Client Login
  • Corporate Retirement Plan and IRA Limits for 2017

    Posted at November 8, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital   On October 27, 2016, the IRS announced the 2017 pension plan limitations in Notice 2016-62. Importantly, the 2017 contribution limits for 401(k), 403(b) and governmental 457(b) remain unchanged at $18,000 and the age 50 catch-up limit remains unchanged at $6,000. Other selected dollar limits from 2015 - 2017 are summarized in the charts below.   Employer Retirement Plans - Contribution Limits   2017 2016 2015 Employee contribution limit for 401(k), 403(b) or 457 plans $18,000 $18,000 $18,000 Catch-up contribution limit for 401(k), 403(b) or 457 plans, if age 50 or over $6,000 $6,000

    • Print this page
    • Comments Off on Corporate Retirement Plan and IRA Limits for 2017

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Retirement: It’s Closer Than You Think

    Posted at September 7, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital    Are you saving enough for retirement? For many people, the answer is no. Fifty-one percent of American workers who have a retirement plan have less than $50,000 in savings and investments (excluding the value of their primary residence or defined benefit plans)1.   It’s hard to predict exactly how much money you’ll need during your retirement years, especially if retirement is a long way off. But if you keep waiting to save more, one day retirement will be right around the corner and you might not be prepared. To help ensure you’ll be retirement ready when ...

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Checking on Your Fiduciary Liability Coverage

    Posted at August 1, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital   Employers that sponsor 401(k) and other defined contribution retirement plans should review their fiduciary liability policies to make sure they provide adequate protection. Here’s some information you may find helpful when you check your coverage.       Fidelity Bonding Is Not Fiduciary Liability Insurance Retirement plan fiduciaries face personal liability exposure that will not be protected by a fidelity bond. The pension law (ERISA) generally requires that every fiduciary of an employee benefit plan and any other person who handles plan money be covered by a fidelity bond. The fidelity bond protects the retirement plan against misappropriation of ...

    • Print this page
    • Comments Off on Checking on Your Fiduciary Liability Coverage

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Catch-up Contributions — Making Up for Lost Time

    Posted at July 5, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital   Saving enough money for a comfortable retirement is probably one of your primary financial goals. But, with so many other demands on your money, it’s easy to get off track. If you are age 50 or older and want to make up for lost time, the tax law allows you to catch up on your savings by contributing extra amounts to an employer-sponsored retirement savings plan and/or an individual retirement account (IRA). Save Through Your Employer Sponsored 401(k) Plan 401(k) plans and their cousins (403(b) tax-sheltered annuities, salary reduction SEPs, 457 governmental plans, and SIMPLEs) allow ...

    • Print this page
    • Comments Off on Catch-up Contributions — Making Up for Lost Time

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Don’t Let That Lump Sum Fool You

    Posted at June 6, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital   Whether you look at New Year’s Day as a fresh start or as just another day, it’s as good a time as any to look at where you are and where you’re headed. One place you’re probably headed, at some point, is retirement! Ideally, you will have significant retirement assets when you’re ready to retire. But don’t be misled by a big lump sum. That money has to last throughout your retirement, and that could be many years. Not Your Grandparents’ Retirement You may be retired considerably longer than your grandparents were. The average life expectancy for ...

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Exception to the Early Withdrawal Penalty

    Posted at May 16, 2016 | By : |

    Qualified plan distributions paid to participants who are younger than age 59 1/2 are generally subject to a 10% excise tax. There are several exceptions to the age-59 1/2 rule, however, most notably the exception for distributions paid to terminated participants age 55 or older.   Under Code Section 72(t)(2)(A)(v), payments made to qualified plan participants who have separated from service with their employer during or after the year they reach age 55 are exempt from the 10% early withdrawal penalty. Here are some practical examples: Example 1: Participant severs employment after age 55 John terminates employment on March 15, 2016, and elects to receive a lump-sum distribution of his 401(k) balance. ...

    • Print this page
    • Comments Off on Exception to the Early Withdrawal Penalty

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Healthy Habits

    Posted at May 2, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital   You probably know how important it is to keep your physical health in good shape. Habits like eating right, exercising, and taking vitamins will help you maintain your health. Did you also know that adopting some healthy financial habits can help you keep your retirement planning in good shape?   Measure Performance Regularly At least once a year, take a look at how your investments have performed. Make sure to check both recent and long-term performance. If your investments have experienced some short-term losses, don’t panic. Temporary performance fluctuations are a normal part of investing. A good ...

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Selecting Your Retirement Plan Default Investment

    Posted at April 18, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital   Lumin Client Asks: Our 401(k) plan has had the same default investment for several years. We want to make sure it is still a suitable choice for our plan. What should we consider when choosing a default investment? Lumin Answers: First, you should decide if you want a default investment that meets the pension law’s requirements for a “qualified default investment alternative,” or QDIA. Using a QDIA in conjunction with automatic enrollment can help you secure liability protection for the investment of employees’ account assets when they have been given the opportunity to direct their ...

    • Print this page
    • Comments Off on Selecting Your Retirement Plan Default Investment

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Choosing a Suitable Vesting Schedule

    Posted at April 4, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital   Choosing a Suitable Vesting Schedule A retirement plan's vesting schedule, which establishes when employer contributions to the plan become non-forfeitable, plays a role in how effective the plan is in helping to attract and retain employees. Employers will want to carefully consider their goals and the available options when selecting a vesting schedule for their plan. What are the available vesting schedules? The simplest schedule — from an administrative perspective — is to allow immediate vesting in 100% of the employer contributions allocated to the employee. However, immediate vesting offers little incentive for employees to stay ...

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

  • Funding Your Retirement: Save Early and Often

    Posted at March 21, 2016 | By : |

    By: Victor H. Hicks II, CFP®, AIF® Owner, Managing Principal Lumin Financial, LLC An Independent Registered Investment Adviser vhicks@lumin.rebuild.digital   When you’re 22 and starting your first real job, retirement may seem light years away. But then, suddenly, you’re 60 and retirement is right around the corner. Preparing for a financially secure future takes time and an appropriate investment strategy for each stage of your life.   Starting Out People who begin putting money away in a retirement account at the beginning of their careers can build a solid financial foundation for retirement. By starting to save in their 20s, investors will have many years to benefit from compounding — the continuing reinvestment of investment earnings. Contributing to ...

    • Print this page
    • Comments Off on Funding Your Retirement: Save Early and Often

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

WordPress Image Lightbox Plugin