Human Resources
Retirement Investors' Club (RIC) 403b Program
Employee Contributions to the 403b
When you participate in the Retirement Investors' Club (RIC) 403b Program, pretax contributions (in the amount you choose) are automatically made to your 403b account through salary reduction. Deductions from your paycheck are made before state and federal income tax. The number of deductions taken per year as well as the number of payroll changes allowed in a year is established by your employer.
Ask your employer if your plan allows pre- and/or post-tax contributions to a 403b Roth account. See 403b Roth contributions Q&A for more information.
Employee contribution limits
Payroll reduction options
Payroll reduction amount
50+ contribution limit
Special Catch-Up
Contribution Limits
The minimum amount you must contribute to participate in the 403b is established by your employer. The IRS maximum contribution limits are shown below (terminating employees have the option to defer sick and vacation pay from their last paycheck up to the IRS maximum limit). All contributions and earnings stay tax deferred until you take the money out as income anytime after terminating from this employer.
IRS 2009 Contribution Limits
Regular Limit |
15-Year Catch-Up Limit |
50+ Catch-Up Limit |
Maximum Total Limit |
|---|---|---|---|
| The lesser of 100% of compensation* or: | This catch-up applies if you have worked for your employer for at least 15 years and you meet other eligibility criteria. | For participants age 50 or older, the Regular Limit is increased by: | This limit is available if you eligible for both the 50+ AND 15-Year Catch-Up limits. |
| $16,500 | $19,500 | $5,500 | $25,000 |
*Compensation is your gross salary minus your retirement (IPERS) deductions. The maximum amount you may contribute is reduced by deductions for FICA, insurances, flexible spending accounts, employee organizations, assignments, and other like items.
Please Note: The total of all contributions made to this 403b plan and/or any other 403b plan in a calendar year, must not exceed the IRS maximum limits shown above.
All contributions and earnings stay tax deferred until you take the money out as income anytime after you terminate from State employment.
 |
return to top |
Payroll reduction options
If you are paid more than once per month, ask your employer if you have the option to have your total monthly deduction taken from your 1st paycheck of the month (12 deductions/year), the 2nd paycheck of the month (12 deductions/year), or equally divided between the 1st and 2nd paycheck each month (24 paychecks/year).
Retiring or terminating employees have the option to defer unused vacation pay and qualified unused sick pay up to the IRS maximum limits.
|
return to top |
Changes to payroll reduction amount
If you wish to change your salary reduction amount, ask your employer how often changes are allowed. To change your salary reduction, please complete the RIC Salary Reduction Form.
|
return to top |
50+ Catch-Up Limit
Participants age 50 or turning age 50 this calendar year or older, may contribute an additional amount known as the 50+ Catch-Up (amounts shown above). The 50+ Catch-Up limit is automatic due to your age. Closer to retirement, if qualified, you may have the ability to save over the IRS regular limit by taking advantage of the 15-Year Catch-Up limit.
|
return to top |
Special Catch-Up
Closer to retirement, if qualified, you may have the ability to save over the IRS regular limit by taking advantage of the 15-Year Catch-Up limit .
|
return to top |