HR & Payroll News

Retirement Plan Contribution Limits Increase

The IRS announced adjustments affecting retirement plan contribution limits for the 2022 tax year.

  • Participants under the age of 50 can contribute up to $20,500 to their Supplemental 403(b) Retirement Plan and to their Virginia Deferred Compensation Plan DCP-457.
  • Participants age 50 and over can contribute $27,000 (includes the $6,500 catch-up contribution) to their Supplemental 403(b) Retirement Plan and to their Virginia Deferred Compensation Plan DCP-457.

 

How to Increase Contributions:

403(b)

457

 

Important Tax Information

  • It is your responsibility to monitor your annual contributions to ensure that you do not exceed the annual limit. If you exceed the IRS limits above, there may be tax penalties if not corrected.
  • If you are enrolled in the Hybrid Retirement Plan, you should be aware that the IRS limits apply to contributions made to both the Hybrid Retirement Plan 457 voluntary employee contributions and the 457 Supplemental Retirement plan combined. If the IRS annual limit is reached early in the calendar year, employee contributions and the employer matching contributions must stop in order to avoid exceeding the limits. If excess contributions occur, there could be potential tax consequences and the accounts will need to be adjusted.
  • Calculate your pay period withholdings carefully.
  • You may begin, cancel or stop contributions at any time during the year.

 

Consultations

  • To schedule an appointment with a TIAA or Fidelity representative, view the schedules available on the Fidelity site or the TIAA site.
  • Mission Square representatives are available for virtual appointments. To schedule an appointment with a Mission Square representative, view the schedule on the Mission Square site.

 

Please contact benefits@gmu.edu with any questions.