Retirement Savings Limits Increase for 2015
The IRS has increased the retirement savings limits for calendar year 2015.
For the VCU 403(b) Tax Deferred Annuity retirement savings plan (“TDA”) with TIAA-CREF and/or Fidelity Investments, participating employees may save up to $18,000.00 in calendar year 2015 (increased from $17,500 in 2014). Participants eligible for the age 50+ catch-up may save up to $24,000.00 For employees who participate in the plan throughout the entire year (24 pay periods), the per pay period amount will be $750.00 to reach the $18,000 limit or $1,000.00 to reach the $24,000.00 limit. Both pre-tax and Roth contributions count toward the same annual limit. To change contributions, complete a 2015 Salary Reduction Agreement and return it to VCU Payroll at the address on the form. For changes to become effective with the first pay date in January, forms must be received in VCU Payroll no later than December 19th.
For the VRS 457(b) Deferred Compensation Plan (DCP), participating employees may save up to $18,000.00 in calendar year 2015 (increased from $17,500 in 2014). Participants eligible for the age 50+ catch-up may save up to $24,000.00 For employees who participate in the plan throughout the entire year (24 pay periods), the per pay period amount will be $750.00 to reach the $18,000 limit or $1,000.00 to reach the $24,000.00 limit. Only pre-tax contributions are allowed. To change contributions, participants must log in online at www.vartirement.org/dcp.html or contact the plan directly at 1-877-327-5261. Changes cannot be initiated through VCU.
Special note for VRS Hybrid Plan Participants only: Voluntary contributions to the defined contribution portion of your hybrid plan count toward the 457(b) limit. If you participate in both the hybrid plan and the DCP, make sure the annual total of your voluntary hybrid plan contributions and your DCP contributions does not exceed the 457(b) limit!
Categories Retirement