Limits for Defined Contribution Plans in 2014 to Remain at 2013 Levels
The Internal Revenue Service (IRS) has announced that the 2014 contribution limit for 403(b) and 457(b) plans will be $17,500 for each plan—unchanged from 2013.
The Age 50 Catch-up Provision will remain in effect, also with unchanged limits. Under the provision, any participant who is at least 50 years of age at any point during the calendar year may contribute an additional $5,500 to each plan. If you are an employee who is at least 50 years of age, that means that in 2014, you may contribute a total of $23,000 to each plan.
To initiate a higher contribution amount beginning with the first pay advice in January, you must complete and submit the proper form(s) to the Employee and Retiree Service Center by Friday, Dec. 20.
Download the forms now:
- Download the 403(b) Salary Reduction Agreement to update your 403(b) plan contributions.
- Download the 457(b) Salary Deferral Agreement to update your 457(b) plan contributions.
Not saving with a 403(b) or 457(b) plan yet?
Such defined contribution plans allow you to defer taxation on your current income by saving for retirement with pretax dollars and deferring taxation on your income and earnings until you withdraw the money. Once you establish a 403(b) and/or 457(b) plan account, you choose how much to contribute, and your contributions are taken directly from your pay and deposited into your retirement savings plan account. You choose with whom to invest your money from among nine MCPS-approved vendors.
Learn more about 403(b) and 457(b) plans and research the available vendors on our web page.
Educational Seminar: 403(b) and 457(b) Retirement Plans
MCPS recently introduced a series of monthly educational seminars focused on investment and retirement savings topics. The seminars feature speakers from our 403(b) and 457(b) vendors. Representatives from ING will host a session on Monday, Dec. 16, from 4–6 p.m. in the Maple Room at 45 W. Gude Dr. in Rockville. To register, log in to Professional Development Online (PDO) and search for course number 74817. For more information, visit 403(b) and 457(b) plans.