Employer Retirement Plan Maintenance Tips

Michael Kroll

Michael Kroll

Owner, Financial Advisor
West End Wealth Management

Whether retired or still working, you most likely have or have had employer sponsored retirement plans. These plans could be in the form of a 401(k), 403(b), 457, profit sharing, defined benefit plan, or some other type of employer sponsored account. Although these employer plans have different nuances, I wanted to share some tips to make sure these plans are set up appropriately. These tips can be applied to both active plans as well as plans that are left over from previous jobs.

  1. You should review your investment allocations in these plans just like you review your other investment accounts. Whether you are contributing to a plan through your current employer, or you have an old employer retirement plan, you should review the investments that are held in those plans annually. Both market conditions and personal circumstances change, therefore investments held in your plan should be reviewed to confirm that they are appropriate for the current market conditions and your proximity to retirement.
  2. Retirement plan contribution percentages should be evaluated annually. If you are currently contributing to a retirement plan, you should make sure that you are reviewing the amount that you are saving into this plan annually. It is important to consult with your financial advisor on the amount that you are saving. By reviewing your contribution amount you can ensure that you are maxing out any company match and that you are saving enough to reach your retirement spending goals. If you have an old company plan, you are not able to contribute to it any longer.
  3. Review the beneficiaries of your retirement plans. Too often I have seen clients get married, divorced, lose a spouse, have children or grandchildren, and forget to change their beneficiaries. I believe it is important to review these beneficiaries whenever reviewing other aspects of these plans to ensure that they are up to date.
  4. Know your options for these plans. Whether it is an active retirement plan or one from a previous job, you need to know your options. It is important to know whether you have access to Traditional plans or Roth plans, as well as how much your employer will match. If you have an old plan, it is also important to review whether or not you should roll that plan into your current plan or an individual retirement account, or keep it as is. Different types of retirement plans have different investment choices, costs, risks, and payout options in retirement, and it is important to understand the features of the plans that you are invested in.

A lot of people get overwhelmed when looking at their retirement plans and all of the options associated with them. If you have any questions about your retirement plans or any of the tips listed above, please do not hesitate to contact our office and we would be happy to schedule a time to review them with you. 

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company, Spire Securities, LLC., a Registered Broker/Dealer and member FINRA/SIPC.