Voluntary retirement contribution limits increase for 2007

Voluntary retirement contribution limits increase for 2007

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 2007. This is a golden opportunity to boost your savings for retirement while reducing your current taxable income.

  1. In 2007, the maximum contribution amount is $15,500.
  2. If you are 50 years of age or over, you can contribute an additional $5,000 for a total of $20,000.

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. You can obtain a copy on the HR forms Web page.

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, visit the following Web sites:

If you have questions, call the Benefits Office, (651) 962-6497.