Retirement Savings Limits Will Be Unchanged for 2016

Blog Category
Retirement Corner

Image Description Here The holidays are upon us and before you know it 2016 will be here. If you’re looking for a way to lower your taxable income while saving for your retirement, significant tax savings are available to you right now through your UTSaver 403(b) Tax Sheltered Annuity (TSA) and UTSaver 457(b) Deferred Compensation Plan (DCP). The IRS has announced that the contribution limits for 2016 will remain unchanged for most plans.

Key Numbers for You to Know
  • The base contribution limit for both the TSA and DCP will remain at $18,000.00 for 2016.
  • The Age-50 catch-up available to participants 50 or older remains at $6,000.00. 
  • If you have 15 or more years of service with UT and have an average contribution of under $5,000 per year throughout your participation in the TSA, you may be able to contribute an additional $3,000.  
  • If you are in the last three years before retirement, you may also be able to participate in a special catch-up provision in the UTSaver DCP that would allow you to contribute as much as $36,000.
Don't Forget: You Always Have the Flexibility to Adjust Your Monthly Contributions

With holidays fast approaching, it’s good to know that you have flexibility in how much you contribute to your UTSaver accounts each month. For instance, did you know that you can change, increase or even lower your contributions into the plan each month?  

For example, if you're contributing $200 per month, but know you're going to have extra expenses in December, you could lower your contribution to $100 for December 2015 and January 2016, and increase back to $200 per month in February, when expenses are back to normal.  

The freedom and convenience of the UTSaver retirement programs ensures that you have the tools you need to save as much, or as little, as you need in any given month. Why wait? Get started today by visiting us at  www.utretirement.utsystem.edu . 

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To learn more about the UT Retirement Programs and to start or update your contributions, please visit our website at  www.utretirement.utsystem.edu .