We are in the thick of tax season and many are questioning if they were able to find enough tax savings. This is a great time to start considering your savings plan for the coming year. Chances are your employees are thinking the same, so this is the time to educate them on opportunities this year.
The IRS has announced an increase in contribution limits for certain plans and we are excited. Here is what you need to know (and some food for thought):
Defined Benefit Plans: We’ve seen a few limit increases between 2018 and 2019. The limit in 2018 increased to $220,000 and to $225,000 in 2019. This can be a great plan for high earners, especially if you are self-employed!
SIMPLE Retirement Plans: Limit increase over here too! 2019 brings a $500 limit increase. (SIMPLE catch-up limits are still $3,000)
SEP IRAs: These plans could be a fit for those who are self-employed or are small business owners. In 2018 we saw an increase to $55,000 and in 2019 they’ve gifted us another $1,000 which takes the limit to $56,000.
The 401K Catch-Up: Do you have employees age 50+? The contribution limit will stay the same, but it is important for them to know that this does exist and they can sock away $6,000. Even if they turn 50 at the end of the year, they can still contribute and take advantage of this!
At Life, Inc. Retirement Services, we are committed to keeping you in the know so that you can make the best decision for your future and your employees have the same opportunities. Retirement plan solutions are not the same for everyone. We take a comprehensive approach to ensure you are taking full advantage. We know you are busy, and we want you to be able to focus on what you do well so we keep it simple on your end. Set up a call with us today to talk more about how we can set you up to have a great year (and many great years to come)! 614-396-7652