How Does Your Defined Contribution Plan Compare? A Look at Automatic Contribution Escalation

Four-fifths of non-government plans that have automatic enrollment also offer automatic contribution escalation (80%).  After rising sharply from 2015 to 2016, the prevalence of automatic contribution escalation among non-government plans has remained at about seven in ten for the past two years.  The number of plans with automatic contribution escalation that use an opt-out approach…

How Does Your Retirement Plan Compare?

The Callan Institute conducted its 11th annual Defined Contribution (DC) Trends Survey in the fall of 2017. The survey incorporates responses from 152 plan sponsors, including both Callan clients and other organizations, and highlights key themes and findings from 2017 and expectations for 2018. Over the next few months, SIMA will share these findings so…

IRS Updates Retirement Contribution Limits for 2018

Section 415(d) of the Internal Revenue Code requires that the Commissioner annually examine the dollar limitations on benefits and contributions under qualified retirement plans for cost-of-living increases. Please reference the charts below with the updated IRS limits for 2018. IRS Cost-of-Living Adjustments for 2017 – 2018 IRS Limit 2018 2017 401(k), SARSEP & 403(b) Plan…

401(k) Contribution Limit Increases to $18,500

The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2018. Highlights include: The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), and most 457 plans is increased from $18,000 to $18,500. The catch-up contribution limit for those aged 50 and over remains…

It’s that time of year… We can help

Most retirement plan sponsors are familiar with the plan testing that takes place around this time of year. With acronyms like ADP, ACP, HCEs, and NHCEs, the technical side of 401(k) nondiscrimination testing can easily become overwhelming. There are a variety of plan tests performed each year and there are several different ways to take…