It’s a New Year – Time to Check in on Your Retirement Savings Plans
Are you planning today so you can enjoy tomorrow? The beginning of each year is a great time to check in on your budget, spending and retirement planning. Here are a few important reminders for you as you look at your finances.
IRS Increases Limits for 2020
The Internal Revenue Service (IRS) increased the 401(k) contribution limits for 2020. You can now contribute up to $19,500 annually – a $500 increase from last year. If you’re age 50 or older, you can contribute an additional $6,500 for a total of $26,000 annually.
Click here to learn more about the IRS changes and to ensure you are maximizing your savings potential.
Timing for 2019 CHI 401(k) Annual Employer Contribution and Match “True Up”
CHI will credit your CHI 401(k) Retirement Savings Plan account with the 2019 annual non-elective contribution, or employer contribution, if it is determined that you are eligible. To be eligible you must:
- Be actively employed on the last business day of 2019, at a qualifying CHI location, group or facility*
- Have been paid for 1,000 eligible hours of service during the 2019 calendar year
More detail about the crediting of your 401(k) account will be provided in late March 2020.
Match “True Up”
All matching contributions go through a year-end “true-up” calculation to ensure that the match earned is based on your total contributions made to the plan during the year, while you are eligible for a match, rather than only the pay periods in which you contributed. So, if you didn’t make a contribution during one or more pay periods (perhaps you met the contribution limits prior to the end of the year), you’ll likely receive a “true-up” in late March 2020.
Please note, compensation you earn and contributions you make to the CHI 401(k) Plan prior to becoming eligible for match contributions (1,000 paid hours) are not eligible for the CHI match. This includes the year-end match true-up.
Make Sure You’re Maximizing the Employer Matching Contribution
In addition to the annual employer contribution – you may be receiving the CHI employer matching contribution in your 401(k) account with each paycheck that you have deferrals.** Remember, to receive the maximum matching contribution of 3.5% of your pay, you must be saving at least 6% of pretax and/or Roth after-tax contributions.***
If you have any questions about your eligibility or how the plan works, call Fidelity at 1.800.343.0860.
* Certain CHI locations are not eligible for the annual employer contribution and/or the amount of any annual contribution could vary depending on your location.
** You must have satisfied the matching eligibility requirements (you have been paid 1,000 eligible hours in your first year of employment or within any calendar year thereafter), and the percentage of this match depends on your individual contribution percentage.
*** The percentage of employer match could vary depending on your employer.