Hi, Helaine: I'm planning to retire in two years, when I turn 70. For the past two years, I upped my contributions to my 401(k), and am now having 26 percent of my gross pay taken out.

I just discovered the payroll company my employer switched to in February of last year calculated my taxes on my gross pay as if I was not taking out money pre-tax for a 401(k) contribution. I may have lost $5,500 in pocket money over the year! This money could have been earning interest in the bank, or I could have used it to help pay my daughters' student loans.

The company is now dumping it in my lap. They told me I should get the money back, but there is no guarantee of it. What can I do? -- My Employer Taketh

Dear Employer Taketh: I totally understand your fury. I'd be angry too. I reached out to David Oransky, a certified public accountant based in Missouri, on your behalf. He says it's unlikely you'll have a problem recovering your funds. As long as your W-2 accurately reflects the situation, you should receive the money back as part of your (obviously) larger-than-normal tax refund for 2018.

But that does beg another question: What if the W-2 is wrong and is coding the money as a post-tax contribution? In that case, you will need to contact your employer and its payroll service, and get them to issue a corrected W-2, something they are most certainly obliged to do.

After that, your next decision will be what to do with the recovered money. I've got no advice on that one. You sound responsible, and I trust you to get that decision right.

(To ask Helaine a question, email her at askhelaine@gmail.com.)

(EDITORS: For editorial questions, please contact Sue Roush at sroush@amuniversal.com)

Dear Helaine: I am almost 62 years old and my husband just passed away. He had a life insurance policy for $50,000. My only debt is the mortgage on our home, which has a remaining balance of $110,000. My monthly payment is a little more than $1,100, and that includes my escrow account covering my property taxes and homeowner's property insurance. I am paying an additional $300 to $400 a month toward the principal.

I am able to live on my current income. After I retire, my pension, 401(k), Social Security and other savings will also leave me enough to live on. I am questioning what I should do with the $50,000. Should I pay down the house mortgage, or put it in another investment account so I can add to my monthly income when I retire? -- Moving Forward With Life

Dear Moving Forward: I want to start by saying I am so sorry for your loss. I'm glad you are moving forward, but I am going to suggest you start by taking a step back.

Give yourself time to grieve. Your life has been irrevocably altered because you lost someone you loved very much. If you make a decision about this immediately, you could very well make the wrong one.

It's possible that a year from now you'll decide you don't want to remain in this home, and you'll want to make a new start. So don't put the money toward your mortgage immediately. Set it aside in a one-year CD, where it will remain secure. If at the end of that period you still love this residence and don't see retiring elsewhere, ask yourself a few more questions: Is this a home I could age in place in? What kind of work will the home need so that is possible? Some of the $50,000 might need to be earmarked for that purpose, or for needed renovations and other home repair maintenance.

I am not against you putting the money toward paying down the mortgage once you answer all those questions. There is a good argument to be made that you should reduce the period of time you will owe money on the home in retirement. The less in the way of monthly bills you'll need to pay when you cease work, the better it will likely be for your finances -- and for your peace of mind.

(To ask Helaine a question, email her at askhelaine@gmail.com.)

(EDITORS: For editorial questions, please contact Sue Roush at sroush@amuniversal.com)

Dear Helaine: A friend of mine took out huge private student loans to pay a hefty tuition bill at a private college. It's several years later, and she's struggling to make even the minimum payments. Yes, she shouldn't have taken out those loans, but what's done is done, and she's trying to figure out how to handle her obligations in a reasonable manner.

Even working both a full-time and part-time job, she is only able to pay the absolute minimum on her loans -- and that's still more than half her take-home pay. Her credit cards are maxed out with things like buying groceries.

Here's the kicker: Her parents co-signed the loans. She looked into bankruptcy and other ways to reduce the loans, but was informed that won't work for her. When she reached out to the bank, they would not renegotiate and told her they would go after her parents.

She says she feels like there is no light at the end of the tunnel for her, that she will be paying the minimum on the loans for the remainder of her life. I hate seeing her struggle with the enormous stress she's under every day trying to make ends meet while paying these loans. Are there any options she might not be aware of to help her manage things, while not forcing her parents, who are near retirement and are not wealthy, to pay her loans? -- A Friend Is in Need

Dear Friend: Our nation's student loan system is a disgrace, and nowhere is this more clear than when it comes to privately issued student loans. While federal loans at least offer income-based and income-contingent repayment plans, private issuers do not need to do such things. At the same time, it's all but impossible to get student loans discharged in bankruptcy court since loan holders need to meet the very tough "undue hardship" standard. The result? Situations like the one your friend is facing. It's unconscionable.

I can't, alas, offer any magic advice that will make it all go away. Instead, I would suggest she meet with a nonprofit debt counselor like the National Foundation for Credit Counseling and see if they can help her come up with a realistic financial plan, or assist in refinancing the debt into a lower-interest loan or one with a longer repayment schedule. The latter would lower her monthly payment, but result in her paying more interest over time. Not ideal, but infinitely better than running up credit card bills buying necessities.

I'd also suggest another meeting with a bankruptcy attorney as it's possible they can more effectively negotiate with the financial institution holding the loan than she could on her own. Finally, she might want to begin thinking about something easier said than done: finding more lucrative employment.

(To ask Helaine a question, email her at askhelaine@gmail.com.)

(EDITORS: For editorial questions, please contact Sue Roush at sroush@amuniversal.com)