Annual TDA Contribution Limits
Purdue University offers two opportunities to set aside money on a pre-tax basis for retirement. Known as the 403(b) and 457(b), you can choose to contribute to one of these tax-deferred annuities (TDAs) or maximize your savings potential by utilizing both plans.
The 403(b) plan allows employees to contribute up to $16,500 in 2009. In addition, employees age 50 and older can make catch-up contributions. The maximum 403(b) contributions for 2009 are:
| Year |
Maximum
Contribution |
+ |
Age 50 or More Catch-Up |
= |
Total |
| 2009 |
$16,500 |
+ |
$5,500 |
= |
$22,000 |
The 457(b) plan allows employees to contribute the lesser of 100 percent of their Purdue pay or $16,500 in 2009. In addition, employees age 50 and older can make catch-up contributions. The maximum 457(b) contributions for 2009 are:
| Year |
Maximum Contribution |
+ |
Age 50 or More Catch-Up |
= |
Total |
| 2009 |
$16,500 |
+ |
$5,500 |
= |
$22,000 |
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