Voluntary retirement contribution limits increase for 2006
From Peter Ronza, Compensation and Benefits Manager
Here is some good news for the New Year. The amount you can contribute to your Voluntary Retirement Plan account on a tax-deferred basis will increase in 2006. This is a golden opportunity to boost your savings for retirement while reducing your current taxable income.
In 2006, the maximum contribution amount is $15,000.
If you are 50 years of age or over, you can contribute an additional $5,000 for a total of $20,000.
Another new feature for 2006 is that you can split your contribution to TIAA-CREF and Fidelity. In the past you were limited to designating the entire contribution to one vendor or the other. Now, if you choose, you can split between the two any way you would like.
Contributing just a little each week could help increase your retirement savings; plus, your pre-tax contributions allow you to reduce your federal income taxes!
To increase your existing contribution, complete a Salary Reduction Agreement and submit it to the Human Resources Department. The form can be downloaded from the HR Web site.
To participate in the Voluntary Retirement Plan for the first time, you must complete an Enrollment Application and a Salary Reduction Agreement from the Human Resources Department.
To help you in planning and calculating the impact of contributions, you can go to the following Web sites:
If you have any questions, please contact the Benefits Office, (651) 962-6497.