The IRS announced that the annual contribution limits for both supplemental retirement plans have changed for 2025.
The University 403(b) Plan, the State 457 Deferred Compensation Plan (DCP), and the SURS DCP contribution limits are increasing as of January 1, 2025. You may contribute to both traditional (pre-tax) and Roth (after-tax) at the same time.
- If you are under the age of 50, your contribution limit is $23,500 for the University 403(b) plan and a $23,500 combined limit for the 457 Plans.
Participants who are 50 years or above may contribute an additional amount. Only one limit will apply each calendar year, and it is determined by your age at the end of the calendar year.
- If you will be age 50 – 59, you may contribute up to $31,000.
- If you will be age 60 – 63, you may contribute up to $34,750.
- If you will be age 64 or above, you may contribute up to 31,000.
Please note, that the catch-up provision may not be available to you, if:
- You earn an annual salary that is less than your maximum contribution limit.
- You participate in another employer's 403(b), 401(k), or similar salary deferral plan in addition to the University 403(b) Plan. If you are contributing, or have contributed earlier this year, to a similar plan, contact University Payroll & Benefits to coordinate contributions.
- Remember, if you contribute, in any calendar/tax year, to a plan through another employer, it is your responsibility to monitor your total contributions to all plans to ensure that you do not exceed the IRS maximum allowed each year.
- Participating in a 457 plan, such as the State Deferred Compensation Plan or SURS DCP, does not reduce your University 403(b) Plan contribution limit. In other words, you can contribute up to the maximums in the 403(b) and 457 Plans.
