Tuesday, October 25, 2005

457 K plan Deferral Contributions

I have decided to defer approximately $395 out of my paycheck per pay period. to the new job's 457 K plan. According to calculations done with a payroll deduction calculator at http://www.javacalc.com/java/457Payroll.html, there will be a reduction of $72.00 in each paycheck should I increase the contribution percentage to %25.

The $72 per paycheck doesn't sound alot but it does make a difference when one is counting on every dollar of that paycheck. Luckily, I'm not in a position where I have to do that yet but in the near future, I might be if there's a change of residence. Also, since I'm also contributing to my Roth IRA account on an automatic investment program every month, I think it'll have to be a while before I can increase my contribution percentage to %25.

For the 457 K plan through the new job, I havn't really looked through the fund options that I have thoroughly. So, this is what I picked in approximately five minutes before handing off the plan enrollment to the HR specialist;


Deferral Elections by Asset Class

- Large Cap Stocks = 35%

- Mid Cap Stocks = 15%

- International Stocks = 35%

- Bonds = 15%

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I know I need to adjust the election percentages and adjust the funds that I've elected. Right now, I just picked the following:

Fidelity Contrafund for Large Cap Stocks category

Federated Kaufman Fund for Mid Cap Stocks category

Templeton Foreign Fun for International Stocks category

Bond Fund of America for Bond category

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This weekend, I'm going to go over the other fund options and make some deferral changes.






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