G
geebee
I had an idea during a staff meeting yesterday that I found out will work in theory. Some might want to look into this.
I want to do something significant financially but can't simply write a check. I though about the money I have taken out for my 401K each paycheck. I realized I would not miss a month's worth of these deductions in the long run and, if the money was coming out of my check anyway, I would not be negatively affected financially by donating the money. I talked to others in my company and we all agreed it would make sense.
I talked to my 401K company rep and asked him to check into how this could be done without affecting any 401K agreements. Our 401K is set up so we can make monthly changes to our 401K so that part is not an issue (this might be an issue for a company who might only allow quarterly changes).
Many of us are going to take the money we normally contribute to our 401K, still do payroll deductions and send the money to the relief effort. As administrator, I have to create a form for the employee to complete, approving the change and keep everything on file for audit purposes. A small price of time to pay for the over $5000 our company is gathering through this measure.
Something big to keep in mind if you look into this way of donating. Unlike 401K contributions, these deductions would be "after tax money" meaning you would pay more taxes than usual. Be sure and consider that when deciding.
I can send anyone more specifics if your company would be willing to participate like ours is doing.
I want to do something significant financially but can't simply write a check. I though about the money I have taken out for my 401K each paycheck. I realized I would not miss a month's worth of these deductions in the long run and, if the money was coming out of my check anyway, I would not be negatively affected financially by donating the money. I talked to others in my company and we all agreed it would make sense.
I talked to my 401K company rep and asked him to check into how this could be done without affecting any 401K agreements. Our 401K is set up so we can make monthly changes to our 401K so that part is not an issue (this might be an issue for a company who might only allow quarterly changes).
Many of us are going to take the money we normally contribute to our 401K, still do payroll deductions and send the money to the relief effort. As administrator, I have to create a form for the employee to complete, approving the change and keep everything on file for audit purposes. A small price of time to pay for the over $5000 our company is gathering through this measure.
Something big to keep in mind if you look into this way of donating. Unlike 401K contributions, these deductions would be "after tax money" meaning you would pay more taxes than usual. Be sure and consider that when deciding.
I can send anyone more specifics if your company would be willing to participate like ours is doing.