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401k Providers Help Maximize Your Contributions

401k Providers Can Help You Maximize Your Contributions

Here at The Payroll Company, as one of the area’s leading 401k providers, we are constantly working with our clients to ensure that they get the most of out of their specific 401k plans. We partner with our clients to learn exactly what their specific plans offer. From there, we can create a customized strategy to maximize contributions and tap into the many advantages offered by this type of saving solution.

Annual IRS Limits: Know What You Can Expect In 2016

We discuss at length the annual IRS limits that contributors will deal with in any given year. First and foremost, in 2016, contributors to 401k plans can defer up to $18,000 from their salary into their plan. If the contributor is age 50 or older, or has an annual compensation of $260,000 or greater, the IRS will allow an additional $6,000 salary deferment. Knowing what to expect in 2016 can help you plan accordingly for the upcoming year.

Tips To Make The Most Out Of Your 401k Savings Opportunity

Beyond knowing the annual IRS limits, our 401k providers also recommend creating a customized plan for maximizing contributions. Many of our clients initially assume that they simply cannot spare the money out of their paychecks. However, using a few simple tips can make the savings process a lot easier to manage. As the new year approaches, you may want to consider:

Splitting Your Raise: If you are comfortably living on your existing salary, splitting your raise to up your 401k contributions can prove a wise choice. If you do not feel like you can spare half, consider a lower percentage.

Create A Budget: Creating a budget can play a major role in any savings strategy. Oftentimes, individuals do not consistently track their expenditures. Once they put them all down on paper they finally get a glimpse into the many differences between a “want” and a “need.” Tracking your monthly costs will help you identify where you can readjust spending to put toward your 401k.

Give Just 1% More: If you are not currently maxing out your 401k savings, consider upping your contributions by just 1% every year. Chances are you will not notice the difference out of your check, but the long-term benefits can prove significant.

Contact The Payroll Company today to find out more about what leading 401k providers can offer to your savings strategies.