Tag: retirement plans

Retirement Planning: 2024 IRS Retirement Plan Contribution Limits

Published on by Megan MacGregor2 Comments

Whether your retirement is on the horizon or a faraway goal, it’s 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 and recently announced the retirement plan limits for 2024:

  • The annual employee contribution amount increased from $22,500 to $23,000 for 403(b) and 457(b) plans.
  • The age 50 catch-up contribution amount remains the same at $7,500 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 aged 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 following articles contain more detailed information about MSU’s retirement plan options and preparing for retirement:

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

Your Top Questions About MSU’s Optional Retirement Plans

Published on by Megan MacGregorLeave a comment

Whether this is your first job out of school, or you’ve been working for 40+ years, it’s important to make sure you’re taking advantage of every opportunity to prepare for your eventual retirement. Most benefit-eligible employees* are aware of and enrolled in the 403(b) Base Retirement Program (BRP) offered by MSU, which consists of a 5% employee contribution of your eligible compensation and a generous university matching contribution of 10% – an immediate two for one match of your investment – for a total contribution of 15%. While this provides a great foundation for your retirement savings, most employees will eventually want to consider additional savings options for their retirement.

In addition to the BRP, eligible employees also have the option of enrolling in two additional retirement programs: the 403(b) Supplemental Retirement Program and the 457(b) Deferred Compensation Plan. Enrollment in one or both optional programs can help employees meet their retirement savings goals so they can more easily transition to retirement.

We’ve compiled a list of the top questions we receive as employees think about enrolling in these optional plans:

  • Q: Is there a minimum amount that must be contributed to one of the optional plans? What about a maximum amount?

    A: Employees may elect any percentage contribution, as all contributions are based on a percentage of eligible pay. For example, 1.50% would be an acceptable contribution election. Employees wishing to contribute a certain amount, such as $100 per paycheck, can use the calculating tool for converting a dollar amount to a percentage.

    Maximum contribution amounts are set by the Internal Revenue Service (IRS) each year. Information on current IRS limits, including Age 50 Catch-up contributions, can be reviewed at maximizing your retirement plan contributions.
  • Q: Does contributing a small amount – such as $25 a month – make a difference in the long run?

    A: We encourage employees to work with their financial advisors or retirement vendors for assistance in deciding how much more to contribute. You may be surprised how a small contribution over a long period of time can impact your retirement account balance and may want to take advantage of compounding earnings as you save for retirement.
  • Q: What are the main differences between the 403(b) Supplemental and the 457(b) Deferred Compensation Plan?

    A: Generally, the differences are when an individual can access the funds and the loan provisions. Also, the 403(b) Supplemental contributions must be added with the Voluntary 403(b) Base contributions when calculating the IRS maximum contributions, whereas the 457(b) Deferred Compensation Plan has a separate IRS maximum limit. A more detailed comparison of the two different optional accounts can be found in the Retirement Plans Comparison chart.
  • Q: Can I enroll in an optional retirement plan account at any time?

    A: Yes, retirement plan elections can be made at any time. This includes beginning or canceling enrollment, increasing or decreasing contribution percentages, and changing vendors. Depending on payroll schedules and deadlines there may be a delay when the contributions start/stop. More detailed information can be found on the HR website at Enroll or Make Changes to Retirement Plans.

For more information about available retirement plans from MSU, please review the retirement resources on the HR website and the MSU Retirement Plans Enrollment Guide. Find instructions to enroll in these optional retirement plans at any time throughout the year. Please contact the HR Solutions Center with any questions at SolutionsCenter@hr.msu.edu or 517-353-4434.

*Note: Certain types of employees are excluded to participate in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart for more detail.