Stimulate Your Retirement Savings

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.