October 4, 2013
Employees should plan catch-up tax-deferred annuity contributions in advance
A limited number of pay periods remain in 2013 for those wishing to maximize contributions to their tax-deferred annuity (TDA).
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The IRS annually sets limits on the amount that employees can set aside in tax-favored retirement accounts. For 2013, the payroll system is set to monitor the voluntary 403(b) and 457(b) plans so that contributions do not exceed $17,500.
For both voluntary plans, employees who are at least 50 years old during the calendar year may make additional catch-up contributions. The maximum catch-up contribution is $5,500 in 2013.
Changes are made via Fidelity’s online NetBenefits system at http://plan.fidelity.com/purdue (for monthly paid exempt staff) and http://plan.fidelity.com/purduenonexempt (for biweekly paid non-exempt staff). Contributions must be calculated as a percentage of pay, instead of a dollar amount.
Given the end-of-year holiday schedule, the payroll processes are earlier than usual. Please note the remaining pay dates, along with the normal data transmission window.
Employees needing assistance with setting up a deferral may contact Purdue's local Fidelity office. Call 800-544-6868 to set up an appointment.