Page 4 - Winter 2019 Destination: Retirement PERF, TRF, LEDC

HTHE VALUE OF SAVING EARLY
ave you heard the saying “A penny saved is At the same time, Anita Budget saves $2,000 a year starting at a penny earned?" When it comes to saving age 25. When Anita turns 33, because of different life events, for your retirement, this famous quote rings she stops putting money into her IRA. Although she stopped true. It’s never too late to start saving for contributing, the money in her account is still compounding retirement, but you will likely see a greater and being invested. When she goes to retire at age 65, she
impact by starting earlier. has $347,691 in her account that she can use for her future.
Let’s look at an example: Lance Finance starts working after he graduates from college but, because of personal choices, doesn’t start saving for retirement. When he reaches age 33, he decides to contribute a portion of his income to an Individual Retirement Account (IRA) that allows him to invest his contributions. Lance budgets and starts to save $2,000 a year until he retires at age 65. In this example, when Lance retires, he will have $328,074 while only contributing $64,000.
TAX TIME, AGAIN?
Anita not only has over $15,000 more than Lance, but she also contributed $48,000 less, meaning her money had a greater impact. This example shows that, thanks to the power of compounding, it pays to save early!
It’s important to remember, your INPRS benefits should only be a piece of the retirement puzzle. As you plan for your financial future, take a deeper look at just how much one dollar (or penny) saved now in a 457-B, 401K, or IRA could help you reach your retirement goals.
The new year is just around the corner, and
so is the season some people dread the most: tax season. Tax season can be overwhelming, but by staying organized and getting yourself prepared, you can file your taxes stress-free. Here are some ways you can prepare for
the completion of your tax sheets:
1. Gather receipts and information: Around January, you will receive information about filing your tax returns. It’s important to go through these forms and check to see if the information provided matches your records. To make the process even
easier, try organizing all your tax documentation such as W-2 forms, 1099’s, 1098’s, donation receipts, etc. By having proper documentation, you could have various deductibles. Make sure to organize your documents based on federal and state taxes.
2. Use a checklist: When it comes time to fill out your forms, there is a lot
of information you have
to know. Making a list of your personal information prior will reduce your stress of trying to remember everything! Some to do items you should include
on your list is your social security number, W-2 forms, mortgage interest, childcare costs and bank account information. For a further detailed checklist, check out IRS’ website: bit.ly/2Ba2iVZ.
3. Schedule an appointment with a preparer or DIY: Preparers are helpful to have if you are uncomfortable filling out your forms on your own. When you are looking for
a preparer, make sure the
individual has a Preparer Tax Identification Number (PTIN) so that you know they
are authorized to prepare your tax return. If you
would rather do it yourself, you can file your taxes online. Applications like TurboTax or H&R Block are great applications to use. Processing your taxes online is easier and faster, and
you may even qualify to file online for free. To see if you qualify, check out Indiana Department of Revenue’s website here: bit.ly/2Eh0jm3.
To get a head start on tax season, check out IRS’ website bit.ly/2Qmnvq1. If you have any questions, give us a call at (844) GO- INPRS or visit our website at www.inprs.in.gov.
Phone: (844) GO-INPRS | Web: www.inprs.in.gov | Email: questions@inprs.in.gov
Every attempt has been made to verify that the information in this newsletter is correct and up-to-date. Published content does not constitute legal advice. If a con ict arises between information in this publication and the law, the
applicable law shall apply.
The Indiana Public Retirement System (INPRS) is a trust and an independent body, corporate and politic. INPRS is not a department or agency of the state of Indiana, but is an independent instrumentality exercising essential government functions. (Indiana Code 5-10.5-2-3)
SKU#: Q42018 WANT TO KNOW HOW YOUR PLAN WORKS? VISIT US ONLINE AT WWW.INPRS.IN.GOV.