As we enter a new tax year, it is an excellent time to review the amount you contribute to your retirement savings. The Internal Revenue Service has announced the maximum contribution and compensation limits for pension plans and other retirement-related items for the 2023 Tax Year.
The Chapman University Tax Deferred Annuity (TDA) 403b plan allows eligible employees to contribute money toward retirement on a pre-tax or Roth after-tax basis through payroll deductions. Under the plan provisions, Chapman University will provide a 3% discretionary basic contribution and a discretionary matching contribution of up to 6% to eligible employees. Please refer to the official Summary Plan Description for detailed information.
You can change your retirement plan contributions by completing the Salary Reduction Agreement. Forms submitted to the Benefits Department will take effect on the first of the month following receipt.
Highlights of the IRS announcement include:
- The elective deferral (contribution) limit for employees who participate in 403(b) and 457(b) plans have increased to $22,500 from $20,500.
- The Catch-up contribution limit for Individuals aged 50 or over has increased to $7,500 from $6,500 for the 403(b) plan only.
- Annual Compensation Limit has increased to $330,000 from $305,000 (this is the maximum annual employee compensation that can be used in determining employer contributions)
If you have any questions about the limits or would like assistance in making changes to your current retirement plan contributions, please get in touch with Benefits at firstname.lastname@example.org.