New 403(b) / 457(b) Contribution Limits for 2016
The IRS has announced the 2016 pension contribution limits for 403(b) and 457(b) plans.
The limit for employee contributions to the 403(b) plan is UNCHANGED at $18,000 for those under age 50 and $24,000 if you are age 50 or older.
Similarly, the limit for 457(b) contributions is UNCHANGED at $18,000 for those under age 50 (an increase of $500) and $24,000 if you are age 50 or older.
Keep in mind that because the 403(b) and 457(b) are separate retirement plans and because the limits apply separately, interested individuals could contribute up to $36,000 (for those under age 50) or $48,000 (for those age 50 and older) on a tax-deferred basis to both plans combined.
For more information, Click here for the IRS News Release or call Total Compensation & Wellness at 313-577-3000.
403(b) Plan Salary Reduction Agreement: http://hr.wayne.edu/tcw/retirement-savings/403b-salary-reduction-agreement.pdf
457(b) Plan Salary Deferral Agreement http://hr.wayne.edu/tcw/retirement-savings/457b-salary-deferral-agreement.pdf
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