The IRS announced the 2013 contribution limits for the UW Tax-Sheltered Annuity 403(b) Program (TSA) and Wisconsin Deferred Compensation 457 Program (WDC).
In 2013, employees may contribute a maximum of $17,500 to the TSA Program. Employees age 50 and over can contribute an additional $5,500 for a total of $23,000. These same limits apply to WDC. Employees can contribute the maximum to both programs for a total of $35,000 (under age 50) or $46,000 (age 50 or older).
If you have 15 years or more of service with the UW, 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 after-tax 403(b) contributions count towards the annual limit. For example, if you are under 50, you could contribute $8,500 pre-tax and $9,000 Roth after-tax to each program.
Employees currently enrolled in the TSA Program can easily change TSA contributions for 2013 by submitting a Salary Reduction Agreement (SRA) to their human resources/benefits office. See the TSA website for more information about enrolling in the program.
If you want to change your deduction for 2013, you should submit your TSA Salary Reduction Agreement to your human resources/benefits office in early December. Clearly mark the form as calendar year 2013.
To change your WDC contribution or enroll in the WDC Program, call the WDC office at 1-877-457-9327 or enroll online.
WDC changes must be made with Great-West Retirement Services in early December 2012, so that they have adequate time to electronically remit the information to the payroll office.
If you want to maximize your TSA and/or WDC contributions for 2013, see the chart below to determine how much to contribute per paycheck.
|Number of Paychecks Annually
||2013 Annual Maximum
||2013 Amount per Paycheck
|9 paychecks (under age 50)
|9 paychecks (age 50 and over)
|12 paychecks (under age 50)
|12 paychecks (age 50 and over)
|26 paychecks (under age 50)
|26 paychecks (age 50 and over)
Note: No deductions are taken during the summer for employees paid on an academic year basis (9 paychecks annually).
Source: UW System Administration