Maximize Your Retirement Savings

Take Control of Your Financial Future with Smart Contributions

Planning for retirement is one of the most important financial steps you can take to ensure long-term security. A well-structured retirement savings plan can provide tax advantages, employer contributions, and growth potential that set you up for financial stability. Whether you’re early in your career or nearing retirement, understanding your contribution options is key to making the most of your retirement plan.

Types of Retirement Contributions

There are three main types of contributions that can help grow your retirement savings:

1. Employee Contributions

Most employer-sponsored retirement plans allow employees to contribute a portion of their salary. You may choose to contribute pre-tax or Roth dollars:

• Pre-tax contributions lower your taxable income now, but are taxed upon withdrawal in retirement.
• Roth contributions don’t offer a tax break upfront but allow for tax-free withdrawals in retirement.

A mix of both can help diversify your tax strategy for retirement. Check with a financial advisor to determine which option is best for your current situation.

2. Employer Contributions

Some employers contribute to your retirement plan through:

• Non-elective contributions, which are made by your employer regardless of your own contributions.
• Matching contributions, where your employer contributes a percentage based on what you save. Maximizing your contributions to meet the full employer match ensures you’re not leaving free money on the table.

3. Rollover Contributions

If you’ve saved in a previous employer’s plan, you may be able to roll those funds into your current retirement account to consolidate savings and maintain tax-deferred growth. Check your plan details to see if rollovers are accepted and whether transferring funds makes financial sense for you.

Understanding Contribution Limits

Each year, the IRS sets contribution limits for different retirement plans. In 2025, employees under age 50 can contribute up to $23,500 in a 401(k) or 403(b) plan. Those aged 50 and older can contribute an additional $7,500, with extra catch-up amounts available for those between ages 60 and 63.

Make sure to review these limits annually and adjust your contributions if needed. Not all plans allow for additional catch-up contributions, so check with your employer or plan provider.

Other Key Considerations

• Investment Choices: Retirement contributions are typically invested in mutual funds or target-date funds. Review your investments regularly to ensure they align with your financial goals.
• Vesting Schedules: Employer contributions may be subject to a vesting schedule, meaning you don’t fully own them until you meet service requirements.
• Withdrawal Rules: Most plans restrict early withdrawals, but certain emergency situations may allow access to funds with penalties. Ensure you contribute an amount you can afford without needing premature withdrawals.

Take Action Today!

To make the most of your retirement savings:

• Review your plan’s details, including contribution options, limits, and employer match.
• Consider adjusting contributions to reflect life changes or financial goals.
• Consult a financial advisor for personalized retirement strategies.
• Use educational resources to stay informed about investment options.

A secure retirement starts with smart saving habits today. Take the time to optimize your contributions and set yourself up for financial success.

Contributions to a traditional IRA or 401k retirement plan may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

Contributions to a Roth IRA are taxed in the contribution year. The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages. Any communication regarding distributions must cover all potential options as follows:

1. Leave the money in former employer’s plan, if permitted;
2. Roll over the assets to new employer’s plan, if one is available and rollovers are permitted;
3. Roll over to an IRA; or
4. Cash out the account value.