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2019 401(k) Plan Contribution Limits and Service Model

2019 401(k) Plan Contribution Limits and Service Model

February 04, 2019
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Employer Sponsored Retirement Plan Service Model

Retirement plans can offer great benefits to you and your staff.  They can provide an efficient savings vehicle in addition to tax advantages.  However, as your plan grows, do you have an ongoing system to review and service it?  We have found that the lack of reviews and service can be widespread, sometimes leading to missed opportunities and potential liability to the employer.  In addition each year the contribution limits can change leading to more confusion.  Below are the contribution limits for 2019 and our retirement plan service model with defined roles for all parties involved.... 

To contact us and learn more about our services please follow this link.  NaviPath Partners Contact

401(k) Plan Limits for Year201920182017
401(k) Elective Contribution$19,000$18,500$18,000
Annual Defined Contribution$56,000$55,000$54,000
Maximum Annual Compensation$280,000$275,000$270,000
Catch-Up Contribution$6,000$6,000$6,000
Highly Compensated Employees$125,000$120,000$120,000

◘ Involved Parties:

     * NaviPath Partners, Brian Swilling & Ryan Whitley, Financial Advisors with Waddell & Reed
     * Record Keeper
     * Third Party Administrator (TPA)

◘ Retirement Plan Review Process:

1. Management of Plan Operations
     a. Plan Document Review – [TPA]
          i. Eligibility, Contributions, Match, etc.
     b. Procedural Review – [TPA]
          i. Timeliness of Payroll Deposits
          ii. Loan and Withdrawal Procedures
          iii. Distribution of Summary Plan Description (SPD), Summary of Material Modifications (SMM), and Summary Annual Report (SAR)
     c. Compliance Testing Results – [TPA]
          i. Plan Design Recommendations
     d. 5500 Filing Review – [TPA]

2. Service Provider Selection and Monitoring
     a. Service Activities Performed in last 12 months – [Record Keeper]
     b. Service Activities Planned for Next 12 - 18 months – [Record Keeper]
     c. 408(b)(2) Review – [Record Keeper, TPA, Brian Swilling & Ryan Whitley]
          i. Fees Received by Each Covered Service Provider
          ii. Benchmarking vs. Industry Standard
     d. Annual Plan Review – [Brian Swilling & Ryan Whitley]

3. Investment Selection & Monitoring
     a. Investment Policy Statement Review – [Brian Swilling & Ryan Whitley]
     b. Investment Due Diligence Review – [Brian Swilling & Ryan Whitley]
     c. 404(c) Compliance Review – [Brian Swilling & Ryan Whitley]
     d. Fund Check / Fund Evaluation – [Brian Swilling & Ryan Whitley]
     e. Third Party Research Reports – [Brian Swilling & Ryan Whitley]

4. Participant Communication
     a. Notice Management Review – [TPA]
     b. Participant Disclosures & Compliance Calendar – [Record Keeper]
     c. Participant Retirement Readiness Measure – [Brian Swilling & Ryan Whitley] 

Waddell & Reed is not affiliated with the Third Party Administrators or Record Keepers.  02/19