facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog external search brokercheck brokercheck
%POST_TITLE% Thumbnail

Retired Military Finances 101: Getting Your Matching Contributions

Retirement Funding

Most military officers quickly learn about vesting after they leave the military. In case you haven’t, vesting is when your retirement benefits become yours. Specifically, in the case of matching contributions, it is when your employer contributions and the earnings on them become yours.

In many 401(k) plans, vesting occurs at the 3-year point. So, if you leave your company after the funds vest, 3 years in this case, you can take them with you.

So, if you passed the vesting threshold you can look for a new position with no concerns about your 401(k) balance. Not so fast, Sparky…

Your funds vest only after they’ve been contributed and not all companies match on a monthly basis. In fact, more than a few wait until the end of the year to make matching contributions. If you depart prior to the deposit being made, you’ll lose that year’s matching contributions.

If you’re one of those people that never looks at your 401(k) statement, you might want to check it out before you tender your resignation. You definitely don't want to leave before you the funds are deposited (unless the old job is really bad or the new job is really good). While it might not seem like much, if you make a couple of moves during your second career, it could literally cost you tens of thousands of dollars.

Navigating the civilian financial landscape takes time and expertise. If you're short on either, you might want to consider working with a financial planner or advisor that works routinely with retired military officers. We're here when you need us.


If you found this article interesting, you might like the following blog posts:

Minimum Distribution Rules: Key Things Every Retired Military Officer Should Know


Delay Your Required Minimum Distributions...Legally


6 Things to Consider if Your Post-Military Employer Offers an Unmatched 401(k)




Disclaimer
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.