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Retirement Plan Contribution Limits Increase

Retirement Plan Contribution Limits Increase Again in 2012!

The amount you can contribute to your supplemental retirement account on a tax-deferred basis will increase in 2012. This is a golden opportunity to boost your savings for retirement while reducing your current taxable income.

For most employees, the maximum before-tax contribution in 2012 is $17,000. If you are age 50 or older in 2012, you can contribute an additional $5,500 before taxes.

Keep in mind the double tax benefit of supplemental retirement plan contributions. First, all of your contributions go into the plan on a before tax basis (federal and most states) so your current tax bill will be reduced. Second, all plan accumulations grow tax deferred so any investment earnings aren't eroded by current income taxes.

It’s easy to start in the plan or change your contribution amount

To begin making Supplemental Retirement Plan contributions, or if you already participate in the plan and want to change your contribution amount, contact Human Resources at x23006 or x23713 or stop by the Human Resources Office for an enrollment kit. You will need to complete an Enrollment Application and Salary Reduction Agreement to get started.

Questions?

If you have questions about your supplemental retirement plans tax-deferral limits, please stop by the Benefits Office or give us a call.

*Distribution may be subject to withdrawal restrictions prior to age 59 ½ and will be subject to ordinary income tax. In addition, a federal 10% additional tax may apply prior to age 59-1/2.