Changes to Defined Contribution 401(a) Employer Discretionary Contribution Take Effect in June

In June 2021, President Struppa authorized a temporary increase (from 3% to 9%) in the discretionary employer contribution to employee 401(a) retirement accounts. The temporary increase was intended to help improve the financial positions of your respective 401(a) retirement accounts that were impacted by the temporary suspension of employer contributions during the COVID pandemic.

The temporary increase of the discretionary employer contributions will revert back to 3% of eligible compensation starting in June 2022. Eligible biweekly-paid employees will see this go into effect in their June 17, 2022, paycheck, and eligible monthly-paid employees will see this change in their June 24, 2022, paycheck.

A reminder that retirement plan eligible employees can make changes to their contributions during the year by completing a Salary Deferral Election form. For 2022, employees under the age of 50 can contribute up to $20,500 annually, while those ages 50 and above can contribute up to $27,000. This is also an opportunity for you to speak with a TIAA or Fidelity representative to reassess your portfolio.

Email more information.