Retirement Planning: 2020 IRS Retirement Plan Contribution Limits

Could you be saving more for your retirement? Whether you’ve just started working at MSU or have been here for 30+ years, it is important that you continue to monitor and adjust how much you’re saving if you want to have a comfortable retirement.

The IRS places limits on how much employees can contribute to a retirement plan each year. The IRS recently announced the retirement plan limits for 2020:

  • The annual employee contribution amount increased to $19,500 from $19,000 for 403(b) and 457(b) plans.
  • The age 50 catch-up contribution amount increased to $6,500 from $6,000 for 403(b) and 457(b) plans.

If you want to save as much as you can for your retirement, there is a tool in the EBS Portal called the Max Savings Contributions Calculator available to assist you. This tool automatically displays the remaining amount of retirement contributions you have available before reaching one of the limits, and the equivalent percentage of your pay to help you spread that out for the year.

To access this tool:

1. Login to the EBS Portal with your MSU NetID and password.

2. Click the My Benefits tab at the top.

3. Click the Benefit/Retirement tile.

4. Select Enroll/Change my Retirement/Health Savings Account Options in the drop-down menu and then click Next in the bottom right.

5. Navigate in the bar graph to the Savings Plans screen by clicking Next in the bottom right.

6. The Max Savings Contributions Calculator screen will display. This display will automatically show the remaining amount of retirement contributions you have available (if any) before reaching the IRS limit.

7. You can adjust the percentage of your contributions to any retirement plans you participate in by clicking on the pencil icon, and then choose Select to make the change.

8. If you want to enroll in a new plan, begin by clicking on the paper icon next to the plan and vendor of your choosing, and then enter the percentage of your new contribution and choose Select to enroll.

9. Make sure to click on Save in the bottom right to complete and save any changes/enrollments.

If you are an academic year faculty or academic staff employee, or a Voluntary 403(b) Base participant age 50 and over, contact the HR Solutions Center at 517-353-4434 or SolutionsCenter@hr.msu.edu for further assistance in calculating your maximum contribution percentage.

Learn More About MSU’s Retirement Plans 

The HR website contains a wealth of information about the different types of retirement plans offered, retirement investment vendors, and planning tools available.

Register for an Upcoming Roadmap to Retirement Course!

Is retirement on your radar for the next 1-2 years? First, we’d like to say thank you for your years of service to MSU! We want you to feel prepared for this next stage in your life. To support you, we offer courses, tools and resources to help you plan for your retirement, including the Roadmap to Retirement course.

“We know it can be overwhelming to think about all of the things to consider when retiring. Based on our years of experience helping MSU employees, we’ve designed the half-day Roadmap to Retirement course to provide you with some of the most important information you will need as you prepare for this exciting transition to your next chapter in life,” says Dan Mackey, Human Resources Manager and Retirement Administrator.

This course gives you a chance to ask retirement experts questions and covers a range of topics critical to your successful retirement, including:

  • Your MSU benefits in retirement
  • An overview of Social Security
  • Financial preparation tips for retirement.

This half-day course is free to MSU faculty and staff. There are two Roadmap to Retirement courses available on Thursday, January 23: a morning session from 8:30 am – Noon and an afternoon session from 1:00 – 4:30 p.m.

Ready to Register?

To register for Roadmap to Retirement, login to the EBS Portal and click on the My Career and Training tab, then the Courses for Employees at MSU tile. Find a complete list of available OPD courses on the HR website.

Retirement Resources on the HR Website

If you are unable to attend the Roadmap to Retirement course detailed above, there are a variety of webinars and online tools available on the HR website. The webinars on this page include the same presentation slides that are shared during the Roadmap to Retirement course.

Questions? We’re here to help! Contact the Solutions Center at SolutionsCenter@hr.msu.edu or 517-353-4434.