Questions About Contributions - Employee Savings 403 (b)(7)

There are limits to how much you can contribute. These limits are determined by IRS rules and regulations.

• Generally, your voluntary contribution to the 403(b)(7) program is limited to $15,500 in 2008.

• The overall limit for combined retirement contributions to your own 403(b)(7) plan plus contributions from SPU to your 401(a) plan   is the lesser of 100% of your salary or $46,000.  SPU contributes 9% of salary to the  401(a) plan for eligible employees. 

• The 15-year rule continues to apply, allowing employees with 15 or more years of service at SPU to make up to $3,000 in voluntary contributions beyond the basic $15,500.    Prior contributions made under the 15-year rule are taken into account and a calculation must be performed to determine your personal maximum contribution.  If your service exceeds 15 years and you want to contribute more than $15,500 to the 403(b)(7) use one of the calculators listed below determine the correct amount.

 

403(b)(7) max contribution tools

• Fidelity- www.mysavingsatwork.com/atwork/1081430099016/990738457349/1070604048517.htm  
• TIAA-CREF- https://www3.tiaa-cref.org/tda/TdaServlet  

•  For individuals over age 50, an additional contribution of $5,000 to the 403(b)(7) program is allowed.

• You may take advantage of both the 15-year rule and the over-age-50 rule.  If both rules apply the 15-year rule would be applied first, then the over age 50 rule.

 

The amount you are contributing can be changed at your discretion. In order to do this, you will need to complete a new salary reduction agreement. Deduction agreements will not take effect until the first of the month following one full pay period.

No. Contributions may be reactivated by completing a new deduction agreement. Deduction agreements will not take effect until the first of the month following one full pay period.