If you're age 50 or older, there are important updates to your Humana 401(k) contributions, and it's all about making your retirement path smoother. To understand the updates, let's take a step back.
You could contribute a maximum amount each year to your 401(k) plan in pre-tax and Roth contributions. This max amount is called the 402(g) limit. The IRS sets this limit, and it's adjusted periodically for inflation. Both pre-tax and Roth contribution types count towards the same single limit in any combination that you wish to contribute to your 401(k) plan.
Starting the calendar year you turn 50, you can give your savings an additional boost through catch-up contributions. The catch-up limit varies based on your age, and you're eligible to start making catch-up contributions at any point during the year you turn 50.
Until recently, you may have had four different contribution elections.
Now, your elections have merged into just two: pre-tax and Roth.
If you've already made catch-up elections, they've been automatically merged. Everything else? It stays the same. Your contribution limits, IRS tracking, and investments are all untouched.
To check or update your elections, log in to your 401(k) account at workplace.schwab.com. Click on "Manage Account," and then on "Change Contributions" to see and adjust your contributions. On that page, you'll see pre-tax and Roth as your catch-up elections have been merged automatically. All that's left is to make sure your combined elections reflect what you want to contribute.
Need help navigating? Call Schwab Retirement Services at 800-724-7526 or schedule a complimentary retirement planning session.
The road to retirement just got easier to follow. Let's keep moving forward - together.