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There are many benefits of participating in a
retirement plan! For example, you can:
·
decrease your
taxable income by making pre-tax salary deferred contributions
if allowed by the plan; and
·
increase your retirement
savings.
Participate in your
employer’s retirement plan
Enroll as soon as you can!
Many retirement plans have quarterly or semi-annual entry dates. Contact your
employer to find out when you can participate and consider joining on the next
entry date.
Review your retirement plan
contributions
Once you have joined your
employer’s retirement plan, you may periodically want to review the amount you
are contributing to the plan. The maximum annual salary deferral contributions
allowed for 2010 and for 2011 are:
·
$16,500 to 401(k) or 403(b)
plans
·
$11,500 to SIMPLE plans
If you are 50 or older by the end of the year, your retirement plan may allow you to make additional catch-up contributions.
For 2010 and 2011, you can make catch-up contributions of:
·
$5,500 to 401(k) or 403(b)
plans
·
$2,500 to
SIMPLE plans
So, join the plan and
start saving for your retirement!
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