Investing Your Lump Sum

A guide to help you invest.

Your payment to encourage savings is scheduled for November 30.  If you're thinking of setting up a retirement account, or already have one, here are a couple of things to remember.  

If you already make a contribution to the 403(b) SRA or 457(b) and wish to increase it to include the November lump sum payment, enter the TOTAL AMOUNT TO BE DEDUCTED, not just the amount of the increase. You must change this amount back to the October amount or the new amount will be deducted in your December 30 pay, as well. It does not automatically revert back!

If you do not already contribute, the amount you elect to contribute from the November lump sum payment will continue to be deducted with the December paycheck and beyond. Again, you will need to make a second election to lower or cancel the adjusted amount for the December 30 paycheck or it will continue to be deducted.

Investing is optional.  If you do nothing, you get the lump sum added to your regular pay and it will be taxed accordingly.  You may want to increase the amount of your withholding (W4) for the November payroll so you are not taxed at the higher rate.  However, you must remember to change it back for December's pay.

 Suzanne Drews Giddings  Cell# 248-310-2761 is happy to speak to individual House Officers who have questions.

Lump Sum Investment Tool Kit