Thinking about retirement in California? Your CalPERS pension is a great start, but Savings Plus could enhance your financial security. This guide explores how Savings Plus, offering both 401(k) and 457(b) plans, can boost your retirement savings. Whether you’re a recent hire or nearing retirement, this comprehensive guide will equip you to make informed decisions about your financial future.
Savings Plus is a voluntary program designed to complement your CalPERS pension, providing California state employees with additional tools to build a more robust retirement nest egg. It offers an extra layer of financial security for your future.
Understanding Savings Plus
Savings Plus offers two primary savings vehicles: the 401(k) and the 457(b). Both plans allow pre-tax contributions, potentially lowering your current tax burden while saving for retirement.
Choosing the Right Plan: 401(k) or 457(b)?
The key difference between the plans lies in withdrawal accessibility. With a 401(k), withdrawals are typically allowed at retirement age, promoting long-term growth. A 457(b), however, offers greater flexibility, allowing penalty-free withdrawals upon leaving state employment, regardless of age. This can be advantageous for early retirement or career changes. Choosing the best fit depends on your individual circumstances and retirement goals.
Plan Type
Tax Perks
Withdrawal Options
401(k)
Reduces current taxable income
Usually at retirement age
457(b)
Reduces current taxable income
Penalty-free upon leaving state employment
Consult a financial advisor to determine which plan aligns best with your needs.
Growing Your Savings
Managed by Nationwide, Savings Plus offers a range of investment options catering to various risk tolerances. Whether you prefer safer, stable investments or are comfortable with higher-risk, higher-potential-return options, Savings Plus provides the tools to personalize your savings strategy. Resources and educational materials are available to guide your decision-making.
Managing Your Account
Managing your Savings Plus account is simple through savingsplusnow.com. This online platform allows you to monitor your balance, adjust contributions, track investment performance, and access valuable resources.
The Value of Savings Plus
Beyond the tax advantages and increased savings potential, Savings Plus offers peace of mind. This added financial security can alleviate worries as you approach retirement, providing greater freedom to pursue your passions and enjoy your golden years.
Is savings plus legit?
“Savings Plus” can refer to two distinct entities: a legitimate retirement savings plan for California state employees and an online trading platform (thesavingplus.com) that warrants caution. It’s crucial to differentiate between the two.
California’s Savings Plus: A Reliable Retirement Plan
For California state employees, “Savings Plus” typically refers to the voluntary retirement savings plan, a valuable tool to supplement your CalPERS pension. Backed by Nationwide, a reputable financial institution with a 50-year track record, this program manages billions of dollars in assets for hundreds of thousands of participants. It offers 401(k) and 457(b) options, providing flexibility for your retirement savings.
thesavingplus.com: Proceed with Caution
The online trading platform, thesavingplus.com, raises concerns. Multiple review sites, including Scamdoc.com and Scam-detector.com, have issued low trust scores, with some reviewers suggesting potential fraudulent activity. Thorough research is crucial before engaging with any investment platform.
Two Entities, One Name: Know the Difference
When researching “Savings Plus,” clarify which entity you’re investigating. The California state-sponsored Savings Plus program is a legitimate and valuable retirement resource. However, exercise extreme caution with thesavingplus.com trading platform.
Feature
California’s Savings Plus
thesavingplus.com
Legitimacy
Legitimate
Potentially Fraudulent
Purpose
Retirement Savings
Online Trading
Target Audience
CA State Employees
General Public
Trustworthiness
High
Very Low
Always seek professional financial advice and conduct thorough research before making investment decisions. Unlock a world of educational resources and discover a treasure trove of knowledge with textsheet.
Maximizing Your Savings Plus Contributions in 2024
Understanding contribution limits for Savings Plus is essential for California state employees. This section delves into the details of maximizing your 2024 contributions.
2024 Contribution Limits
For 2024, the contribution limit for both 401(k) and 457(b) plans is $23,000, an increase from $22,500 in 2023. This applies to traditional 401(k), 403(b), most 457 plans, and the Thrift Savings Plan (TSP). The IRA contribution limit also increased to $7,000 from $6,500.
Those age 50 and older can make additional “catch-up” contributions. Consult Nationwide or your plan documents for the most current catch-up contribution amounts for Savings Plus in 2024.
Plan Type
2024 Contribution Limit
2023 Contribution Limit
401(k), 403(b), 457(b)
$23,000
$22,500
IRA
$7,000
$6,500
Choosing Your Plan
The 401(k) is a traditional retirement plan with tax-deferred growth, designed for withdrawals at retirement age. The 457(b) offers more flexibility, allowing penalty-free withdrawals upon leaving state employment regardless of age, though income tax on the withdrawn amount still applies.
Expanding Your Savings Strategies
Beyond Savings Plus, consider high-yield savings accounts (HYSAs) for short-term savings goals. These accounts offer competitive interest rates while keeping your money safe and accessible.
Seeking Personalized Advice
A qualified financial advisor can help you create a tailored savings plan that aligns with your specific goals and circumstances. Remember, the information provided here is for general knowledge and does not constitute financial advice.
What is the Savings Plus Program?
Savings Plus is a voluntary retirement savings program specifically for California state employees, designed to supplement their CalPERS pension. It offers 401(k) and 457(b) plan options, both featuring pre-tax contributions to potentially reduce your current taxable income.
Eligibility: Most California state employees are eligible for Savings Plus.
How it Works: You contribute through payroll deductions, and your contributions are invested in funds you choose from the Savings Plus portfolio. The program offers diverse investment options, from stocks and bonds to mutual funds, allowing you to tailor your investments to your risk tolerance and financial goals.
Tax Advantages: Savings Plus offers tax-deferred benefits, meaning you don’t pay taxes on the contributions until withdrawal.
Savings Plus and CalPERS: CalPERS forms the foundation of your retirement plan, while Savings Plus acts as a powerful supplement, enhancing potential growth and overall financial security.
Contribution Limits and Withdrawals: Annual contribution limits apply to both 401(k) and 457(b) plans and are subject to change yearly. Specific rules and potential penalties govern withdrawals before retirement. Always consult the latest information and seek professional advice when needed.
This comprehensive guide aims to equip you with the knowledge to make informed decisions about your retirement savings through Savings Plus. Remember to consult official resources and financial advisors for personalized guidance.
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