What are the 2009 Contribution Limits for 403(b) and 457 Plans?
Each year, the U.S. government adjusts the limits for pension plans, Social Security, and other benefit programs to reflect price and wage inflation and law changes. This year, instead of the usual incremental flat dollar increase to the contribution limit, the IRS has decided to increase based on inflation. The calculation will be based on 2008's limit of $15,500 plus inflation and will be announced sometime in October. If you are over the age of 50, check with your Supplemental Retirement Account ( SRA) vendor to see if you qualify to contribute above the stated limits.
Current SRA Participants
To increase your plan contribution, follow these easy steps:
• Complete an SRA Salary Reduction Agreement Form, available at hr.osu.edu/forms/ben/sraform.pdf.
• Contact your vendor for authorization and have SRA form signed.
• Submit the form to the Office of Human Resources (OHR), Benefits; your new deduction will begin on the next eligible pay after your form has been processed.
To Start Participating
If you are not a current participant in the 403(b) and/or 457 programs and would like to enroll in one or both of the plans, contact the vendor of your choice from the list available at hr.osu.edu/benefits/retirevendors.pdf. SRA contributions are deducted from your pay on a pre-tax basis. The university does not make contributions to your SRA account, but federal and state taxes will be deferred until your account is distributed to you or a beneficiary.
457 plan:
$15 per pay—biweekly or
$30 per pay—monthly
403(b) plan:
$7 per pay—biweekly or
$15 per pay—monthly
To enroll in an SRA, follow these steps:
• Choose an SRA vendor. A complete listing of vendors is available at hr.osu.edu/benefits/retirevendors.pdf. You may enroll in one or both of the plans.
• Contact your chosen vendor and set up a 403(b) and /or 457 account.
• Complete an SRA Salary Reduction Agreement Form available at hr.osu.edu/forms/ben/sraform.pdf, have the vendor authorize the pledge amount, and sign the SRA form.
• Submit the form to OHR; your new deduction will begin once your form has been processed.