For all entrepreneurs, employers and employees, it seems there are more responsibilities on their shoulders than ever before – and nothing feels simple. One of those responsibilities is retirement plans and funds. With the variety of options available, retirement issues are anything but simple – but oh, so very important.
The Payroll Department suggests that autumn (read: NOW) is a good time to review your retirement plan and contribution status. For two reasons:
- You have an annual review set and don’t have to think much about it the rest of the year (which gives you peace of mind).
- You will be able to make decisions and take action in preparation for the end of year and tax time.
So what should you address in your annual review?
- Identify the type of plan you have in place (SIMPLE IRA, 401(k), 403(b) SEP or KEOGH, etc.).
- Contribution amounts change over time so verify how much you can contribute for the tax year. Be sure to ask about “catch up” contributions that you may qualify to add into your fund.
- If you have a plan that allows for employer contributions, find out how much that contribution will be and keep an eye on the deposits. You should be receiving statements on this account regularly – by mail or many are just available on line. Review them for accuracy and timeliness.
- It may be time to adjust the investment vehicles in place for your funds.
If there is a human resources department at your workplace, that is a good place to begin your inquiry. Investments and, especially retirement funds, are complex and you might want to avail yourself of the assistance of a financial planner or accountant to assist you in some of the decisions.
Here at The Payroll Department, we are a payroll provider and manage the deduction from paychecks and the deposits to directed accounts, but monitoring the retirement fund status of employees or employers is not part of the payroll services we provide. With all the balls small business owners juggle every day, chances are good that they don’t remember the details of what is in the retirement plan in place for employees in their workplace – or for themselves for that matter.
Take the time now to see where you stand with contributions and how much more you can contribute to take full advantage of any savings in taxes and then mark your calendar to review everything again next fall!
-Elaine of The Payroll Department Blog Team