2015 IRS Contribution Limits

Are you looking for how much you can increase your 2015 retirement plan savings?

I have created a place that you can go to check out the contribution limits for your desired retirement vehicle (i.e. IRA, 401k).  Please check out my Pinterest board, IRS Contribution Limits 2015, at http://www.pinterest.com/chrisgurneyerpa/irs-contribution-limits-2015/.

Thanks for reading and have a wonderful day!  Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.  You can follow me on Pinterest at http://www.pinterest.com/chrisgurneyerpa/.

2015 Retirement Contributions

Getting ready for the new year?  It is a great time to adjust your retirement contributions for 2015. The Internal Revenue Service (IRS) has a list of the new limits on their website located at http://www.irs.gov/uac/Newsroom/IRS-Announces-2015-Pension-Plan-Limitations;-Taxpayers-May-Contribute-up-to-$18,000-to-their-401(k)-plans-in-2015. Do you have an IRA? In general, you can make contributions up to $5,500. Do you have a 401(k) or 403(b) plan? You can up your contributions to $18,000. Older employees may be able to contribute up to $6,000 more. However, your plan may have additional limits that might restrict you to a lower number so be sure to check with your benefits department.

Happy Holidays and Happy New Year!

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Mid Year Contribution Check

Earlier this year, I discussed contributions to your retirement plan.  Are you working more than one job and able to contribute to multiple plans?  Have you switched employers this year and able to make contributions to more than one plan?  The IRS holds you responsible for ensuring you do not put too much in as employee contributions during a calendar year.  If you exceed the limit, you are responsible for taxes.  The IRS issued an industry newsletter pointing out a resource on their web site that would be of better use to many participants.  The article is located on their website at http://www.irs.gov/Retirement-Plans/How-Much-Salary-Can-You-Defer-if-You’re-Eligible-for-More-than-One-Retirement-Plan%3F.  If you have already exceeded the limit, I recommend going to your current employer's plan contact and have them help you with the return and correction process.

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Your 2013 Contribution for Retirement

Happy new year!  Have you adjusted your retirement plan contributions yet? The Internal Revenue Service (IRS) has a list of the new limits on their website located at http://www.irs.gov/uac/2013-Pension-Plan-Limitations. Do you have an IRA? In general, you can up your contributions to $5,500. Do you have a 401(k) or 403(b) plan? Likewise, you can up your contributions to $17,500. Older employees may be able to contribute more. However, your plan may have additional limits that might restrict you to a lower number so be sure to check with your benefits department.

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Retirement Plan Help - Gov't Agencies

Where do you go for help?  I always suggest starting with your plan administrator with any questions.  What happens if it is clear there is a problem with your retirement plan account and you need help because the plan administrator is not helping or appears to be acting shady?

Briefly, I wanted to go over different government agencies that may be able to help you.

For all qualified retirement plans regardless of type, the Internal Revenue Service (IRS) and Department of Labor (DOL) can be of help:
Employee Benefits Security Administration (EBSA) of the DOL http://www.dol.gov/ebsa/publications/Filingretirementclaim.html
IRS http://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1


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Summary Annual Report (SAR) for Your Retirement Plan

What is the Summary Annual Report (SAR)? Once a year, you likely receive a one or two page document for your retirement plan entitled Summary Annual Report. What is it?

Every qualified retirement plan is required to annually report with government agencies. They submit a  form each year and generate an SAR to distribute to plan participants. The SAR is required to be distributed to participants (active and terminated) along with other individuals (death beneficiaries and alternate payees from Qualified Domestic Relations Orders) entitled to benefits under the plan.

The SAR is an aggregate or plan-level summary.  It does not tell you how much is in your account.  So what value is it to you?  The form gives you information about the plan administrator with contact information.  You should already have this information. The form also gives information on obtaining the full form from the Department of Labor (DOL). You are entitled to a copy if you want, but you will not receive much useful information from doing so.

In general, it does not tell you a lot. However, it can warn you regarding potential problems. It is key that you compare expected activity to the year reported on the SAR. If you are a participant in a Roth or 401(k) account who made contributions during the year, employee contributions of $0 is a big red flag.   If you are a participant who rolled over funds from an old retirement plan during the reporting year and you see $0 for rollovers from other plans, that is a big red flag. I also suggest reviewing your statements first. If you see the contributions on your statements and the time frames match up, the SAR likely has a reporting error. I would still recommend following up with your contact at the plan administrator since they may need to file a corrected form with the government.

Let's say you rolled over $100,000 to your current employer's plan from the profit sharing at your last employer during the 2011 calendar year. You see the 2011 calendar year statements and SAR both show $0 in rollovers for that new plan. Your prior employer's statement shows the funds went out and you received an IRS Form 1099-R for the 2011 year. Your plan administrator denies receiving the funds and the old company's plan says the same thing. You may wish to escalate the situation to the Department of Labor's EBSA office or the IRS.


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Retirement Benefits After a Job Loss

If you have left a job recently, you may have concerns over retirement and health benefits.  The Department of Labor has a great resource located on their website at http://www.dol.gov/ebsa/publications/joblosstoolkit.html#.UHc9irS8_ww.  I recommend taking a look if you haven't already done so!  FYI Includes a Spanish-language resource.

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