In 2024, you can contribute up to $69,000 into a solo 401(k). If you are 50 or older, you can also make a $7,500 catch-up contribution ($76,500 in total). These limits encompass both the employer and employee contribution amounts for a solo 401(k). With a SEP IRA, you can also contribute up to $69,000. However, there are restrictions — contributions must not surpass 25% of compensation or $69,000, whichever is lower. And for self-employed individuals, the limit is the lesser of 20% or $69,000. An additional consideration for SEP IRAs is that employers also need to contribute an equal percentage of compensation for all eligible employees.
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CERTIFIED FINANCIAL PLANNER™ | Automotive & Defense Manufacturing 401(k) Specialist | Personal financial planning offered to engineers and business owners
Does your 401(k) plan require an amendment to add auto-enrollment for the 2025 plan year? Beginning January 1st of 2025, 401(k) plans must have an auto-enrollment feature with the initial contribution at least 3% and no more than 10%. Contributions increase by 1% each year until reaching at least 10%. Of course, there are always exceptions to the rules: 1. Plans established before Dec. 29, 2022 2. SIMPLE 401(k) plans, Sec. 414(d) governmental plans, and Sec. 414(e) church plans. 3. Any plan maintained by an employer that has been in existence for less than three years. 4. Any plan maintained by an employer with 10 or fewer employees. If you are seeking advice on how to add this, and other Secure 2.0 features to your existing 401(k) plan, we are here to help! You can reach us at www.enderswm.com #autoenrollment #retirementplans #401k #definedcontributionplans #retirementiscool https://lnkd.in/gHw8KP_8
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📣Boost your 401(k) contribution rate by at least 1 percentage point if you’re not yet saving 10%. ✅At a minimum, you want to save 10% of your salary in your 401(k). That’s the minimum. I think 15% is a smarter target. (These percentages are the combined total from your salary contributions and your employer match.) ✅If you’re not yet at 10% or 15%, boost your contribution rate by at least 1 percentage point right now. Don’t tell me you can’t afford it. You can’t afford not to do this. And I am confident a 1 percentage point increase is something you can adapt to. ✅Every year you are to boost your contribution rate by at least 1 percentage point until you reach your target rate. #401kTips #RetirementSavings #FinancialPlanning
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For calendar year 2024, employees can contribute a maximum of $23,000 into their 401(k)s and similar plans, representing just a $500 increase from 2023. For combined contributions on the part of employees and employers, the total annual limit has increased from $66,000 in 2023 to $69,000 in 2024. - Source : Internal Revenue Service #retirementplanning #2024planning
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Did you know that a recent survey found that over 80% of 401(k) plans now offer employees the option of making Roth 401(k) employee contributions? ✅ More and more employees are now taking advantage of that opportunity. Here are five things to keep in mind about Roth 401(k)s if your plan offers them:
Five Things to Know About ROTH 401(k)s | Assured Concepts Group
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Have you switched jobs during the year!? This COMMON miss could cost you. 🚨🚨🚨 For most employee 401K plans when you elect MAX it will stop your contributions at the maximum amount. The annual employee max for 2024 is $23,000, under 50 years old, or $30,500, over 50 years old. HOWEVER, if you leave an employer and go somewhere else they won't know how much you contributed to a prior plan and won't be able to stop your contributions. So if you contributed $20K to a prior 401K then you go to your new employer and contribute another $10K that same year, you'll be OVER the limit. If you catch it before the tax filing you'll have to amend the W2 and withdraw the funds. If you don't, you'll pay a penalty and taxes on the earnings for every year it is left in there. 💡 So, when you're switching employers make sure you figure out how much you contributed to the prior 401K and calculate how much you have left to save for the rest of the year. #financialplanning #retirementplanning #newjob
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Can Employers Legally Withhold 401k Match After Approval Delay? Answers: https://lnkd.in/gRdXVtuM #401kMatch #EmployeeBenefits #Compensation #FinancialPlanning Hey there! So, I’ve been pondering a situation that some folks may find familiar – particularly those who rely on their employer’s 401k match as part of their compensation package. Imagine this: You usually look forward to seeing that 401k match hit your paycheck in June, but this year, crickets. 🤔 When you ask about it, the response is that it's awaiting approval from the executive committee. Now, that leads me to wonder: What’s to approve? Isn’t this part of the deal when you start working there? Is there a legal obligation for employers to fulfill the match? Have they already benefitted from tax credits by promising this match? It feels a bit frustrating, doesn’t it? Your employer might be having a change of heart or simply a delay in their process, but it leaves employees in the lurch, especially when they’ve counted on that match as part of their financial planning. Pain Points: Lack of clarity: Employees deserve to know where their compensation stands. Financial uncertainty: Missing that...
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Are you a business owner and looking to open a Solo 401(k)? 💼 There is still time to open a plan for 2023 thanks to the SECURE and SECURE 2.0 Act revisions! A business owner acts as an employer and employee, therefore can open a new solo plan for 2023 after the first of the new year with both elective deferrals and employee contributions by the due date of the individual's tax return. Check out the below article to learn more! 🌟
SECURE 2.0 RELAXS RETROACTIVE SOLO 401(k) RULES | Ed Slott and Company, LLC
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Looking to implement a 401K plan? Both employers and employees can enjoy tax advantages. Employer contributions are tax-deductible, and employees benefit from tax-deferred growth on their contributions. WIN-WIN! #taxseason #smartmoney
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Can Employers Legally Withhold 401k Match After Approval Delay? Answers: https://lnkd.in/gTCeVRKP #401kMatch #EmployeeBenefits #Compensation #FinancialPlanning Hey there! So, I’ve been pondering a situation that some folks may find familiar – particularly those who rely on their employer’s 401k match as part of their compensation package. Imagine this: You usually look forward to seeing that 401k match hit your paycheck in June, but this year, crickets. 🤔 When you ask about it, the response is that it's awaiting approval from the executive committee. Now, that leads me to wonder: What’s to approve? Isn’t this part of the deal when you start working there? Is there a legal obligation for employers to fulfill the match? Have they already benefitted from tax credits by promising this match? It feels a bit frustrating, doesn’t it? Your employer might be having a change of heart or simply a delay in their process, but it leaves employees in the lurch, especially when they’ve counted on that match as part of their financial planning. Pain Points: Lack of clarity: Employees deserve to know where their compensation stands. Financial uncertainty: Missing that...
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Planning your 401(k) contributions for next year? Maximum employee contribution for 2024 is $23,000 (up from $22,500 in 2023) and the catch up contribution amount for those 50 and older is $7500 (unchanged from 2023).
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