OAK RIDGE Ah, the good old days! Remember when workers could depend on their employers pension plan to provide sufficient retirement income? What about when retirees could rely on a dependable Social Security system to make up for any shortfall? The golden days of retirement plans occurred not too long ago. But today, a large portion of the burden for retirement savings has been placed on the individual. Instead of pensions, a majority of tomorrows retirees will rely on income from a combination of Individual Retirement Accounts (IRAs) and employer-sponsored plans such as a 401(k). With corporate loyalty falling by the wayside and employees changing jobs with increasing frequency, workers are often left with a bundle of accounts from previous employers and various financial institutions. They are also left without a coherent strategy for the future. Richard Gopin, an Oak Ridge Certified Financial Planner Practitioner with more than 15 years experience, offers these five common mistakes that may shrink your retirement assets, as well as ways to avoid them. Taking rollover distributions directly When changing jobs, workers are sometimes tempted to cash in some or all of their retirement plan assets. In fact, according to the National Endowment for Financial Education, approximately two-thirds of job changers do exactly that. This mistake can be costly for many reasons, but mainly because you may pay income taxes on your pre-tax contributions. You may avoid this common pitfall by transferring the assets into a traditional IRA or another eligible retirement plan. Not contributing enough or not contributing at all A number of companies match employee contributions of up to 6 percent of the employees annual salary. As a result, many employees only contribute that amount to their employer-sponsored retirement plan. However, participants in a 401(k), for example, may contribute up to $15,000 in 2007. Also, for those over 50 years of age can contribute $15,000 plus $5,000 additional catch up contribution. Be sure to check with your employer for any limits set by your companys 401k plan. Contributing the maximum can be an excellent way to help ensure your retirement future. Failing to capitalize on catch-up provisions Those age 50 or beyond, can take advantage of so-called catch-up provisions that allow you to exceed the limits outlined in the previous paragraph. If youre nearing retirement, these provisions may provide a smart way to boost your asset base. Be sure to talk to a financial professional to see what the current provisions are. Taking too much in IRA distributions At age 70.5, the IRS requires you to begin taking distributions from your IRA. But, the IRS considers taking distributions too slowly just as big a mistake as taking them too early. The penalty for withdrawing too little can be severe, with penalties and income taxes adding up to as much as 75 percent on the amount that is not distributed as required. Disorganization According to the U.S. Department of Labor, it is estimated that the average person will change jobs 10 times before retirement. If workers open a retirement account with each employer, they acquire a lot of paperwork to manage. Over time, some people lose track of their paperwork and forget that they had accumulated some pension money with one of their previous employers. If that employer loses track of your address, you may never see that money again. When you rollover your funds after you leave your employer, you reduce the risk of misplacing or losing track of your money; especially when you consolidate your funds into one rollover account. Gopin recommends making a checklist for your retirement planning in 2007. It should include what you plan to do with your 401(k), your IRA and your consolidation of existing accounts. If youre not sure what to include, talk with a financial professional who will take the time to work with you in developing a coherent strategy.