Changes to Federal Tax Withholding for 2018

The IRS recently released updates to the income-tax withholding tables for 2018. This change updates the 2018 tax tables in accordance with the tax reform legislation enacted at the end of the year (HR1). Employers should update their tables as soon as possible, but at least by February 15th. The IRS states that the new law “makes a number of …

401(k) Contribution Limit Increase

On October 19, the IRS announced an increase in the contribution limits for employees who participate in 401(k), 403(b), and most 457 plans. For 2018 the new limit will be increased from $18,000 to $18,500. However, the catch-up contribution limit for employees aged 50 or over remains unchanged at $6,000 annually.

MassMutual RetireSmart Mobile App

MassMutual is dedicated to continuous innovation, with the goal of helping participants retire on their own terms. We’ve been working on some exciting new enhancements for them here at MassMutual, including the launch of MassMutual’s RetireSmart mobile app. The free app is available for Android and Apple devices, and can be found by searching “RetireSmart” or “MassMutual” in the app store. …

2015’s 401(k) Contribution Limit Increases to $18,000

The Internal Revenue Service announced today that contribution limits for 401(k) plans and individual retirement accounts will increase due to cost-of-living adjustments.  The maximum amount of contributions an employee can make to their 401(k) plan is determined each year by the IRS.  “Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met …

Happy 40th Anniversary ERISA

The Employee Retirement Income Security Act of 1974 (ERISA) was signed into law on Labor Day, September 2, 1974 by President Gerald Ford.  This federal law provides protection to participating employees in employer sponsored health and retirement plans. Forty years ago many employers offered employees retirement packages and pensions. Where an employee would work for many years at a company, …

2014’s 401(k) Contribution Limit Unchanged at $17,500

The Internal Revenue Service has announced that contribution limits for 401(k) plans and individual retirement accounts will stay the same in 2014. The maximum amount of contributions an employee can make to their 401(k) plan is determined each year by the IRS. “Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in …

Provide Employee Benefits

Provide Employee Benefits Today’s employees are savvy, informed and confident. They want to work for a company that not only has an HR department that considers them vital to the success of the organization but values them enough to provide an impressive benefits package to help ensure their well-being. Remember, under StaffScapes PEO arrangement, your employees become our employees when it …

Tax Retirement Saver’s Credit

Did you know there is a new government program that will allow you to save for retirement?  The Retirement Savings Contributions Credit allows for up to a $1,000 credit for single individuals and $2,000 credit for married couples for contributions made to 401(k) or IRA programs during the 2010 tax year.  The plan is available for those workers who are …

401k Safe Harbor Provision Changes

The IRS has amended it’s rules on Safe Harbor contributions to allow employers to terminate the match during these hard times. On May 18 the Internal Revenue Service (IRS) published proposed regulations that could provide relief to employers whose plans provide for safe harbor non-elective contributions. The relief allows employers to amend their plan to reduce or suspend future safe …

401k Plan Changes

Tax Treatment of Refunds Changing for 2008 Beginning with the 2008 plan year, ADP and ACP refunds attributable to the 2008 plan year are taxable in the year of distribution. Therefore, for the 2008 plan year, refunds distributed between January 1, 2009 and March 15, 2009 are taxable in 2009, the year distributed (as opposed to the year contributed). Also …