Welcome to Module 3: Employer-Sponsored Retirement Plans!
Employer-sponsored retirement plans play a significant role in many individuals’ retirement strategies. These plans often provide unique benefits, like employer matching, that can substantially increase your retirement savings. Understanding the nuances of these plans will help you take full advantage of the opportunities they present.
In this module, we will discuss the following topics:
In this chapter, we’ll provide an in-depth look at 401(k) plans. You’ll learn about traditional and Roth 401(k)s, the benefits and limitations of each, and how to make the most of your contributions. We’ll also delve into the topic of employer matching, a critical aspect that can significantly boost your retirement savings.
Pension plans, while less common today, are still a vital part of retirement planning for many. This chapter will explore the nature of pension plans, their benefits, and considerations for those lucky enough to have them. We’ll also discuss what happens to your pension when changing jobs and planning for potential pension shortfalls.
There’s more to employer-sponsored retirement plans than just 401(k)s and pensions. This chapter will introduce you to alternatives such as 403(b) plans, 457(b) plans, and Thrift Savings Plans (TSPs). We’ll cover who is eligible for these plans, how they work, and the benefits they can offer.
By the end of this module, you’ll have a thorough understanding of the various types of employer-sponsored retirement plans and how they can fit into your overall retirement strategy. This knowledge will empower you to make informed decisions and maximize your retirement savings. Let’s dive into the world of employer-sponsored retirement plans!