The following email was sent to faculty and staff by Director of Human Resources Marty Mastascusa on Monday, November 9.
The IRS elected not to change the maximum limit on annual retirement plan salary reduction contributions for 2016. If your salary reduction maximum is already set based on the "per pay" amount indicated on the link below, you do not need to do anything in order to reach the 2016 maximum.
If it is your intent to reach the 2015 maximum and are not already set up to do so, please complete a Salary Reduction Agreement (accessed through the above link) and return it to Human Resources by December 1, 2015.
If you are changing your reduction in January, please complete and return the Salary Reduction Agreement by December 22, 2015.
If you are electing a new reduction amount and plan to using the higher limit for employees age 50 and over, please remember to check that you are using the Section 414(v) limit and indicate your date of birth on the Salary Reduction Agreement. Employees born on or before December 31, 1966 will be eligible to use the higher limit starting in January.
Employees with over 15 years of service may contribute additional "catch-up" amounts under the 15-Year Rule. If you have been advised that you cannot use the 15-Year Rule due to high historic contributions, that restriction still applies. I find that very few employees who want to maximize qualify under this Rule, as it can only be used by employees whose average annual salary reduction is under $5,000.