Barnard & Associates https://www.401kpensacola.com Retirement Plan Specialists, LLC Mon, 26 Apr 2021 18:04:50 +0000 en hourly 1 https://wordpress.org/?v=5.7.1 https://www.401kpensacola.com/wp-content/uploads/2018/07/401Kpensacola-150x150.png Barnard & Associates https://www.401kpensacola.com 32 32 2021 Contribution Limits for 401k Plans https://www.401kpensacola.com/2021-contribution-limits-for-401k-plans/?utm_source=rss&utm_medium=rss&utm_campaign=2021-contribution-limits-for-401k-plans Mon, 26 Apr 2021 18:03:41 +0000 https://www.401kpensacola.com/?p=2658 The IRS has released the 2021 Contribution Limits for 401(k) and other retirement plans. IRS Notice 2020-79 was issued on October 26, 2020. Participants of 401(k) and 403(b) Plans will be able to defer up to $19,500, and, if age 50 or older, an additional $6,500 in catch-up contributions. These amounts are unchanged from the 2020 limits.

For 401(k) Plans which also have Profit Sharing provisions, the maximum allocation for each participant will be $58,000 (increased from $57,000). This includes 401(k) deferral, matching and forfeitures allocated. The catch-up contribution is over and above for a maximum of $64,500 for those aged 50 or older.

Participants in a SIMPLE IRA will be able to contribute up to $13,500, and, if age 50 or older, an additional $3,000 in catch-up contributions. These amounts are unchanged from the 2020 limits.

IRA contribution limits will be unchanged. The maximum deductible IRA contribution will be $6,000, and, if age 50 or older, an additional $1,000 in catch-up contributions. These amounts are unchanged from the 2020 limits.

The Social Security Taxable Wage Base will increase to $142,800.

]]> 2019 Dollar Limitations https://www.401kpensacola.com/2019-dollar-limitations/?utm_source=rss&utm_medium=rss&utm_campaign=2019-dollar-limitations Fri, 04 Jan 2019 23:43:28 +0000 https://www.401kpensacola.com/?p=2442 2019 DOLLAR LIMITATIONS

The IRS has announced the retirement plan limitations for 2019.  Limitations which apply to Pension Plans (including Profit Sharing and 401(k) Plans) for the Year 2019 are:

Annual Compensation Limit for Plan purposes $280,000 (increased from $275,000)
Highly Compensated Employee Threshold $125,000 (increased from $120,000)
Maximum Elective Deferrals for 401(k) $  19,000 (increased from $18,500)
Catch-Up Contributions

for employees age 50+

 $    6,000 (no change)

 
Maximum Elective Deferrals for SIMPLE plans $  13,000 (increased from $12,500)
Catch-Up Contributions

for employees age 50+

 $    3,000 (no change)
IRA or Roth IRA Limit $    6,000 (increased from $5,500)
IRA or Roth IRA Catch-Up Limit $    1,000 (no change)
Social Security Taxable Wage Base $132,900 (increased from $128,700)

For clients with 401(k) and Profit Sharing Plans, the “maximum annual addition” to any participant for combined plans is $56,000 (increased from $55,000).  Maximum annual additions do not include Catch-up Contributions.

]]> Can I still set up a retirement plan for my business and get a tax deduction for 2018? https://www.401kpensacola.com/can-i-still-set-up-a-retirement-plan-for-my-business-and-get-a-tax-deduction-for-2017/?utm_source=rss&utm_medium=rss&utm_campaign=can-i-still-set-up-a-retirement-plan-for-my-business-and-get-a-tax-deduction-for-2017 Thu, 03 May 2018 22:32:35 +0000 http://www.401kpensacola.com/?p=1782 Yes, you can! You can set up a Simplified Employee Pension (SEP) up until the due date of your tax return, including extensions! You must contribute for each eligible employee. You can set up a SEP using IRS Form 5305-SEP.  Your contributions are tax deductible, and you are saving for retirement.

A SEP or SIMPLE IRA is a great starter plan.  A SIMPLE IRA cannot be set up retroactively for 2018 but now is a great time to get started for 2019.

If your business has outgrown is SIMPLE IRA, it’s time for a 401(k) Plan.  Call me today and let’s get started!

]]>