January 2014 > UTSaver Limits
New Year, New Saver's Credit Limits for UTSaver Plans
Happy New Year!
With the arrival of 2014 comes a new opportunity to contribute to your UTSaver Retirement Program savings plans. The annual contribution limits for the UTSaver 403(b) Tax Sheltered Annuity (TSA) and the UTSaver 457(b) Deferred Compensation plan (DCP) will remain the same for 2014 at $17,500. If you are over 50 the annual limit is $23,000. Catch up provisions for those with 15 years of UT System Service remain the same.
This means that UTSaver participants can continue to save money before taxes this year starting with as little as $15.00 a month, and can contribute as much as $1,916.16 each month, per plan! For those participants who wish to save money after taxes, they can also save up to $1,916.16 per month with the UTSaver Roth TSA.
Since individual circumstances vary and catch up provisions may apply, be sure to contact your institution’s HR or Benefits Office to have your contribution limit calculated for you. This will ensure you can maximize your saving opportunities.
Although the UTSaver TSA and DCP limits did not increase for 2013, the income limit to qualify for the saver’s credit (also known as the retirement savings contribution credit) for low and moderate income workers did increase. For 2014, the qualifying income limit increased from $59,000 to $60,000 for married couples filing jointly and from $44,250 to $45,000 for heads of household. For married individuals filing separately and for single individuals, the qualifying income limit increased from $29,500 to $44,250.
Don’t wait! Make a New Year’s resolution to save today!
To learn more about any of the UTSaver plans, visit the UT Retirement Program webpage at www.utretirement.utsystem.edu.