Securian Retirement’s “Tax Holiday” Program Urges Employees To Save More
Contact: Maggie Jensen, Media Relations Consultant, 651-665-7558
St. Paul, MN, March 10, 2011 – A Social Security payroll tax deduction in effect this year lowers the rate from 6.2 percent to 4.2 percent. The rate rises again in 2012 and Securian Retirement is urging employees to use the 2011 “tax holiday” to channel that two percent into their retirement plan accounts.
“The two percent reduction lasts only one year,” said Rick Ayers, vice president, Securian Financial Group, Inc. “The sooner employees start saving that two percent, the greater an effect it will have on their retirement account balances.”
Deferring the two percent tax savings into a retirement plan account boosts the well-known advantages of defined contribution – 401(k) – plans that include tax deferment and growth potential. And, because inertia often plays a role in employee retirement account management, the two percent savings increase likely will remain in place long after year’s end.
The campaign uses statement inserts and the web site to show employees how the two percent could grow over the years. There’s also a place on the web site where employees can easily opt into the additional two percent savings.
Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nation’s largest financial services providers, it is the holding company parent of a group of companies that include Minnesota Life Insurance Company.
This information should not be considered as tax advice. You should consult your tax advisor regarding your own tax situation.