PBGC

Is my retirement plan insured?

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Question: Is it true that the federal government insures retirement plans? Answer: Not exactly.  You’re probably referring to something you heard called the Pension Benefit Guaranty Corporation (PBGC) which is a federal agency created by ERISA. PBGC insures certain pension benefits, specifically defined benefit plans, but not other types of retirement plans. To explain it a bit further: A defined benefit plan is a qualified employer pension plan that promises to pay a specific … Read More

Extra

What would you do with an extra $1,000?

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With The Tax Relief Act of 2010 Employee payroll taxes have been cut from 6.2% to 4.2% for 2011.1 So if you pay into Social Security, you’re looking at a slight increase in your take-home pay. Have you considered what you will do with that extra money? How about directing it into your 401(k) or IRA? That 2% “tax savings” will show up in higher take home pay throughout the course of the year – it … Read More