Monthly Archives: December 2018

Shell Employees Can Save MORE in the Shell Provident Fund 401(k) in 2019

 Published: December 14, 2018

 

The IRS recently released the 2019 retirement plan contribution limits.

 

For super-savers at Shell, things are looking up. Here are a few of the most noteworthy changes:

 

–> Shell employees can now contribute up to $19,000 (or $25,000 for those over 50 years old) of pre-tax or Roth savings to the Shell Provident Fund. 

–> Shell’s limit on after-tax contributions has remained at $9,000, which means employees can contribute up to $28,000 (or $34,000 for those over 50 years old) to the Shell Provident Fund, between pre-tax and non-Roth after-tax savings.

 

How Shell Employees Can Make Tax-Efficient Retirement Plan Contributions

If you are contributing after-tax dollars to the Shell Provident Fund, remember to roll out the after-tax funds at least once annually to a Roth IRA so that you can take advantage of the mega backdoor Roth strategy.

 

Many Shell employees will be able to take advantage of higher contribution limits for backdoor Roths. With the IRA contribution limit now being $6,000 ($7,000 if over age 50), super-savers at Shell can put away $34,000 ($41,000 if over age 50) — between the Provident Fund and backdoor Roths– into tax-sheltered retirement accounts.

 

2019 Annual Compensation Limits and Strategic Saving for Shell Employees

The annual compensation limit for 2019 has increased from $275,000 to $280,000. If you make more than $280,000 in base and bonus compensation for 2019, remember to ensure that you max out your Provident Fund contributions before earning $280,000 of income. After you earn $280,000 of income, you can no longer contribute to the Provident Fund.

 

Shell contributes a 10% match to 401(k)accounts for employees that have been with the company over nine years. Since the annual compensation limit for 2019 is now $280,000, Shell will now cap company contributions to the Provident Fund at $28,000.

 

In 2019, once you begin earning more than $280,000, Shell will make their contributions to the Shell Provident Fund BRP (Benefit Restoration Plan) instead of to the Shell Provident Fund.

 

If 2019 is the first year you expect to make more than $280,000, check that you have an allocation and investment strategy set up for your Provident Fund BRP. The 2019 limit adjustments will be advantageous for super-savers at Shell and it is important to be sure that you make the most of these changes.

 

Willis Johnson & Associates will be working with our clients over the next few months to assist with adjusting contributions based on the new IRS rules. In 2019, we will follow up with clients who are eligible to take advantage of backdoor Roth IRAs to ensure they are on track for success. In the second half of the year–once these clients have reached their max contributions– we will help facilitate after-tax rollouts from their Provident Fund accounts.

 

If you have any questions about the 2019 contribution and compensation limits, please contact your advisor, or schedule a free consultation with one of our Shell specialists.

 


Nick Johnson, CFA®, CFP®

CONNECT WITH ME ON LINKEDIN

 

Nick Johnson believes that financial planning is more than numbers on a balance sheet and a standardized process. People are unique and should be treated as such.

 

As Vice President and Wealth Manager at Willis Johnson & Associates, his goal is to really get to know his clients, all the while providing a proactive approach to comprehensive wealth management.


Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions.

Chevron Employees Can Save MORE in the Chevron Employee Savings Investment Plan in 2019

Published: December 14, 2018

 

The IRS recently released the 2019 retirement plan contribution limits.

 

For super-savers at Chevron, things are looking up. Here are a few of the most noteworthy changes:

 

–> Chevron employees can now contribute up to $19,000 (or $25,000 for those over 50 years old) of pre-tax or Roth savings to the Employee Savings Investment Plan (ESIP).

–> Chevron’s limit on after-tax contributions has remained at $14,600, which means employees can contribute up to $28,000 (or $34,000 for those over 50 years old) between pre-tax and non-Roth after-tax savings to their 401(k).

 

How Chevron Employees Can Make Tax-Efficient Retirement Plan Contributions

If you are contributing after-tax dollars to the Chevron ESIP, consider rolling out the after-tax funds to a Roth IRA at the tail end of the third quarter to take advantage of the mega backdoor Roth strategy. For many Chevron employees that are contributing after-tax, the end of the third quarter is the best time to do the rollout because the Chevron ESIP freezes all contributions to the plan for 90 days afterward.

 

2019 Annual Compensation Limits and Strategic Saving for Chevron Employees

The annual compensation limit for 2019 has increased from $275,000 to $280,000. If you make more than $280,000 in base and bonus compensation for 2019, remember to ensure that you max out your ESIP contributions before earning $280,000 of income. After you earn $280,000 of income, you can no longer contribute to the Employee Savings Investment Plan.

 

Chevron contributes up to an 8% match to employee 401(k) accounts. Since the annual compensation limit for 2019 is now $280,000, Chevron will now cap out contributions to the ESIP at $22,400. In 2019, once you begin making more than $280,000, Chevron will be making their contributions to the Employee Savings Restoration Plan (ESIP RR) instead of the Employee Savings Investment Plan. If 2019 is the first year you expect to make over $280,000, check that you have an allocation and investment strategy set up for your ESIP RR.

 

In addition, many Chevron employees will be able to take advantage of higher contribution limits for backdoor Roths. Since the IRA contribution limit for 2019 is now $6,000 (and $7,000 for those over 50 years old), super-savers at Chevron can put away $34,000 (or $41,000 for those over 50 years old) between the 401(k) and backdoor Roths into tax-preferred retirement accounts.

 

The 2019 limit adjustments will be advantageous for super-savers at Chevron and it is important to be sure that you make the most of these changes. Willis Johnson & Associates will be working with our clients over the next few months to assist with adjusting contributions based on the new IRS rules.

 

In 2019, we will follow up with clients who are eligible to take advantage of backdoor Roth IRAs to ensure they are on track for success. At the tail end of the third quarter–once our Chevron clients who contribute after-tax savings to the Employee Savings Investment Plan have reached their max contributions– we will help  facilitate after-tax rollouts from their Chevron ESIP accounts.

 

If you have any questions about the 2019 contribution and compensation limits, please contact your advisor, or schedule a free consultation with one of our Chevron specialists.

 


Nick Johnson, CFA®, CFP®

CONNECT WITH ME ON LINKEDIN

 

Nick Johnson believes that financial planning is more than numbers on a balance sheet and a standardized process. People are unique and should be treated as such.

 

As Vice President and Wealth Manager at Willis Johnson & Associates, his goal is to really get to know his clients, all the while providing a proactive approach to comprehensive wealth management.


 

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions.

BMC Employees Can Save MORE in the BMC Software, Inc. Savings and Investment Plan in 2019

 Published: December 14, 2018

 

The IRS recently released the 2019 retirement plan contribution limits.

 

For super-savers at BMC Software, Inc., things are looking up. Here are a few of the most noteworthy changes:

 

–> BMC employees can now contribute $19,000 (or $25,000 for those over 50 years old) of pre-tax or Roth savings to the BMC Software, Inc. Savings and Investment Plan.

 

How BMC Employees Can Maximize Their Retirement Plan Contributions

It’s important to ensure that you are contributing at least 5% of your pay every pay period to receive the full 5% company match. At BMC, it is easy to miss the opportunity to receive the company contributions, so make sure you do the math every year! A great resource to assist you is the BMC 401(k) Deferral Calculator.

 

2019 Annual Compensation Limits and Strategic Saving for BMC Employees

The annual compensation limit for 2019 has increased from $275,000 to $280,000. If you make more than $280,000 in base and bonus compensation for 2019, remember to ensure you max out your BMC 401(k) contributions prior to earning $280,000 of income. After you earn $280,000 of income, you can no longer contribute to the 401(k).

 

In addition to the $19,000 of pre-tax or Roth contributions, BMC also allows employees to contribute non-Roth after-tax savings to the BMC Software, Inc. Savings and Investment Plan. If you make $280,000 or more annually, you can contribute up to $23,000 in additional after-tax savings. If you contribute over $23,000, you may reduce the amount of money BMC puts in the plan on your behalf. Lastly, if you are contributing after-tax dollars to BMC’s 401k, remember to roll out the after-tax funds at least annually to a Roth IRA to take advantage of the mega backdoor Roth strategy.

 

In addition, many BMC employees will be able to take advantage of higher contribution limits for backdoor Roths. With the IRA contribution limits now $6,000 (and $7,000 if over age 50), it means super-savers at BMC can put away $48,000 (or $55,000 if over age 50) between the BMC 401(k) and backdoor Roths into tax-preferred retirement accounts.

 

The 2019 limit adjustments will be advantageous for super-savers at BMC and it is important to be sure that you make the most of these changes. Willis Johnson & Associates will be working with our clients over the next few months to assist in adjusting contributions to ensure they get the full 5% company per paycheck match.

 

In 2019, we will follow up with clients who are eligible to take advantage of backdoor Roth IRAs to ensure they are on track for success. We will help facilitate after-tax rollouts from the 401(k) in the second half of the year once contributions have been maxed.

 

If you have any questions about the 2019 contribution and compensation limits, please contact your advisor, or schedule a free consultation with one of our BMC specialists.

 

 


Nick Johnson, CFA®, CFP®

CONNECT WITH ME ON LINKEDIN

 

Nick Johnson believes that financial planning is more than numbers on a balance sheet and a standardized process. People are unique and should be treated as such.

 

As Vice President and Wealth Manager at Willis Johnson & Associates, his goal is to really get to know his clients, all the while providing a proactive approach to comprehensive wealth management.


 

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions.

The Markets (as of market close November 30, 2018)

The Markets (as of market close November 30, 2018)

 

November proved to be a very volatile month for stocks.

 

By the third week of the month, the benchmark indexes listed here had given back just about all of the gains accumulated during the year. However, a spurt during the last week of November helped push stocks higher by the end of the month. Each of the indexes listed here outperformed their October end-of-the-month closing values, led by the large caps of the S&P 500 and the Dow, followed by the Global Dow and the small caps of the Russell 2000. The technology stocks of the Nasdaq edged higher by the close of November, and that index still maintains a sizeable lead year-to-date among the indexes listed here. 

 

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

 

Nevertheless, investors head into the last month of the year anxiously, as fears of a slowing economy and growing international trade tensions will likely temper expectations for steady stock gains moving forward. Energy stocks have been hit by falling oil prices, and the yield on 10-year Treasuries fell below 3.0% as bond prices rose after the Federal Reserve chairman intimated that interest rates may not be increasing as aggressively as previously thought… Click here to read the full article. 

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