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.

 

 
 

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 2020 2021

Annual Compensation Limit

$285,000

$290,000

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.

$19,500

$19,500

"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

$6,500

Maximum annual elective deferrals for employees who turn age 50 by last day of calendar year.

$26,000

$26,000

Maximum annual addition through a defined contribution plan without an employee deferral provision, i.e., profit sharing plans.

$57,000

$58,000

Maximum annual addition through a profit sharing plan that has a 401(k) or 403(b) feature for employees age 50 or over.

$63,500

$64,500

Income limit used in determining highly compensated employees
"HCE" in 2020 will include an employee paid more than $130,000 in 2019
"HCE" in 2021 will include an employee paid more than $130,000 in 2020

$130,000

$130,000

Social Security Wage Base

$137,700

$142,800

Contact Us

CONTACT INFORMATION

BOISE OFFICE

2888 W. Excursion Lane
 Meridian, ID 83642

Phone: 208-344-7900