Tag Archives: 401k retirement

Time of the year to check your retirement contributions!

As we enter the home stretch of the year, we wanted to remind all to confirm the desired contribution level is being met for your company retirement plan.

Retirement Contribution Levels

401k and similar corporate plans – $18k + $6k if over age 50

Now is a good time to confirm our desired level of contribution is actually occurring. If not, this is the perfect time to adjust.401k-illustration-1637162

  • Bonus offset
  • Pay Raise
  • Company ownership change
  • 401lk/similar plan Provider change
  • Investment options adjustments

All of the above and others, are reasons contribution levels may vary from our desired level.

Take a few minutes to check your latest paycheck and confirm your YTD deferrals …. Contact us with any questions, we are glad to help !

Have a great “Confirmed Retirement Contribution” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

401k Reminder – Friday – Travels Abound

Tis the season for many new and replacement investment options for 401k plans. While our fancy New Vault, which we are still establishing connections does a fantastic job of reporting, it has one catch.

401k:  New Options = Needed Review401k

Be sure to let us know if you have a new investment option in your 401k. ESPECIALLY important to let us know if your current option is being replaced with a new fund.

We will do a complete analysis to determine the appropriate action.

Hat-tip GA from the field …thanks for the reminder of the season!

Friday – Travels

Next week starts a two week trip out of the state for business, friends, family, tennis, Newsletter creation, and lastly a little R & R.

Expecting to be heavily tethered next week, but as a family favor lightly tethered the following week.

Always connected

…. Oh, some terrific articles coming here too…one VERY IMPRESSIVE research related post from Donald “The Brain” that we have never seen completed…such the research and neat findings.

But …. that is all next week, and today is a Friday, heading into a summer weekend! ENJOY!!!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

Favorite Question of the Week from the Field; Zigg Still on Vacation

With our friend Zigg still on his island and his friends intent on staying for a while, we decided to shift gears and discuss our favorite question of the week.  This week’s question derives its origin from several conversations we have had lately with client’s, making it topical for discussion.

Should I only put the amount the company matches in my 401k? and a follow-up question,  Should I put extra, non-pre taxed funds into my plan?

NO and NO !

We recommend you put as much as possible in your company 401k even if there is no match at all. There are various restrictions such as compensation and general government caps which limit contributions, but putting as much PRE-tax funds into your 401k as possible, is our recommendation.

Various plans allow you to continue after-tax contributions to retirement plans, which we are not advocates of doing.  Most plans do not have the ability to provide for specialized allocations which may be more appropriate for investment.  Don’t bypass saving these extra dollars and spend!  Just save these funds in a more self-directed manner. 

In closing, just because Zigg is on vacation, does not mean there are not sharks out there, keeping our guard up for an “Event” is still a good idea, however, economic, consumer, and earnings (more discussions soon) look very good!

Have a Super Day and a Great Weekend!

JK

214-706-4300

www.jkfinancialinc.com

 

Are You Caught Up? Those of us 50 Years of Age or Older? – Another End of the Year Tax Tip

Under current tax laws, if you do not have outside restrictions (see below), you should be able to contribute $22,000 to your company 401k if you are 50 years of age or better.

According to the IRS’s current Catch Up contribution rules individuals age 50 or over are able to contribute an extra $5500 into their 401k retirement plans, bringing the total for 2011 from $16,500 to $22,000 (2012: $17,000 to $22,500.)

If you fall into this young age category, take a peek at your latest paycheck to confirm “YTD Deferrals Into 401k” is either close, or at the above mentioned maximum.

If not, here are a few items you may want to know:

  1. You may be limited by highly compensated issues that override your ability to defer the max into the plan, you can call HR to confirm.
  2. Your employer may have forgotten to up your maximum (make a call to HR to confirm.)
  3. If you are short, and can put more money into the plan, ask your employer if you can defer an extra amount over the next several pay periods. (I apologize, it is the holiday season, but it will help the numbers at tax time next year.)
  4. If you are short, and cannot fill up the plan this year, not to worry, just let HR know you would like to be sure and make a maximum contribution for next year. Better eventually, than never, and be sure to spread that deferral evenly throughout the year!

We hope you enjoyed another tax saving tip. We understand many of these tips are very near the end of the year, however, we often find this information is more receptive to us all at this time. OH, and again, we are not recommending tax advice, as each situation is different.

Have a Great Day!

JK

214-706-4300

www.jkfinancialinc.com