A little more now can make a big
It’s a good idea to maximize your 401(k) savings if you can. Why not take a look at your account now and see if you are putting away as much as possible?
As a reminder, the current annual IRS 401(k) contribution limits are:
- $17,500 for employee pre-tax contributions
- $5,500 for employee “catch-up” contributions if you are age 50 or older
- $260,000 in maximum eligible compensation from which pre-tax contributions may be made
Are you taking advantage of the power of time?
Saving early can make a big difference! It takes only $31 a month to get to a retirement-age goal of $100,000 if you start at age 25. If you wait until age 45, you’ll have to save $176 a month to reach the same goal.
Do yourself a favor and start saving more when it counts the most: right now. Take Jennifer and Mike, for example. Mike starts early. He saves $2,000 a year from age 22 through age 30 and then stops. His total investment is $18,000. His $18,000 has another 35 years to grow.
Jennifer, on the other hand, waits to start saving. She starts at age 33 and invests through age 65. Her total investment is $66,000.
Mike and Jennifer earn the same rate of return—8% a year. But Jennifer’s account total never reaches Mike’s even though her total investment was more. That’s because Mike had time on his side! See the difference time and compounding can make?
Did you get your 401(k) company match?
In March, Pearson contributed a total of $16.5 million into eligible employees’ 401(k) accounts for the 2013 Annual Company Contribution. Log on to your account at retireonline.com/pearson and check to see how much you received.
Here’s another bit of good news: The JPMorgan employee portal has had a recent facelift to make navigation simpler and easier. For example, there is now a “QUICK VIEW” button on your home page that allows you to view your year-to-date 401(k) plan activity at a glance. There’s also a “GO TO” option that takes you directly to frequently used menu options. Go online and check it out!