The DCP End-of Year Checklist: Your 7 Essential Tips!
As we wrap up 2024 and look ahead to 2025, it's the perfect time to review your financial goals and take specific actions on your Deferred Compensation Plan (DCP) account. With a few key deadlines and opportunities just around the corner, here's your end-of-year checklist to help you start 2025 on the right financial foot!
1. take advantage of Increased Contribution Limits for 2025!
Great news! The IRS has announced increased contribution limits for 2025. Since you’ll be able to save more for your future, be sure to adjust your contributions to take advantage of these higher limits. Now is the time to plan ahead and make sure you’re maximizing your potential retirement savings. Review the new 2025 contribution limits below in the chart below:
| Contribution Limits | Annual Limit | Paycheck Amount1 |
|---|---|---|
| Below Age 50 | $23,500 | $940 |
| Age 50+2 | $31,000 | $1,240 |
| Special Catch-Up3 | $47,000 | $1,880 |
2. adjust Your Contributions for 2025
Making adjustments to your contributions for the New Year is simple at LA457.com. It’s quick and easy, and ensures that your savings strategy aligns with your goals for the upcoming year. Learn more about how to change your contributions here.
3. don’t miss the Deadline to Change Contributions
Want your contribution changes to take effect on the first paycheck of 2025? Be sure to submit your contribution adjustments between December 14 - 26, 2024. Making changes in this window ensures your new contribution amount will be reflected on your first 2025 paycheck on January 8, 2025. Don’t miss out on the opportunity to start the year with the right savings strategy!
4. be aware of the Roth (After-Tax) Conversion Deadline: December 13, 2024
If you're considering converting some or all of your savings to a Roth (after-tax) account, make sure you submit your Roth Conversion Form by December 13, 2024. Voya must receive the form by this date to process the conversion in time for the New Year. While Roth (after-tax) conversions are not typical, this may be a great opportunity to take advantage of potential tax benefits for your retirement savings. Before initiating a Roth (after-tax) conversion, contact a Local Retirement Counselor at LA457.com/contact-us to discuss if it is right for you.
5. Review or Update Your Beneficiaries
The end of the year is an ideal time to review or update your beneficiary information on LA457.com. It’s important to ensure that your beneficiaries are up-to-date so your DCP assets go to the right people in the event of a life-changing circumstance. Don’t put it off—take a few minutes today to review and make any necessary updates. Learn more here.
6. Take the cybersecurity Awareness Assessment
With cyber-threats on the rise, your cybersecurity is more important than ever. As part of your year-end checklist, take a few moments to complete the Cybersecurity Awareness Assessment. Not only will this help you enhance your online safety, but by completing it, you’ll also be entered for a chance to win one (1) of ten (10) giveaways! Stay safe, stay secure, and you might just be one of the lucky winners.
7. Register for December’s Money Matters Webinar: Join the DCP!:
Do you have questions about the Deferred Compensation Plan or need a refresher on DCP basics? Don’t miss our Money Matters webinar on December 18, 2024, where we’ll cover the basics of the DCP and guide new participants through the enrollment process. Bring a colleague who’s not yet enrolled—this is a great opportunity to get them on track with their retirement savings! Register here!
By taking care of these key tasks before the year ends, you’ll set yourself up for a successful and financially secure 2025. Here's to a prosperous new year and a bright future for your retirement savings! If you have any questions or need assistance, don’t hesitate to reach out to our team at LA457.com/contact-us. Happy New Year!