(513) 737-1314

Email Us

Menu

long-term

retirement cont - blog

Retirement Contributions

, , , , , , , , , , , ,

The IRS has issued new 401(k) and 403(b) contribution limits for 2019.  The new limit for 2019 is $19,000 (an increase of $500).  For those over 50, an additional $6,000 can be contributed, for a total of $25,000.  The combined annual limit for employee and employer contributions is $56,000.

The limit for traditional and Roth IRA contributions increases to $6,000 (an increase of $500 and the first increase since 2013).  For those that are over the age of 50, an additional $1,000 can be contributed (for a total of $7,000).

If you participate in a retirement plan at work, the IRA deduction is phased out as your income increases.  The phaseout for single taxpayers is $64,000 to $74,000 and for married taxpayers is $103,000 to $123,000.  Employees must combine contributions made to their 403(b) accounts with contributions made to all other plans in which they participate: 401(k)s other qualified plans, and SIMPLE IRAs. The employee’s total elective deferrals to all of these plans combined cannot exceed the annual deferral limit ($19,000 in 2019 and $18,500 in 2018).

According to the IRS, the income phase-out for taxpayers making contributions to a Roth IRA is $122,000 to $137,000 for singles and heads of household. For married couples filing jointly, the income phase-out range is $193,000 to $203,000.

For more information, visit irs.gov

Long-Term Planning

Long-Term Planning

, , , , ,

As the year comes to a close, hopefully you have completed the budget for 2018.  With the seemingly never-ending demand for funds by each department and ministry, as well as the need to properly compensate the staff, one area that often gets overlooked or neglected is long-term maintenance and equipment replacement.

Whether you plan for it or not, the air conditioning and roof will one day need to be replaced.  Most often, this is discovered late on a Saturday night or early Sunday morning!  However; with proper maintenance, along with planning for replacement, these needs can be met without creating a financial crisis and without having to sit through a Sunday service without heat or air conditioning.

It is suggested that the church should include $2.00 – $2.50 per square foot for building maintenance in the annual budget.  Properly maintained equipment will last longer.  As part of the budget, the church should also set up a reserve fund where money is set aside for replacement of items such as the roof, HVAC, carpet, sound equipment, etc.

By creating a reserve fund, the church will be in a position to cover these expenses without the stress of having to make another appeal or diverting money away from ministry.