retirement Archives - Sycamore Financial Group

Contribution Limits Changing

Hello from Sycamore,

Retirement and health savings plan contribution limits will be changing for the upcoming year. Here is an overview of what you need to know:

401(k), 403(b), 401(a), 457, and federal government Thrift Savings Plans contribution limits will be increased by almost 10% to $22,500.
a. Catch-up contributions for those aged 50 and over will be increased to $7,500 making the total contribution limit $30,000 for the year.
IRA contribution limits will be $500 higher and moved to $6,500.
a. Catch-up contributions for those aged 50 and over will remain the same at $1,000 making the total contribution limit $7,500 for the year.
SIMPLE IRA contribution limits will be raised by $1,500 to $15,500.
a. Catch-up contributions for those aged 50 and over will be increased to $3,500 making the total contribution limit $19,000 for the year.
SEP IRA contribution limits will be moved up to $66,000.
a. SEP IRAs do not allow for catch-up contributions.
Health savings account contribution limits will be higher at $3,850 for individuals and $7,750 for families.
a. Catch-up contributions for those aged 55 and over will remain the same at $1,000 making the total contribution limit $4,850 and $8,750 for the year

We encourage you to forward this email or share this information with anybody that you feel it could benefit. And as always, do not hesitate to reach out with any questions or concerns.

As always, never hesitate to contact us with any questions or concerns.

Thank you for your continued trust and support,

Sycamore Financial Group

***This article is distributed for general informational and educational purposes and is not intended to constitute legal, tax, accounting, or investment advice.***

Maximizing your 401(k) Match

Hello from Sycamore,

Retirement accounts such as a 401(k), 403(b), 457(b), etc., can be useful wealth building tools. These plans can help you achieve your dreams of retirement. Choosing to sign up and contribute to a retirement plan is step number one, ensuring you are getting the full benefits of the plan is step two.

Retirement plans are typically set up in a way that the employee is rewarded for saving their money. For example, many 401(k) plans offer a matching contribution feature to where the employer has elected to match some or all your contributions.

Ensuring that your contribution rate is high enough to receive the full employer match is important. All monies deposited into your account by the employer are in essence, a pre-tax raise. Over time, the additional monies that find their way into your retirement plan could amount to an earlier retirement and/or a higher income in retirement. Check with your plan sponsor to find out if your account is receiving the maximum match so that you are not “leaving money on the table”.

As always, please reach out should you have any questions.

Thanks for your business and trust,

Brent Yard
Investment Adviser
Sycamore Financial Group