Categories: Jills Blog
      Date: Sep 10, 2009
     Title: Review your company retirement plan

Fall is a really good time to take a look at your company retirement plan contributions. With 4 months left in the year you have time to make adjustments, if necessary, to assure you reach your contribution goal.

If you stopped contributing during the market turmoil earlier this year, which is not uncommon, now is the time to start them back up. If you’re concerned about losing money you can invest in a money market fund or stable value fund that your plan offers until you feel more comfortable, then move the money into a stock or bond mutual fund. But it’s important to make the contribution so that you get a tax deduction as well as your employer matching contribution (if one is offered.)

Grab your most recent pay stub and look at how much you’ve put into your account to date. Then multiply the number of pay periods left in the year by the amount you contribute per check. Added to the year-to-date total, this will show you how much you are on track to contribute.

If you’re not maxing out your contributions, which for 401(k)s and 403(b)s are $16,500 for those under age 50 and $22,000 for those 50 or older, consider increasing the amount your employer takes from each check. (If you’re unsure of the limit for your plan check with your HR director.)

If it looks like you will reach the maximum before the last paycheck of the year, you should reduce contributions so that you reach the limit on December 31st. That way you’ll earn the most employer match. You should never miss the opportunity for the free money your employer is offering by not contributing each and every pay period, and putting in at least enough to maximize this company match.