Voluntary Financial Plan Contribution Limits Raised

The federal standards for voluntary retirement plan contribution limits have been increased by $500 for calendar year 2012.

The new limits are:

• Employees age 49 and below $17,000
• Employees age 50 and above $22,500.

For this purpose, your age is calculated by how old you are on Dec. 31.

Employees with more than 15 years of service may be eligible for additional savings.

Retirement plan contributions are maximized because they are deducted from an employee’s pay before federal taxes. The investment earnings on the money are tax deferred and taxes will not be due until the money is taken out of the account.

With the year-end approaching, it is a good time to review current budget and retirement needs to determine reductions for calendar year 2012. Changes in contribution amounts may be completed at any time with the completion of a new Salary Reduction Agreement, which may be obtained from the Office of Benefits or downloaded from the benefits office website.

If you have questions, please contact the Office of Benefits at 412.396.5041.