*First National Community Bank’s blog does not constitute legal, tax, accounting, investment or other professional advice. Recipients should consult their professional advisors for advice.
National 401(k) Day, celebrated every year on the Friday after Labor Day, is intended to prompt us to check in on our retirement nest egg. Studies show that only 70% of Americans are financially prepared for retirement. However, understanding what you can do to turn your dream of retirement into reality can be achieved. We have compiled the top three 401(k) tips for managing your retirement savings more easily and efficiently.
Tip #1: Rollover Retirement Savings Into Your Current 401(k)
While it can take time and some leg work, consolidating your 401(k) balances with previous employers by moving your retirement savings to your new company’s retirement plan when you change jobs can save you time and money and can greatly simplify your retirement planning. Rolling over your funds into the new plan will consolidate your plans making it easier to keep track of your retirement funds. Be sure to check with your Human Resources department to make sure that your plan allows rollovers.
Tip #2: Review Your 401(k) For Accuracy
Each year – and with any life changing events such as marriage, divorce, etc. – it is important to review your account data for accuracy, specifically the address you have listed and beneficiary designation. This helps ensure that your updated information is current and will not cause any issues will down the line as you change jobs or relocate. Checking for accuracy to ensure there was no human error is also important as information on your enrollment forms is often entered manually or you may have inadvertently left off an extra number of your new address. This step is often overlooked, but it pays to check.
Tip #3: Consider Other Retirement Savings Options
Designing the best retirement plan should be as individualized as you are. In addition to, or in lieu of, a 401(k), opening an Individual Retirement Account (IRA) is a great way to set aside money for retirement. An (IRA) is a form of pension that provides tax advantages for retirement savings. It is a trust that holds investment assets purchased with a taxpayer's earned income for the taxpayer's eventual benefit in old age. At First National Community Bank, we offer Traditional IRAs, Roth IRAs and The Coverdell Education IRA to help achieve your retirement and educational needs and goals. To learn more about First National Community Bank’s retirement savings options, visit: https://fncbank.com/Personal-Banking/IRAs
Planning ahead for retirement can be one of the most important investments of your time and money to make sure that your dreams of a comfortable retirement become reality. As your locally owned community bank of choice, the success of your financial future is top of mind. We offer Personal Checking Accounts, Money Market, Personal Savings Accounts, CDs, IRAs, Business Loans, Mortgages and Personal Loans of all shapes and sizes and much more! To learn more about First National Community Bank’s financial solutions, contact us here.
Member FDIC. Equal Housing Lender.