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Whether you are retiring next year or in 40 years, reviewing your company’s retirement plan annually is a good idea. If you were anything like me when I first started working in the corporate world, I had no idea what a retirement plan was! I was only 22 and the human resources lady gave me a HUGE stack of papers to “review” and sign. And don’t me started when they said I had to select my stocks, mutual funds, and bonds for my retirement allocation…..WHAT?!?

Between the endless phone sessions with my mom, the accountant, and Google, I was able to sign up for the retirement plan that was best for me. Plus, maximizing my contributions and taking advantages of the benefits that plan had to offer. Since then, I have been helping other people understand their retirement plans and maximize their benefits for a wealthier future. Here are my key questions you should ask about your retirement plan.

What Type of Retirement Plan Does Your Employer Offer?

There are many types of retirement plans out there. Most large company plans are called 401k. State and government companies have their own retirement systems (403b, TSP, etc.) and a few have pensions. Small companies may have a SIMPLE IRA or SEP IRA.

It is important to know which type a plan your company offers because each plan has different rules you have to follow. Each retirement plan has different contribution limits, withdrawal limits and penalties, and tax advantages. To get the most of your retirement plan it is good to familiarize yourself with the type of retirement plan you are signed up for.

Does Your Employer Offer Match Contributions?

Employer contribution matches are a gold mine! Technically, it is free money. Matching contributions is when your employer will match the amount you contribute to your retirement plan. Some companies match by percentage of salary or dollar for dollar.

If your company offers employer contribution matching, take full advantage of it! I don’t care if they only match 1%, with compounding interest, it is worth it. For more about how much to contribute to your 401k, read this article here.

When Are You Eligible to Participate in the Retirement Plan?

Knowing when you can start contributing to your employer’s retirement plan is important. This varies from company to company. Some companies allow you to participate on day one, other companies have a waiting period of up to a year.

Also, your age and employment status can play a part in eligibility status. Usually, part-time workers are not eligible to participate in the company retirement plan, but there are some exceptions that you need to verify with your employer. I have seen employers not offer retirement plans to employees that are under 21 years of age. Just something else you want to verify with your HR representative.

What Happens to Your Retirement Plan After You Leave Your Job?

Although you are not thinking about it now, you need to know what will happen to your retirement account if you quit, terminated, laid off, or retire. I mention this because many employers want to you be vested for a certain amount of years before you own your retirement benefits. Vested the amount of time you need to earn your full retirement plan benefits.

To clarify, you will ALWAYS own the money that you put into your retirement account, but if you have been taking advantage of employer matching you may not own all of the “matching” money yet. Many companies want employees to be vested for at least 5 years. Meaning you own 100% of the company’s contributions to your retirement account after 5 years.

Who Do You Contact When You Have More Questions?

There is no doubt in my mind that you have more questions than the ones I have listed here. Although your human resources department may be able to answer some of your questions, I recommend calling or emailing the retirement benefits coordinator at the company which your retirement plan is located. The retirement benefits coordinator will be able to answer the in-depth questions about your retirement account.

Knowing what is included and not included in your company’s retirement plan is important. It may seem like a lot to do but if you don’t look out for your wealth, who will? We work hard every day and it is vital to make sure we are maximizing every dollar that we can. Besides, we are creating the life we deserve, and it is time to make sure our wealth is building as fast as it can.

What questions do you have about your retirement plan? Leave your question in the comments below.