A new year means it’s a great time to get caught up on your finances – from your 401(k) plan, to preparing for retirement, read on below for more information.
The annual 401(k) Plan limits for 2016 remain unchanged (from 2015) as follows:
- $18,000 = employee pre-tax elective deferrals
- $6,000 = employee “catchup” contributions if you will be age 50 or older at any point during 2016. This is in addition to the $18,000 in elective deferrals for a maximum of $24,000 in employee pretax contributions for 2016.
- $265,000 = maximum compensation taken into account for purposes of employee pre-tax deferrals and employer match
Remember that Pearson matches your contributions $1 for $1, on the first 3% of your eligible compensation plus $0.50 for every dollar on the next 3%. This means that in order to receive the maximum employer match, your pre-tax elective deferral election should be at least 6%.
You can view or update your current contribution rate, by logging into your 401(k) Plan account online or by contacting the Empower Retirement call center at 800-345-2345.
When you’re on-the-go and want to check your Pearson Retirement Plan account, just pick up your mobile device.
Need help saving more for retirement? Unsure about the different investment options offered under the plan? Visit the Education Center within your 401(k) Plan account to get answers to these questions and more.
Employee Stock Purchase Plan
As a reminder, the purchase of shares under the Employee Stock Purchase Plan (“ESPP”) was completed in early January and credited to your ESPP account. You can view the number of shares you received by logging into your ESPP account online
Medicare in 2016
Will you or a family member be turning 65 (or otherwise become Medicare eligible) in 2016? Then you should visit the Medicare website for information on Medicare benefits, premiums, enrollment, and more. You can also speak directly with a Medicare representative at 800-633-4227.