facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
%POST_TITLE% Thumbnail

Happy National 401k Day

Since 1996 National 401k Day has been celebrated the Friday after Labor Day.  In addition to 401ks, employers may offer other types of retirement savings plans such as a 403b or a SIMPLE IRA. No matter what kind of plan you have access to, you should consider the following quick tips:

Understand how your employer match works

The amount of money your employer contributes may depend on how much you contribute. Are you receiving the maximum contribution from your company?

 Understand the vesting schedule

Money contributed by your employer is often on a vesting schedule - this is the amount of time it takes for you to own, or have access to, their contributions to your account. Vesting schedules vary by employer.

 Check your beneficiaries

An often overlooked part of someone’s retirement savings are the beneficiaries. Review the primary and contingent beneficiaries on your account to make sure they reflect who you would like your account to be left to.

 Traditional vs. Roth Contributions

Many plans now offer a Roth 401k option in addition to the traditional pre-tax option. Roth contributions are taxed today and distributions are tax-free in the future. One option may fit you better than the other. Working with an advisor can help you choose.

401k and 403b Contribution Limits for 2021

Maximum Salary Deferral: $19,500

Maximum Catch-up Contribution (for those 50 years old and over): $6,500

SIMPLE IRA Contribution Limits for 2021

Maximum Salary Deferral: $13,500

Maximum Catch-up Contribution (for those 50 years old and over): $3,000

Unable to maximize contributions today? Don’t let that stop you from saving! 

Set aside what you can now and increase it over time. Your plan may have an automatic escalation feature that allows you to schedule your future savings increases. As an example, you could set your contributions to increase by 1% each year during raise time!

 

Don’t have a 401k? No problem! There are many retirement savings opportunities available.  Contact us to see what might fit you best!