The holidays are upon us and before you know it 2017 will be here. If you’re looking for a way to lower your taxable income while saving for your retirement, significant tax savings are available to you right now through your UTSaver 403(b) Tax Sheltered Annuity (TSA) and UTSaver 457(b) Deferred Compensation Plan (DCP). Some key points to keep in mind for the upcoming year:
The base limit for both the TSA and DCP remains $18,000.00 for 2017.
The Age-50 Catch up available to participants 50 or older is $6,000.00.
If you have 15 or more years of service with UT and have an average contribution of under $5,000 per year throughout your participation in the TSA, you may be able to contribute an additional $3,000.
If you are in the last three years before the year you retire, you may also be able to participate in a special catch-up provision in the UTSaver DCP that would allow you to contribute as much as $36,000.
With the holidays fast approaching, it’s good to know that you have flexibility in how much you contribute to your UTSaver accounts each month. For instance, did you know that you can change, increase, or even lower your contributions into the plan each month?
Take Douglas as an example. Douglas is contributing $500 per month, but he knows he’s going to have a lot of extra expenses in December. So Douglas lowered his contribution to $100 for December 2016 and January 2017, and increased it back to $500 per month in February 2017, after he paid his Christmas bills.
The freedom and convenience of the UTSaver retirement programs ensures that you have the tools you need to save as much, or as little, as you need in any given month. Why wait? Get started today by visiting the UT Retirement website.