Voluntary retirement contribution limits increase for 2007
Here is some good news for the New Year. The amount you can contribute to your Voluntary Retirement Plan account on a tax-deferred basis will increase in 2007. This is a golden opportunity to boost your savings for retirement while reducing your current taxable income.
- In 2007, the maximum contribution amount is $15,500.
- If you are 50 years of age or over, you can contribute an additional $5,000 for a total of $20,000.
Contributing just a little each week could help increase your retirement savings. Plus, your pre-tax contributions allow you to reduce your federal income taxes.
To increase your existing contribution, complete a Salary Reduction Agreement and submit it to the Human Resources Department. You can obtain a copy on the HR forms Web page.
To participate in the Voluntary Retirement Plan for the first time, you must complete an Enrollment Application and a Salary Reduction Agreement from the Human Resources Department.
To help you in planning and calculating the impact of contributions, visit the following Web sites:
If you have questions, call the Benefits Office, (651) 962-6497.
