The IRS recently released information about retirement plan contribution limits for 2017 and there doesn’t appear to be any major changes. As before, employees have caps for the amount of money that can be directed into retirement savings. While these IRS rules seem pretty cut and dry, that doesn’t easily translate through payroll. Contributions can be made by several different means and employers that can’t keep track of contributions could find themselves in hot water. Control retirement plan contributions by adding this simple, affordable add-on to your financial management system.
As indicated in “IRS Announces 2017 Retirement Plans Contributions Limits For 401(k)s And More,” posted by Ashlea Ebeling on Forbes.com, Congress encourages employees to contribute to retirement savings using a variety of means. The Treasury Department recently announced a few inflation-adjusted figures for certain retirement accounts in 2017 including SEP IRAs and Solo 401ks, Defined Benefit Plans, Deductive IRA phase-outs and Roth IRA phase-outs. Contribution limits for other retirement plans will remain the same in 2017 as they did in 2016, including 401k, 403b, most 457 plans, and the 401k catch-up contribution. The SIMPLE retirement account and catch-up limits remain the same, as does the Individual Retirement Accounts which remains the same for the fifth year in a row.
Don’t Struggle With Retirement Account Management, Deploy Enhanced Retirement Plans
While there are no ground-breaking or record-setting changes for the employees trying to save for retirement, businesses trying to calculate a variety of scenarios are likely still struggling. Calculating different salary requirements for a variety of retirement accounts, managing contributions and matching contributions, while making sure to monitor the caps or limits, is not an easy task. Streamline contribution management with Enhanced Retirement Plans, an easy Microsoft Dynamics® GP Payroll add-on. Create employer-matched contributions, then automate matches based on employee deduction percentages, gross wages percentages or fixed amounts. The automation can follow several plans, as employees can contribute to more than one type of plan. You can use Enhanced Retirement Plans to manage contribution limits, catch-up contributions and improve compliance with a variety of retirement account limitations.
There are many ways an employee can save for retirement and each retirement account has very specific rules for contributions, catch-ups, matching, and reporting. Gain control over retirement plan contributions and save time managing these plans with Enhanced Retirement Plans. Contact Integrity Data for more information about this and other powerful payroll and benefit management solutions.
By Integrity Data, a Microsoft Dynamics GP ISV out of Illinois