1. Max out your retirement contributions
If you haven’t done so already, now is the time to reach the maximum annual contributions to your retirement account. If you have an IRA, the contribution limit is $6,000 per year ($7,000 if you’re age 50 or older). If you have a 457 plan:
- You can contribute up to 100% of your salary if it doesn’t exceed the dollar limit set for the year. In 2022, the contribution limit is $20,500.
- If you are age 50 or older you may contribute up to an additional $6,500 for a total of $27,000.
- There are additional “catch-up” options with higher contribution limits when you’re within three years of your normal retirement age.
The CalPERS 457 Plan is a simple, low-cost way to save for retirement and is available to public agencies and school employers and their employees. If you’re interested in enrolling, visit CalPERS 457.
2. Make tax deductible donations
Keep in mind a few rules when deducting charitable contributions from your taxes. First, the charity must be a qualified organization recognized by the IRS. You can search their database to discover if your favorite charities qualify. Second, the tax treatment rules vary based on the type of donation (cash, non-cash assets, property) and the amount donated. Speak with a tax professional for personalized guidance or visit the IRS website for more information.
3. Pay down debt
Start the new year on the right foot by paying off holiday bills and existing debt. If you owe more than you can repay at this time, see if you can consolidate your debt into one lower-interest account. Watch our Planning Your Financial Future video series for tips on how to create a budget and manage debt.
4. Update your contact information
Stay up to date on the latest CalPERS information by ensuring your contact information, including your mailing address, phone number, and email address, are current. Update your information online through myCalPERS or by calling us at 888 CalPERS (or 888-225-7377).
5. Add or update your beneficiary
Death benefits are paid to the beneficiary we have on file, so it’s important to keep your beneficiary up to date. Certain life events, like a marriage or the birth of a child, can revoke the beneficiary we have on file. Log in to myCalPERS to name, review, or change your beneficiary.
6. Prepare for tax season
Review and update your tax withholding
Because your tax situation can change from year to year, you may want to adjust the federal or California state withholding amounts deducted from your monthly benefit payment or paycheck. Retirees can adjust their tax withholding by phone, fax, or through their myCalPERS account. Active members can reach out to their Human Resources department to update their withholding.
Retirees: Access your tax forms in myCalPERS
- Log in to your myCalPERS account.
- From the My Account drop-down menu, select Mailing Preferences.
- Switch to Online, then click Save.
Learn more about taxes and your pension.
7. Set up your CalPERS Special Power of Attorney
A CalPERS special power of attorney allows a designated person to conduct important business for you, should you become unable to do so yourself. They can make changes to your address, federal or state tax withholding, or retirement benefit elections.