The IRS has recently released the 2019 retirement plan contribution limits.
For super-savers at Chevron Phillips, things are looking up. Here are a few of the most noteworthy changes:
Chevron Phillips employees can now contribute $19,000 (or $25,000 for those over 50 years old) of pre-tax or Roth savings to the Chevron Phillips Savings and Profit Sharing Plan.
How Chevron Phillips Employees Can Maximize Their Retirement Plan Contributions
It’s important to ensure that you are contributing at least 6% of your pay every pay period to receive the full 4.5% company match. At Chevron Phillips, it is easy to miss the opportunity to receive the company contributions, so make sure you do the math every year!
2019 Annual Compensation Limits and Strategic Saving for Chevron Phillips 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 Chevron Phillips 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).
Many Chevron Phillips 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 Chevron Phillips can put away up to $37,600 (or $44,600 if over age 50) between the Chevron Phillips 401(k) and backdoor Roths into tax-preferred retirement accounts. It’s important to keep in mind that these are the maximum numbers and are subject to the income limits outlined in the Chevron Phillips Savings and Profit Sharing Plan.
The 2019 limit adjustments will be advantageous for super-savers at Chevron Phillips 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 4.5% 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 Chevron Phillips specialists.