Our company changed its system of granting bonuses and raises for 2019. Previously we were notified about raises for the next year and received any bonus at the last paycheck of the year.
Going forward and starting with 2019, they're moving the notification to the end of February. So I'll have a decent bonus in my 2/29/2020 paycheck and a raise starting with the 3/15 pay.
Also going forward, bonuses are being granted to everyone based on the company meeting its profit margin goal--either we meet it and everybody gets a full bonus, or there's no bonus. Up until now the bonus has been on a percentage of goal reached basis, so if we reached 80% of our profit margin goal, then we got 80% of the target bonus. So that will makes bonuses harder to come by.
On the other hand, to incentivize us, they gave us a 20% raise across the board (with a note not to expect this every year!). That brings my salary to its highest yet. I figure that I can increase my 401k contribution from 17% of salary where it has been this year (and with the 3% employer match, that's 20%) to a 22% elective deferral (25% with the employer match). As I turn 60 in six months, it's nice to be able to do that increase as I enter the "home stretch" towards retirement (not anytime soon!).
Oh, one more note; I turned 59.5 this week, so if I do have to make any draws from retirement accounts (NOT that I will), they would be coded as "normal distributions" with no 10% early withdrawal penalty. Not that I'm doing that, but nice to know that I can.
The bonus is going to let me pay down debt and get under my original 2019 year-end goal of total debt being at 80k (actually about 78k) just two months late, and despite the large unexpected vet bills I had last year.
Fiscal year end 2019
February 28th, 2020 at 01:31 am
February 28th, 2020 at 03:36 am 1582860989
And I know just what you mean on reaching the 59.5 mark. This is the year I turn 55 so I could tap the 401k without penalty if I left the company. It would not be a good thing to do yet, but I could. I have a website bookmarked with details in case I ever need it. Those milestones are like little safety nets. It's good to have choices.
February 28th, 2020 at 12:56 pm 1582894560
February 28th, 2020 at 01:46 pm 1582897614
Happy birthday! There is something freeing knowing if you needed to, you could draw on your retirement without a big penalty.
February 28th, 2020 at 01:50 pm 1582897838