. Even if you don’t intend to use your employer retirement plan as your main source of retirement savings, it can still be a good idea to at least set up an account and contribute a little each year. If you have questions about your company’s retirement benefits, you should speak with the benefits manager or human resources contact where you work. So, are you an active participant?