New Contribution Limits Mean New Savings Opportunities for 2013
The Internal Revenue Service announced cost of living adjustments that will affect the maximum contribution limits available to you under the UTSaver Retirement Programs.
Effective January 2013, participants will be able to contribute up to $17,500 to both the UTSaver 403(b) Tax Sheltered Annuity (TSA) and the UTSaver 457(b) Deferred Compensation plan (DCP), an increase of $500.00 annually. Note that TSA limits may vary based on your personal circumstance. Please contact your local benefits office to have your personal TSA limit calculated.
The age 50 catch up remains unchanged at $5,500.00, meaning participants over age fifty can contribute up to $23,000 in both the UTSaver TSA and the UTSaver DCP.
This means that if your salary is high enough and you are over 50, you can contribute $23,000 into both the TSA and DCP for a total of $46,000 of tax-sheltered retirement savings during 2013! Likewise, you can contribute as little as $15.00 a month into the TSA and as little as $20.00 in the DCP.
It’s never too late and no contribution amount is too small to make a difference for your retirement.
To learn more, please visit our website at: www.utretirement.utsystem.edu.