Stimulate Your Retirement Savings
On February 17, 2009 President Obama signed the
American Recovery and Reinvestment Act of 2009 into law. Billed as the largest
stimulus package in a long time, it encompasses recovery, relief, and tax tools
designed to address the current economic crisis.
One of the provisions, the “Making Work Pay” tax credit is actually received
through a reduction in payroll withholding levels in 2009 and 2010. The IRS
issued an updated version of the withholding tables and asked employers to begin
using them as soon as possible, but no later than April 1, 2009. Therefore, your
takehome pay should have recently increased.
Why not go back to your old take home pay and “stimulate” your retirement
savings. By increasing your deferral with an amount equal to this withholding
decrease, you can increase your retirement savings without reducing your
previous takehome pay. To make this change, please contact the Service Center or
visit our web site today.