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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Showing posts with label enrolling. Show all posts
Showing posts with label enrolling. Show all posts
Tuesday, December 23, 2014
Monday, June 24, 2013
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.
Thanks for reading and have a wonderful day! Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.
Saturday, September 8, 2012
Participating in a Retirement Plan
On Monday, we commemorated Labor Day. The law that governs retirement plans, ERISA, was signed into law on Labor Day 38 years ago. I find it only fitting that we discuss participating in retirement plans this week. Due to the variety of retirement plans, participation can be an active or rather passive process. If you are in an defined benefit plan or any retirement plan that only allows for employer contributions and you are unable to direct plan investments, you may only need to complete a beneficiary form.
Regardless of your plan type, you should receive a Summary Plan Description (SPD), or a brief summary of the plan document written at a layman level, within ninety days of becoming eligible for the plan. If you direct investments, you will need to make a choice on an enrollment or investment election form. If you are able to make employee contributions, you will also need to make a choice on an enrollment form. Regardless of plan type, you will need to complete beneficiary forms. The form will determine how your vested benefit will be distributed if you die. Sometimes these elections will be on three separate forms or they can all be combined on the same form. As a result, terms other than investment election, beneficiary or enrollment form may be used by your plan administrator.
I would encourage everyone to participate if they haven't already. If you think you should be eligible and you haven't received any paperwork or instruction about how to sign up, a brief call to your benefits department may be useful. They should be able to help you out with signing up or advise you regarding when you should be eligible. If you are not expected to meet eligibility, for example due to hours worked, they should also let you know that. Many employers gladly discuss the plan and/or give out SPD's before participants are not even eligible yet, if an employee is interested. They are not required to, but they often want to share the great benefits that you may qualify for in the future.
Thanks for reading and have a wonderful day! Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.
Regardless of your plan type, you should receive a Summary Plan Description (SPD), or a brief summary of the plan document written at a layman level, within ninety days of becoming eligible for the plan. If you direct investments, you will need to make a choice on an enrollment or investment election form. If you are able to make employee contributions, you will also need to make a choice on an enrollment form. Regardless of plan type, you will need to complete beneficiary forms. The form will determine how your vested benefit will be distributed if you die. Sometimes these elections will be on three separate forms or they can all be combined on the same form. As a result, terms other than investment election, beneficiary or enrollment form may be used by your plan administrator.
I would encourage everyone to participate if they haven't already. If you think you should be eligible and you haven't received any paperwork or instruction about how to sign up, a brief call to your benefits department may be useful. They should be able to help you out with signing up or advise you regarding when you should be eligible. If you are not expected to meet eligibility, for example due to hours worked, they should also let you know that. Many employers gladly discuss the plan and/or give out SPD's before participants are not even eligible yet, if an employee is interested. They are not required to, but they often want to share the great benefits that you may qualify for in the future.
Thanks for reading and have a wonderful day! Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.
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