Boost Your Savings in 2019!
Three Ways to Save More
A new year is the perfect time to start tucking away a little more for your retirement nest egg. Here are three easy ways to boost your Deferred Compensation Plan account in 2019:
Take advantage of higher contribution limits in 2019! The maximum annual contribution limit is determined by the Internal Revenue Service (IRS) and adjusted each year. If you’ve been contributing the maximum amount or considering doing so, make your change by December 14, 2018, so it can be effective the first pay period in January. The new contribution limits are listed below:
|Annual Limit||Per Paycheck Amount*|
|Below Age 50||$19,000||$760|
|Above Age 50 Catch-Up||$25,000||$1,000|
Switch to our new percent-of-pay contribution! Small ongoing increases to your contributions can make a big difference down the road. This feature helps you ensure that as your pay increases, so will the amount you contribute to your account. And by proactively increasing your savings, you won’t need to try to catch up at the end of your career. You can find the percent-of-pay contribution feature by signing in to LA457.com and navigating to Account > Contributions > Change Contributions and selecting "percent." You can also find it by using the Plan's Retirement Calculator.
Make a special one-time extra contribution! Are you expecting a special extra payment on a future paycheck? If so, you can schedule a larger one-time deferral from a paycheck in which you’re expecting extra compensation. After that, the deferral amount automatically reverts to your normal ongoing contribution amount for the next paycheck.
*This calculation is provided for employees who choose to contribute the maximum annual limit in 25 regular and equal payments throughout the year, but participants can elect bi-weekly contributions in any amount they choose.
**Special Catch-Up allows participants who are within at least three years of being eligible to retire without penalty to contribute up to twice the Under Age 50 contribution amount for three consecutive years. To be eligible, a participant must have an unused balance representing amounts the participant was eligible to but did not contribute in prior years. To learn more, please contact a Plan representative.