Employer-sponsored, qualified retirement plans such as 401(k)s are some of the most powerful retirement savings tools available. If your employer offers such a plan and you’re not participating in it, you should be. Here are some things to consider about employer-sponsored plans so you can take full advantage of the benefits.
- Understand your employer-sponsored plan: Read everything you can about the plan and talk to your employer benefits officer. You can also talk to a financial planner or tax advisor. This will help you recognize the benefits and administration of your employer-sponsored plan.
- Contribute as much as possible: The more you can save for retirement, the better your chances of retiring comfortably. Also, consider increasing your contributions with each pay raise you receive.
- Capture the full employer match: If your employer offers contribution matching, you should at least try to contribute up to the limit your employer will match. By capturing the full benefit of your employer’s match, you’ll be surprised how much faster your balance grows.
- Evaluate your investment choices carefully: Most employer-sponsored plans give you a selection of mutual funds or other investments to choose from. Review how they have performed over the long term, how much risk will they expose you to and which ones are best suited for your time horizon and retirement goals.
- Know your options when you leave your employer: When you leave your job, your vested balance in your former employer’s retirement plan is yours to keep. It is important to understand your options. Taking a lump sum distribution could cause you to pay income taxes and possibly a penalty, depending on your age. Other possible options without taxes or penalties include leaving the funds in your old plan, or rolling over your funds into an IRA or a new employer’s plan.
Should you need help with retirement planning or understanding your options with your retirement funds, contact TFCU Financial Advisors. We are available to help you in planning for your future retirement years.
TFCU Financial Advisors
6501 Tinker Diagonal, MWC
(405) 737-0006
TFCUFinancialAdvisors.org
Securities are offered through RAYMOND JAMES FINANCIAL SERVICES, INC., Member FINRA/SIPC, and are not insured by NCUA or insured by any other government agency. Funds are NOT GUARANTEED nor are they deposits or obligations of the credit union or any affiliated entity of the credit union, and are subject to risk, including the possible loss of principal. Tinker Federal Credit Union, Tinker Financial Services, LLC and TFCU Financial Advisors* are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc., a non-affiliated third party provider to Tinker Financial Services, LLC and Tinker Federal Credit Union. All investments and information are intended for U.S. residents only. *TFCU Financial Advisors is a registered trademark and ‘dba’ of Tinker Financial Services, LLC.