2018 Tax-Sheltered Annuity and Wisconsin Deferred Compensation Limits
November 15, 2017
The IRS recently announced the 2018 contribution limits. These contribution limits apply to the UW Tax-Sheltered Annuity 403(b) Program (TSA) and the Wisconsin Deferred Compensation 457 Program (WDC).
In 2018, employees may contribute a basic maximum of $18,500 to the TSA Program. Employees age 50 and over can contribute an additional $6,000 for a total of $24,500. These same limits apply to WDC. Employees can contribute the maximum to both programs for a total of $37,000 (under age 50) or $49,000 (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. Contact your human resources office for more information.
Both pre-tax and Roth (after-tax) contributions count towards the annual limit. Note: IRAs are a type of retirement account separate from the UW 403(b) and WDC Programs and have separate limits.
If you want to change your TSA deduction for 2018 or enroll in the program, submit your TSA Salary Reduction Agreement to your human resources office in early December. If you are enrolling for the first time, enroll with the provider(s) of your choice either online, by EZ Enrollment form, or via paper application prior to submitting your Salary Reduction Agreement. Clearly mark the form as calendar year 2018.
For questions on the TSA program go to the TSA website or contact your human resources office.
To change your WDC contribution call the WDC office at 1-877-457-9327 or access your account at the WDC website. The WDC website also has information about enrolling in the program. WDC changes must be made with Empower, the third-party WDC plan administrator, in early December 2017, so that there is adequate time to electronically send the information to the UW Service Center.
Source: UW System Human Resources
Categories: Payroll