For Plan Sponsors

New Enrollment Materials Make Saving Easier!

Employees can become overwhelmed with choices during the 401(k) enrollment process. At Trust Point, we have worked hard to simplify that process with a complete redesign of our enrollment print materials and videos.

Our new enrollment guides, available in paper and electronic formats, are colorful, engaging, and concise. The materials were carefully designed with bold headings and helpful graphics that provide at-a-glance information to make decisions even easier.

To further enhance the enrollment experience, a new enrollment video is available as well. The video does a great job of introducing the four decisions employees need to make to enroll in the plan, all in a fun, animated format. We suggest encouraging employees to watch the video on their own before enrolling or presenting the video to groups of employees to help them engage with each other during the enrollment process.

There are two versions of the video on the Resources page of the Trust Point website. Be sure to direct employees to the video that corresponds with the investment options you have chosen for your employees – whether Profile or Target Date Funds. If you need a copy of the new enrollment materials or help with finding the video, please contact your Relationship Manager by calling 1-800-658-9474.

2018 Benefit Plan Limits

Each year, the Internal Revenue Service (IRS) releases its annual limits on benefits and compensation. Knowing and preparing for these limits helps you remain in compliance with federal guidelines. Below is a handy table of the benefit limits for 2018. For additional information, please visit the IRS website.

401(k), 403(b) and 457 Deferral Limit-Maximum calendar year deferrals (including Roth deferrals) to a 401(k) plan $18,500 $18,000
Catch-Up Contribution-Maximum calendar year “catch-up” deferrals (including Roth deferrals) to a 401(k) plan for those age 50 and older in that calendar year $6,000 $6,000
Compensation Dollar Limit-Highly Compensated-An employee is a Highly Compensated Employee (HCE) if they receive annual compensation (in the prior plan year or calendar year) of more than $120,000 in 2017 $120,000 in 2016
Compensation Dollar Limit-Key Employee-“Key employees” in top-heavy plans include officers who have plan year compensation of more than $175,000 $175,000
Annual Compensation Limit-Maximum plan year compensation taken into account for plan purposes $275,000 $270,000
415 Defined Contribution Limit-Maximum limitation year annual additions (excluding “catch-up” 401(k) deferrals for those

age 50 or older) to a participant’s account – lesser of 100% of compensation or

$55,000 $54,000
Maximum Pension-Maximum plan year annual benefit payable through a defined benefit plan $220,000 $215,000
Social Security Taxable Wage Base – Social Security (FICA) tax of 6.2% on (and Social Security permitted disparity level for plan year beginning in) $128,400 $127,200
IRA Contribution Limit-Maximum annual contribution $5,500 $5,500
IRA Catch-Up Contribution Limit-(Age 50 or Older) Additional maximum annual contribution $1,000 $1,000
SEP Employer contributions $55,000 or 25% $54,000 or 25%


Your 401(k) Compliance Calendar

There are many tasks to be completed throughout the plan year to keep a retirement plan in compliance with the Employee Retirement Income Security Act (ERISA). Sometimes, these tasks may seem overwhelming, but when taken apart, they’re much easier to manage. You’ll find most of these tasks are completed by Trust Point’s Retirement Plan Management Team on your behalf. See below for a handy guide to the action items and deadlines for this year. Please note that these dates are based on a plan that uses a Jan. 1 – Dec. 31 plan year.


Action Item What is it? When is it due?
Form 1099R Trust Point mails Form 1099R to plan participants who received distributions in prior calendar year. 1/31
Form 1096 Trust Point transmits Form 1096 to IRS to report income tax withheld from distributions made in prior calendar year. 2/28
Corporate Tax Return or Extension Filing (Form 7004) Deadline to file, with the IRS, for the prior year’s corporate taxes, or to extend the filing deadline to 9/15. 3/15
Employer contributions Make employer contribution to plan by 3/15 to be included with your corporate tax return. (If extension is filed you have until 9/15 to fund employer contributions.) 3/15
Corrective Refunds for failed ADP/ACP Tests Trust Point will issue excess deferral refunds for contributions that exceed the deferral limit to applicable HCEs in non-Safe Harbor plans. 3/15
First-Time RMDs Deadline for plan participants attaining 70 1/2 or retiring in prior calendar year to take their first RMD. 4/1
Corrective Refunds for 402(g) limit excess Trust Point will issue excess deferral refunds (those that exceed the 402(g) limit) to applicable plan participants. 4/15
Form 5500 / Form 5500-SF (without extension Form 5558) Deadline for filing Form 5500 with the DOL without an extension or for filing Form 5558 for extension to file Form 5500. 7/31
Form 8955-SSA Deadline for filing Form 8955-SSA for reporting terminated employees. 7/31
Corporate Tax Return (if extension was filed by 3/15) Deadline for extended filing of corporate tax return with the IRS. 9/15
Summary Annual Report (SAR) Employer mails or emails SAR prepared by Trust Point to all plan participants. 9/30
New Safe Harbor Plan Deadline to establish a new Safe Harbor plan for the current calendar year. 10/1
Form 5500 / Form 5500-SF  (if extension was filed by 7/31) Deadline for extended filing of Form 5500 with the DOL. 10/15
Annual Safe Harbor Notice, QDIA, ACA IRS/ERISA deadline to send out QDIA (Qualified Default Investment Alternative), Safe Harbor, and ACA (Automatic Contribution Arrangement) notices. Trust Point will prepare notices for plan sponsors to send to ALL plan participants. 12/1
First-Time Required Minimum Distributions (RMDs) IRS deadline for applicable plan participants to take their “post-first year” RMDs. 12/31

For Plan Sponsors and Participants

Copy and paste into your company’s employee communication!

How Much Can You Contribute?

One of the distinct advantages of a 401(k) is its high deferral limit. That means you can contribute a significant amount from your paycheck into your 401(k) plan, allowing you to increase your retirement savings rapidly. How much can you set aside? In 2018, the government says you can contribute 100% of your salary—up to $18,500—into your 401(k) if you are able to do so. If you are older than 50, you can contribute an additional $6,000—for a total of up to $24,500. 

Remember, this is only the limit for the amount you personally can contribute. Your company money should not be factored into this amount.

Bottom line? Think about what you can afford to set aside for your retirement. If you can do more, increase your deferral and start ensuring a secure retirement.

 A Tax Credit for Saving? You May Qualify

Can you get free money just by saving money towards your retirement? Yes! If you qualify, you may be eligible for up to $1,000. The Saver’s Tax Credit is a credit designed to give low to moderate income taxpayers incentive to save. To qualify, you must be 18 years or older, not a full-time student, cannot be claimed on anyone else’s tax return, and must meet certain income guidelines. The credit applies to most retirement accounts, such as your 401(k), 403(b), 457 plan, IRAs, Roth IRAs, SIMPLE IRAs, and SEP-IRAs to name a few. To find out if you qualified in 2017 or will in 2018, see the charts below.


2018 Saver’s Tax Credit


Married, filing jointly Head of household

All other filers

50% of contribution Up to $38,000 Up to $28,500 Up to $19,000
20% of contribution $38,001-$41,000 $28,501-$30,750 $19,001-$20,500
10% of contribution $41,001-$63,000 $30,751-$47,250 $20,501-$31,500
No credit More than $63,000 More than $47,250 More than $31,500

2017 Saver’s Tax Credit
Credit Married, filing jointly Head of household All other filers
50% of contribution Up to $37,000 Up to $27,500 Up to $18,500
20% of contribution $37,001-$40,000 $27,501-$30,000 $18,501-$20,000
10% of contribution $40,001-$62,000 $30,001-$46,500 $20,001-$31,000
No credit More than $62,000 More than $44,500 More than $31,000

To Rollover or Not to Rollover? That Is the Question

These days, we are met on television, the internet, and even on the roadways with messages of “We accept 401(k) rollovers” or “Roll over your 401(k) today.” One of the questions that we commonly hear from participants is: “When do I need to take money out of my prior employer’s retirement plan?” Let’s take a look at your options:

 Option 1: Leave the money in the plan. If your balance exceeds $5,000, you have the option to keep your money in the plan! If your balance is less than $5,000, then this option may or may not be available to you. You may be asking, “Why would I keep my money in a plan maintained by my prior employer?” Let’s look at the other options before circling back to this question. 

Option 2: Roll over your balance to your new employer’s retirement plan. You may be able to roll into your new plan as early as your first day on the job or not until you become eligible – each plan can have a different requirement. When considering this option, compare the investment options offered in each plan, the fees associated with each plan, and the available distribution options.

Option 3: Roll your balance over into an existing or new IRA. An IRA can provide a wider array of investment options with less distribution restrictions, but the fees associated with an IRA can sometimes be higher than with those of an employer-sponsored retirement plan. Another key point to consider is that while an employer-sponsored retirement is protected from creditors, protection within an IRA is limited based on state law.

Option 4: Take a cash distribution. Use this option with caution. Although it provides immediate access to cash, this choice can trigger adverse tax consequences, halt the growth of your retirement funds, and inhibit your retirement planning goals. 

As you consider what to do with your balance in a prior employer’s plan, take note of the investment flexibility, distribution availability, tax implications, and overall fees that affect each option. Even the desire to have one, consolidated account to manage can play into your decision. By reviewing these factors, you can choose the option that is appropriate for your specific situation. It might just be that leaving the money in the prior employer’s plan will be your best option! 

For further information, please navigate to our Resources page at or contact a Trust Point Relationship Manager at 1-800-658-9474 to help you make an informed decision.

The 1% Difference

Will increasing your 401(k) deferral by 1% a year really make much of a difference in your account at retirement? The answer is, “Yes!” Imagine the following scenario:

Mary and Jerry both work for ABC Corporation. They earn the same salary, and participate in the company’s 401(k) plan beginning at age 35. ABC Corporation matches $0.50 on the dollar. Let’s take a look at how each person invests: 

Jerry contributes 2% of his paycheck each year. His salary increases 3%, which increases his contributions. He diligently saves for 30 years. 

Mary contributes the same amount as Jerry, 2%, but decides to increase her deferral by 1% each year until her total deferral reaches 10%. She then continues contributing 10% of her pay for the next 22 years.

If we assume a modest 6% return on their investments throughout time, we can see in the chart below that, at retirement, Mary’s account balance is $325,896 more than Jerry’s. That’s the 1% difference!

1 Difference