Limits for Defined Contribution Plans to Increase in 2019
A defined contribution plan allows you to save for retirement while reducing taxation on your current income. The MCPS 403(b) plan allows employees to save on a tax-deferred basis through salary deduction. A 457(b) plan allows employees to defer compensation to the future, lowering current taxable income and offering potential tax-deferred growth.
Did you know:
- Effective in 2020, the yearly contribution limits for the 403(b) and 457(b) plans (the defined contribution plans) will increase from $19,000 to $19,500.
- The Age 50 Catch-Up Provision allows any participant who is at least 50 years of age at any point during the calendar year to contribute an additional $6,500 to each plan.
- You can change your contribution amount at any time by logging in to the Fidelity website or by calling Fidelity at 1-800-343-0860.
Learn more about the defined contribution plans on the Fidelity website.