2017 Tax-Sheltered Annuity and Wisconsin Deferred Compensation Limits Announced
November 11, 2016
The IRS announced that because inflation has been very low, there are no cost-of-living adjustments to the dollar limitations for contributions to the UW Tax-Sheltered Annuity 403(b) Program (TSA) or the Wisconsin Deferred Compensation 457 Program (WDC) in 2017.
In 2017 – as in 2016 – employees may contribute a basic maximum of $18,000 to the TSA Program. Employees age 50 and over can contribute an additional $6,000 for a total of $24,000. These same limits apply to WDC. Employees can contribute the maximum to both programs for a total of $36,000 (under age 50) or $48,000 (age 50 or older).
If you have 15 years or more of service with the UW and have contributed less than an average of $5,000 per year over your UW employment, you may have an additional "catch-up" opportunity with the TSA Program. Check with your human resources/benefits office to see if you are eligible. For more information, see the web page on TSA limits.
Both pre-tax and Roth after-tax 403(b) or 457 contributions count towards the annual limit. For example, if you are under 50, you could contribute $10,000 pre-tax and $8,000 Roth after-tax to each program. Please note Roth IRAs are an investment completely separate from the UW 403(b) and WDC Programs.
Employees currently enrolled in the TSA Program can easily change TSA contributions for 2017 by submitting a Salary Reduction Agreement to their human resources/benefits office. See the TSA website for more information about enrolling in the program.
If you want to change your TSA deduction for 2017 or enroll in the program, you should submit your TSA Salary Reduction Agreement to your human resources/benefits office in early December. Clearly mark the form as calendar year 2017.
To change your WDC contribution call the WDC office at 1-877-457-9327 or access your account at the WDC website. See the WDC website for information about enrolling in the program.
WDC changes must be made with Empower, the third-party WDC plan administrator, in early December 2016, so that they have adequate time to electronically send the information to the UW Service Center.
If you want to maximize your TSA and/or WDC contributions for 2017, see the chart below to determine how much to contribute per paycheck. Please note: your contribution will automatically stop once the 2017 limit is reached.
|
Number of Paychecks Annually |
2017 Annual Maximum |
2017 Amount per Paycheck |
|
9 paychecks (under age 50) |
$18,000.00 |
$2,000.00 |
|
9 paychecks (age 50 and over) |
$24,000.00 |
$2,666.67 |
|
12 paychecks (under age 50) |
$18,000.00 |
$1,500.00 |
|
12 paychecks (age 50 and over) |
$24,000.00 |
$2,000.00 |
|
26 paychecks (under age 50) |
$18,000.00 |
$692.31 |
|
26 paychecks (age 50 and over) |
$24,000.00 |
$923.08 |
Note: No deductions are taken during the summer for employees paid on an academic year basis (9 paychecks annually).
Source: UW System Administration
Categories: Payroll