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New voluntary retirement plan contribution limits help employees save more

The IRS has increased voluntary retirement plan contribution limits from $17,500 in 2014 to $18,000 in 2015, meaning employees may contribute up to $36,000 total to CU’s optional plans in the New Year.

CU helps employees put away retirement savings beyond what they place in their primary retirement accounts through three optional plans: CU’s 403(b) Plan; PERA’s 401(k) Plan; and PERA’s 457 Plan. Employees may contribute the annual maximum to the 457 Plan plus an additional $18,000 to one or both of the other plans. The new limits allow employees to contribute to the maximum limit in 2015 in one of the following ways:

  1. Contribute $18,000 to a PERA 457 Plan and contribute an additional $18,000 to CU’s 403(b) Plan.
  2. Contribute $18,000 to a PERA 457 Plan and contribute an additional $18,000 to PERA’s 401(k) Plan.
  3. Contribute $18,000 to a PERA 457 Plan and contribute a combined total of $18,000 to both CU’s 403(b) Plan and PERA’s 401(k) Plan.

The IRS also increased from $5,500 to $6,000 (or $12,000 total) the additional amount of catch-up funds that employees age 50 and older can contribute to these plans in 2015. The same combined contribution limit for the 403(b) and 401(k) plans also applies to these funds.

Note: Employees enrolled in voluntary plans may still contribute toward the 2014 maximum through April 15, 2014.

Learn more about these voluntary retirement savings plans and their 2015 contribution limits.

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