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  • Archive for September, 2010

    Celebrating the Road to Retirement with 401(k) Day

    Friday, September 10th, 2010

    September 10th marks the annual celebration of 401(k) Day spotlighting the importance of and need for employer-sponsored profit sharing and 401(k) plans. For those starting a new job, retirement may be the last thing on your mind.  But the earlier you establish a 401(k) plan and start saving towards retirement, the better off you will be down the road.

    The basics: A 401(k) plan (also called a defined contribution plan) is a retirement savings plan set up by an employer. If your employer offers a 401(k), you can elect to have a portion of your salary deducted from your paycheck and contributed to the plan. In some cases, employers match a certain percentage of an employee’s salary. If your employer provides a match, know the rules and contribute enough to get the full added benefit.  Otherwise, it’s like leaving money on the table!  Another benefit to 401(k) plans is that federal (and sometimes state) taxes on your contributions and investment earnings are deferred until you take money out of the plan (typically, and preferably, at the time of retirement.)  This allows your money to grow tax-free until you retire.

    The first step:  Find out whether or not your company offers a 401(k).  If so, find out who handles employee benefits and what you need to do to sign yourself up. Many people are overwhelmed with all the paper work on the first day of a new job, but this can be an important time to sit down with your finances and figure out how much you can afford to contribute from each paycheck. Fill out the enrollment forms and return them right away. Once you have signed on to your company’s plan, you can feel good knowing that you are starting to build a stronger financial future with each and every paycheck.

    So celebrate the 401(k) plan today by making sure that you are signed up and contributing as close to your company’s established maximum contribution as you can.

    To learn more about the 401(k) plan and how you should be preparing for the road towards retirement check out PSCA’s 401(k) Day website and WISER’s helpful 401(k) Fact Sheets today! Happy 401(k) Day!

    WISER

    About Us

    WISER is a nonprofit organization that works to help women, educators and policymakers understand the important issues surrounding women's retirement income. WISER creates a variety of consumer publications including fact sheets, booklets and a quarterly newsletter that explain in easy-to-understand language the complex issues surrounding Social Security, divorce, pay equity, pensions, savings and investments, banking, home-ownership, long-term care and disability insurance.

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