National 401k Day

401k 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, which 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

Often an overlooked part of someone’s 401k plan, 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. These have different benefits to you today and in the future. One option may fit you better than the other. Working with an advisor can help you choose.

Contribution Limits for 2020

Maximum Salary Deferral: $19,500

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

 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 the best fit might be for you!