Tuesday, September 29, 2009

Forgoing a Vacation Could Boost Your Retirement Fund

Can you give up a few days on the beach, a week at the in-laws’ house or a trip to Disney World? If so and you’re willing to stay on the job, you might be able to use those vacation days as contributions to your retirement plan. The Treasury Department now gives companies the option of allowing employees to transfer unused vacation pay into 401(k)s, Keogh and profit-sharing plans. This applies to sick-days and personal days, too. The existing contribution limits still apply … $16,500 … $22,000 if you’re over 50 years old. So as long as you don’t mind disappointing your spouse, your kids, or your mother-in-law, a vacation relinquished today could pay off in spades when you retire! Best wishes, George

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