Plan Sponsors

The Retirement Benefits Department strives to provide information to our clients that is beneficial to their unique plan while ensuring the plan is in compliance.

Why offer a 401(k) Plan

401(k) plans are a recruiting tool.

Candidates choosing between two companies are more likely to choose the company with a retirement plan.

401(k) plans help reduce employee turnover.

Offering a 401(k) plan shows that employers care about their employees and helps them stay more competitive in the marketplace. Employee retention means spending less money on recruiting.

401(k) plans help save on small business taxes.

Small businesses may be eligible for a special $500 tax credit the first three years of the plan. Tax deductions for employer contributions are also an incentive.

401(k) plans are simple to set-up and maintain.

Plan administration requires minimal time and very little paperwork. Employees have access 24/7 to their online accounts and a retirement specialist is just a phone call away.

401(k) plans contribute to the economy.

When employees are equipped with the tools to retire comfortably they contribute to building a healthy economy and a society of people with more disposable income.

Federal law requires that all fiduciaries of pension and/or profit sharing plans be bonded. The law reads that everyone who has direct or indirect control over the plan is a fiduciary. Therefore, each member of the retirement committee, the members of the Board of Directors and each individual trustee must be bonded.

Type of Bond

The bond must be a surety bond, which provides protection to the plan and trust against loss by acts of fraud or dishonesty on the part of the person(s) bonded.

Amount of Bond

Provided that at least 95% of the plan assets are invested in “qualified plan assets”, the minimum amount of the bond (calculated at the beginning of each plan year) is the greater of $1,000 or ten percent (10%) of the plan assets. The maximum amount of the bond you need is $500,000. If you have more than one plan, the assets of the plans may be combined to determine the amount of coverage.

Qualifying Plan Assets

Qualifying plan assets include but are not limited to the following types of investments: (a) qualifying employer securities, (b) participant loans, (c) assets held by a regulated financial institution (i.e., registered mutual fund), and (e) investments and annuity contracts issued by an insurance company.

If plans assets include investments other than those described above, please contact The Pension Studio so that we can assist you in determining if there are additional bonding requirements. Failure to comply with the additional bonding requirements can result in additional administrative burden and expense. This includes being required to obtain a written opinion from and independent public accountant, which must accompany the annual 5500 Form.

Securing the Bond

You can usually purchase an ERISA Fidelity Bond through your company’s property insurance agent.

Colonial Surety provides ERISA Fidelity Bonds online without having to complete a time-consuming application.

For a quick price quote click here:

Contribution Limits

Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the "plan year" as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.

Limitation	2022	2023
Annual Compensation Limit	$305,000	$330,000
Maximum annual elective deferrals under 401(k), 403(b) and governmental 457(b) plan participants for employees under age 50. These limits also apply to Roth deferrals.	$20,500	$22,500
"Catch-up" contribution amount in 401(k), 403(b) and governmental 457(b) Plans for employees who turn age 50 by the last day of the calendar year. These limits also apply to Roth deferrals.	$6,500	$7,500
Maximum annual elective deferrals for employees who turn age 50 by last day of calendar year.	$27,000	$30,000
Maximum annual addition through a defined contribution plan without an employee deferral provision, i.e., profit sharing plans.	$61,000	$66,000
Maximum annual addition through a profit sharing plan that has a 401(k) or 403(b) feature for employees age 50 or over.	$67,500	$73,500
Income limit used in determining highly compensated employees "HCE" in 2022 will include an employee paid more than $130,000 in 2021 "HCE" in 2023 will include an employee paid more than $135,000 in 2022	$135,000	$150,000
Social Security Wage Base	$147,000	$160,200

Contact Us

CONTACT INFORMATION

BOISE OFFICE

2888 W. Excursion Lane
Meridian, ID 83642

Phone: 208-344-7900 Retirement Direct Line: 208-947-1259