401k Money - Save, Invest, Retire

The IRS has published the annual cost of living adjustments ( IRS Notice 2021-61 ), affecting 2022 contribution limits for retirement plans and retirement-related items. The contribution limits for 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan have been increased. HR managers should inform participants of the higher 2022 limits. This is a good time for your employees to review and update their contribution amounts to take advantage of all available retirement savings opportunities. The 2022 dollar limits for 401(k), 403(b), and 457(b) plan elective deferrals have been raised to $20,500. This is an increase of $1,000 over the 2021 limit of $19,500. Catch-up contributions for those aged 50 or older also remain the same as last year's $6,500. Defined contribution plan limits received a bump to $61,000, an increase of $2,000 above the 2021 limit. The income limits for the Retirement Savings Contributions Credit (Saver's Credit) have been increased by betw

  Not many plan sponsors look forward to an audit and the associated fees, especially as an annual event. Every year plan administrators must file Form 5500, an annual benefit plan report, with the IRS. As part of the filing, federal law requires “large plans” to undergo an annual audit by an independent qualified public accountant. For “small plan” employers, the shift from the short form 5500-SF to the long form 5500 filing, with its 82 pages of instructions and accompanying auditor’s report (and fees), can be quite a shock. Your plan could be heading towards “large plan” status with the help of your former employees. If your plan has 100 or more participants on the first day of the plan year, it is considered a “large plan”. The number of participants is not just a simple count of actively contributing participants in the plan, your former employees could be part of the total. Participant count, for filing purposes, is the sum of all current employees who are eligible, whether

  The IRS has finalized the annual cost of living adjustments ( IRS Notice 2020-79 ), affecting 2021 contribution limits for retirement plans and retirement-related items. While most contribution limits remain unchanged from the 2020 numbers, HR managers should still inform participants of the 2021 limits and encourage employees to contribute. With the growing number of workers facing financial uncertainty, many are postponing retirement. This is a good time for your employees to review their contribution amounts and take advantage of all available retirement savings opportunities. Dollar contribution limits for 401(k), 403(b), and 457(b) plan elective deferrals are unchanged from the $19,500 limit for 2020. Catch-up contributions for those aged 50 or older also remain the same as last year's $6,500. Defined contribution plan limits received a bump to $58,000, an increase of $1,000 above the 2020 limit. The income limits for the Retirement Savings Contributions Credit (Saver's