HR, Payroll and Benefits News

2019 Tax-Sheltered Annuity and Wisconsin Deferred Compensation Limits

The IRS recently announced the 2019 contribution limits. These contribution limits apply to the UW Tax-Sheltered Annuity (TSA) 403(b) Program and the Wisconsin Deferred Compensation (WDC) 457 Program.

In 2019, employees may contribute a basic maximum of $19,000 to the TSA Program. Employees age 50 and over can contribute an additional $6,000 for a total of $25,000. These same limits apply to WDC. Employees can contribute the maximum to both programs for a total of $38,000 (under age 50) or $50,000 (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 limits. Note: Individual Retirement Accounts (IRAs) are a type of retirement account separate from the TSA and WDC Programs and have separate limits.

To change your TSA deduction for 2019 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, set up your account 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 2019.

For questions on the TSA program go to the TSA website - and don’t hesitate to use ALEX, a personalized online benefits counselor. You may also contact your human resources office with questions on your benefit plans.

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 2018, so that there is adequate time to electronically send the information to the UW Service Center.

Source: UW System Human Resources