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%


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


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