FiduciaryShield was created to partner with business owners. You can count on us to help administer your retirement plan, keep your fees reasonable, and ensure you meet your fiduciary responsibilities.
FiduciaryShield offers full-service administration for retirement benefit plans. We can act as your Third Party Administrator and Recordkeeper.
You may note that the derferral limit increases to $18,500 and maximum limitation for defined contribution plans moves to $55,000 up from the 2017 limit of $54,000. The limitation on the annual benefit of a defined benefit plan goes up from $215,000 in 2017 to $220,000 in 2018. The Social Security Wage Base also increased to $128,000.
The True Cost of Employee Turnover
In today’s business environment, hiring and retaining quality employees is more important than ever. Studies show the cost of replacing an employee is typically equal to 16 to 20 percent of the employee’s annual salary. In addition to the monetary cost, turnover damages morale and requires you to spend time:
- Advertising job openings
- Conducting interviews, screening, and hiring employees
- Training and onboarding your new employee
- Dealing with loss of productivity due to the “learning curve”
- Handling potential errors and customer service problems
A quality retirement plan and benefits package is proven to lower employee turnover and will help you attract the right people when the time comes.
Plan Contribution Limits
The IRS has released the 2019 cost of living adjustments to retirement plan limits. Not all of the 2018 limits changed. You will notice some remained the same as the current 2018 limits. There are some important updates. Here is a breakdown of the limits:
|Employee Elective Deferral Limits – 401(k), 403(b), & 457||$19,000||$18,500|
|Catch-Up Contribution Limit||$6,000||$6,000|
|Defined Contribution Maximum||$56,000||$55,000|
|Annual Compensation Maximum||$280,000||$275,000|
|Highly Compensated Employee||$125,000||$120,000|
|Defined Benefit Maximum Allowable Benefit||$225,000||$220,000|
|Taxable Wage Base||$132,900||$128,400|