Step up Your Savings
With pay increases taking effect for most employees on the April 20 paycheck, should you consider increasing your contribution to the 401(k)? Saving just an additional 1% or 2% per paycheck now may make a big difference in your retirement nest egg later. Doing so when you receive a pay increase helps you save more without feeling the pinch of more coming out of your check than normal.
IT ADDS UP
Let’s say you make $40,000 a year. Look how approximately $33 or $66 more a month can add up.
SEE WHAT A 1% or 2% INCREASE LOOKS LIKE FOR YOU
Check out the 401(k) Contribution Estimator to model your contribution rate. By entering a few pieces of information (such as salary, age, years of service, and contribution percent), you can quickly see what your new per paycheck deduction would be in addition to the applicable match from Texas Health.
While maximizing your 401(k) contributions, you want to make sure you receive the maximum employer match, too. For most employees this means spreading your contributions out over the entire year, because you receive the employer match only when you make a contribution. If you max out before the end of the year, your contributions stop and so will the match.
HOW TO CHANGE YOUR CONTRIBUTION
To change your contribution, logon to www.netbenefits.com/thr or call 1-877-MyTHRLink (1-877-698-4754) and select prompt 5.
OTHER CHANGES THIS PAY PERIOD
You will notice, as a result of the pay increase (if applicable), your benefit premiums may change as well. With a change in pay, both your benefit amounts (for benefits such as Life, AD&D, and Disability), and your benefit premiums (for benefits such as Medical, Life, AD&D, and Disability) may increase. Most employees will see a minimal change in premiums on benefits such as life insurance, AD&D, and disability. If your pay increase raises your base salary into a higher salary bracket for medical, you could see an increase there as well. Check out the 2018 benefit costs here.
Have Questions?
If you have any questions about your benefits, email THRBenefitsSupport@texashealth.org at any time. If you have questions about your pay, you can contact your Human Resources department.