Limits for Defined Contribution Plans to Increase in 2019
A defined contribution plan allows employees 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.
In addition, did you know:
- Effective in 2019, the yearly contribution limits for the 403(b) and 457(b) will increase from $18,500 to $19,000.
- The Age 50 catch-up provision allows any participant who is at least 50 years of age to contribute an additional $6,000 to each plan. You can do this at any point during the calendar year.
- You can learn more about the defined contribution plans or change your contribution amount at any time by logging in to the Fidelity website or by calling Fidelity at 1-800-343-0860.