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Questions
About Contributions - Employee Savings 403 (b)(7)
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| Are
there limits to how much I can contribute? |
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
- 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.
| Can
I change the amount I am contributing once I am enrolled? |
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.
| If
I cancel my contributions, are there any restrictions about
beginning contributions again? |
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.
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