No retirement plan at work? 4 tips for 2016 Open Enrollment Season
Open Enrollment Season is that all-important time each year when employees reassess their needs and make changes to their workplace benefits, such as healthcare, life insurance, and retirement savings. Whether or not you have access to these benefits through your employer, it’s a good idea to take this opportunity to think about your future — in particular, your financial future. Make the most of this Open Enrollment Season today and set yourself on a path to a more secure tomorrow.
Open a retirement savings account
One out of every three private industry workers lacks access to retirement benefits at work. Certain workers have even lower access rates – 59 percent of service industry workers and 63 percent of part-time workers don’t have access to employer-sponsored retirement benefits.
If you’re one of the many working Americans who don’t have access to an employer-sponsored retirement savings plan (such as a 401(k)), myRA® could be a great option for you. myRA is a safe, simple, and affordable retirement savings account that has no fees and makes it easy to start saving. The single best thing you can do is to simply get started saving. And setting up automatic contributions from your paycheck or a checking or savings account helps make it easy to put the money away each month. A year from now, you’ll be glad you started today, so don’t put it off.
See how savings can add up quickly
With the myRA calculator, you can easily check out how saving each month can really add up. Try the calculator and see what happens if you save $50 per month. How about $100 or more? Even if you can only save a few dollars each month, remember that just starting saving is a big step in the right direction. Once you build up savings in your myRA account, you can transition the funds into other retirement accounts to continue saving toward your retirement goal.
Plan for the Saver's Tax Credit
By contributing to a retirement savings account like myRA, you may qualify for the Retirement Savings Contribution Credit (commonly known as the Saver’s Credit), a special tax break for low- and moderate- income taxpayers who are saving for retirement. Depending on your adjusted gross income, tax filing status, and other factors, you may be able to claim a tax credit for a portion of the first $2,000 you contribute to a retirement account during the year. Start saving with myRA now and, if you’re eligible, you’ll be able to claim the credit when you file your taxes. Learn more about how saving with myRA could help you pay less in taxes.
Ensure your access to health care
In addition to planning for your financial wellbeing, take this opportunity to sign up for health care; affordable plans are available through healthcare.gov. After all, now that you’ve taken steps to secure your financial future, you’ll want to be around to enjoy it.