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4 Reasons to Save with Penn's Retirement Plans

October 25, 2011, Volume 58, No. 09

“Did You Know” is a monthly series that includes valuable tips to help you get the most out of the benefits and services offered by the Division of Human Resources.

4 Reasons to Save with Penn’s Retirement Plans

Saving for retirement is one of the best financial decisions you can make. But if you’re not fully convinced, see why Penn’s Tax-Deferred Retirement (TDR) and Supplemental Retirement Annuity (SRA) plans are a smart way to safeguard your financial future.

Tax benefits. You can contribute to Penn’s retirement plans on a pre-tax or Roth after-tax basis. If you contribute pre-tax, you get a tax break now—you don’t pay federal income and Social Security taxes on that money when it comes out of your paycheck. If you contribute after-tax, you get a tax break later—you don’t pay those taxes when you withdraw money from your account in the future. And either way, you get the benefit of deferred taxes on your account earnings.

Money from Penn. If you’re eligible for the TDR plan, Penn puts money into your account even if you don’t contribute anything. But you can really amp up your savings when you contribute your own funds, since Penn matches your contributions dollar-for-dollar up to 5% of your salary.

Personal control. You’re in complete control of your retirement savings. You decide how much you want to contribute, which investment options you want to choose, and whether you want to contribute on a pre-tax or Roth after-tax basis. And you can make changes to your contributions and investment strategy at any time.

Free financial counseling. Both of Penn’s retirement vendors—TIAA-CREF and Vanguard—offer free one-on-one retirement counseling to help you meet your financial goals. They can help you find the right investment mix and get your retirement planning on track.

For more information about Penn’s retirement plans, visit the Human Resources website at www.hr.upenn.edu/benefits/retirement

Related: Important Notice from University of Pennsylvania Regarding Your Prescription Drug Coverage and Medicare; Annual Selection Period for Retirees and Long-Term Disability (LTD) Recipients

Almanac - October 25, 2011, Volume 58, No. 09