Did you hear the news? If you contribute at least $25 a month to your MO Deferred Comp account, the State of Missouri will match your contributions dollar-for-dollar up to a maximum of $75 each month. For example, if you contribute $25 a month, you will receive a $25 match. If you contribute $52 a month, you’ll receive a $52 match. If you contribute $100 a month, you’ll receive a $75 monthly match as $75 is the highest matching incentive amount you can receive. This extra, not to mention FREE money, can make a serious impact on your account balance at retirement. If you are currently not contributing the minimum $25 a month or if you want to increase your contributions to receive the maximum incentive, you can change your contribution(s) at any time by following the directions on the How to Change Your Contribution flyer. New contribution(s) will go into effect following the month you made the change. If you are currently saving with a percent-of-pay – like most deferred comp savers – you do not need to change your contribution to a dollar amount to receive the match. Saving with a percentage of your pay has proven to be a better way to save and can help you save more for retirement because percent-of-pay contributions automatically adjust when you receive pay increases and promotions, while flat dollar contributions do not. And just so we are all on the same page, the MO Deferred Comp Plan does not fund the state match. The matching incentive is funded by the State of Missouri and subject to the approval of the state’s annual budget and could vary from year to year. Those extra match dollars from the State of Missouri can make a significant impact on your future retirement income. This is fantastic news for state of Missouri savers! Now get to saving and enjoy this incentive from the state! Oh wait, I do want to address a few more technical details because I know you’re going to have questions! Matching contributions from the state are determined based on YOUR previous month’s contributions and will be deposited in your employer 401(a) retirement savings source the month following. For example, the state match for YOUR contributions for the month of July will be deposited approximately five days after August 15, 2022. Employer match funds will be invested in the same fund(s) allocation as your personal retirement savings contributions unless you choose to change the future allocation for that source. Okay that’s all for now. Now you can actually get to saving and enjoying State match!
