The 2018 contribution limit for salary deferrals is $18,500 and includes both pre-tax and after-tax Roth deferrals. This limit is aggregated across plans.
Salary Deferral Limits in Defined Contribution Plans
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403(b) Plans
Are you a benefit plan administrator for a public school district, hospital group, or 501(c)(3) organization? 403(b) plans provide retirement benefits for employees in these specific nonprofit business sectors. Like a 401(k), 403(b) plans allow participants to diversify their investment allocations and tailor their portfolios to meet their long-term retirement goals. Unlike 401(k) plans, 403(b) plans incur limits in terms of investment options and employer matching potential. Leveraging a 403(b) plan to meet your nonprofit business goals can be tricky and complicated. Expand your 403(b) plan knowledge by exploring our 403(b) articles on the Watkins Ross blog. From minimum distribution requirements to IRS updates, Watkins Ross has everything you need to customize your retirement plan and ensure your benefits align with your long-term objectives. Contact us here to learn more about 403(b) plan designs and administration features.
How to Submit a Federal Withholding Tax Deposit
Although you cannot mail a check for a federal withholding tax deposit, there are a few options to submit these payments to the IRS electronically.
Why an Unbundled TPA is Better for a Defined Contribution Plan
Having one provider might seem like an effective and cost-saving solution, but having an unbundled TPA is better for several reasons.
Defined Contribution Plan Termination Procedure
There are various reasons a company decides to terminate their defined contribution retirement plan, but specific steps must be followed.
Protect Your Qualified Plan From RMD Failures
Qualified retirement plans are subject to Required Minimum Distribution (RMD) rules. It’s important to protect your qualified plan from RMD failures.
Attribution Rules – The Family Tree
You don’t get to choose your family, and the same holds true with family attribution rules; but a company’s ownership is critical for accurate testing.
Safe Harbor Contributions for Defined Contribution Plans
There are several types of safe harbor contributions for defined contribution plans. Here is a breakdown of each of the types available.
Required Minimum Distributions From Defined Contribution Plans
Once you reach age 70 ½, the IRS requires you to take money out of your retirement account. This withdrawal is called a Required Minimum Distribution (RMD). Most people don’t give RMDs much thought until they have to take one. Required Beginning Date For defined...
What is a Cross-Tested Plan?
A cross-tested plan is a type of retirement plan which favors older, long-term employees who are closer to retirement age.
Automatic Rollover Rules
The Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) changed the cash-out rule to require that account balances between $1,000 and $5,000 must be rolled over to an individual retirement account (“IRA”). This only applies if the plan sponsor makes...