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Understanding 401(k) contribution limits can be confusing even sometimes overwhelming. They are, however, essential to know. Below is a break down of important contribution limits that help employees determine whether their savings are on track or if there is an opportunity to catch up. The annual contribution limit is a great goal to keep in mind. It also encourages individuals who are able to defer additional funds into retirement savings to take advantage of doing so. 2024 2023 2022 Employee Contribution Limit $23,000 $22,500 $20,500 Employee Catch-Up Contribution (For employees aged 50 and...

Summary of Key retirement and Tax Provisions On December 29, 2022, the Consolidated Appropriations Act of 2023 was signed into law. The Act, referred to as SECURE 2.0, includes important provisions affecting retirement savings plans. These provisions offer many new benefits to employers and employees which are designed to make it more attractive for employers to offer retirement plans and to improve retirement outcomes for employees. Below is a summary of selected provisions with potentially broad effects. Employers may need to consult with appropriate legal counsel and other professionals to...

Study reveals plan participants are on a positive trajectory, aided by auto features Being able to replace working income with income generated from retirement savings is the essential definition of retirement readiness. The percentage of working income that an individual may need in retirement will vary, depending on a number of factors, such as whether or not they will still have a mortgage, the amount of their Social Security benefit, their tax bracket, variable healthcare costs, lifestyle choices and having income from part-time work, among others. When projecting retirement income needs...

The list of employee financial concerns includes stressful personal situations that distract employees’ attention from the work at hand. Thirty-nine percent of employers say that’s the item of most concern to employees, followed by increasing health care costs at 34% and the expenses and pressures of caring for family members (24%). Lackluster retirement savings come in sixth on the list, with 18% of employers choosing it as either the number one or number two issue for their employees. Reasons employers offer financial wellness programs To address these employee concerns, many employers — 70%...

A recent survey of retirement plan participants shines a light on their positive perspectives — which can help inform plan changes you may be considering. Released in October of 2021, American Century’s 9th Annual Survey of Retirement Plan Participants found that more workers are optimistic about their futures in 2021 than they were in 2020. Not surprisingly, following more than a year of dealing with the pandemic, participants are now more positive about saving, risk and expectations. Because it’s the start of a new year, now may be an opportune time to discuss the findings with your plan...