Do You Understand Your Employer Retirement Benefits?

Many companies offer retirement benefits. Those benefits can range from simply offering 401(k)s to a wide range of financial resources that can include financial planning and multiple retirement account options. Furthermore, with legislation working it’s way through Congress that could allow small businesses to band together to offer retirement savings plans, more Americans could find themselves working for an employer that offers such benefits. Regardless of the size of the company you work for, if you are taking advantage of any employer offered retirement benefits, you need to make sure that you understand what those benefits entail and what their limitations are. There are many ways to go about that. One easy way to understand your retirement benefits is to read over any paperwork you received or filled out when you first entered the plan (which you should have kept in a safe place or be able to access online). That paperwork most likely will tell you what you can and cannot do. If you have questions beyond that, you should be able to reach out to the custodian of your retirement plan. If you work for a larger company, you may have a benefits manager that you can reach out to. While they may not know all the answers, they should at least be able to point you in the right direction or get you in touch with a plan custodian who can help. If your company offers retirement planning talks or events centered around planning for retirement, you should try to attend those if possible. If you are new to the retirement savings game, try to make sure that you understand as much as you can about your retirement savings plan, particularly what you can do with it should you choose to leave your employer as well as your ability to change contribution rates. If you are not new to the retirement savings game and have had a retirement plan through your employer for years (or decades), you will want to make sure that you stay abreast of any changes to those plans and how such changes could potentially impact your future distributions or ability to rollover the plan. As always, if you need help with deciding what to do with your employer retirement plans or you want to combine it with an IRA, you should speak with a certified financial planner.