On October 20, 2011, the Internal Revenue Service (IRS) announced cost-of-living adjustments affecting the dollar limitation for pension plans and other retirement-related items for 2012. Included in the cost-of-living adjustment changes was the increase to the maximum allowable contribution amount for 403(b) Tax-Deferred Annuity plans (e.g., TIAA-CREF “Supplemental Retirement Annuity” plan).
Contribution maximums will increase from $16,500.00 in 2011 to $17,000.00 in 2012; however, the “catch-up” contribution limit for those ages 50 and above will remain at $5,500.00. The new 2012 contribution maximums are reflected below:
|
|
2011 Maximum |
New 2012 Maximum |
|
Under 50 years old |
$16,500.00 |
$17,000.00 |
|
50 years old and above |
$22,000.00 |
$22,500.00 |
All eligible employees will receive an email from the RCUH informing them the maximum contribution limits for the tax year 2012, which will include instructions on how to make changes to their existing SRA/TDA contribution amounts or to enroll in their own SRA plan.
For more information on the IRS cost of living adjustment changes, you can visit the IRS website at www.irs.gov.