Supplemental retirement plan limits are increasing in 2020! The following information and reminders may be helpful to participants in the 403(b) and 457 plans.
Increased Limits for 2020
The Internal Revenue Service (IRS) increased the contribution limits effective January 1, 2020 for the University’s 403(b) Plan and the State’s 457 Deferred Compensation Plan.
- The 2020 contribution limit is $19,500 for each plan.
- The limit increases to $26,000 if you are age 50 or over at the end of the 2020 calendar year.
- You may contribute to the 403(b) and the 457 Plans simultaneously, and you may contribute to both traditional (pre-tax) and Roth (after-tax) at the same time, but your combined contributions cannot exceed the limit for each plan.
- See the Supplemental Retirement Plan Comparison Chart for more information.
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To Change Your Contribution(s)
Beginning With Your First Pay in January
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University 403(b)
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Go to My UI Info to complete a Salary Reduction and/or Redirection Agreement (SRA) between the following dates:
Bi-weekly Paid Employees – complete SRA between December 22 – 30
Monthly Paid Employees – complete SRA between December 22 – January 6
Completing the SRA before the above dates will make the change too soon, and after the above dates may delay the change until February.
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State 457 Deferred Comp.
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University Payroll & Benefits must receive your Change Form on or before November 29. Forms received after this date may delay the change until February.
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Final Contributions for Tax Year 2019
The retirement plan payroll deductions withheld from your December paycheck(s) are the final contributions that can be made for the 2019 tax year.
Important for Each Tax Year
If you contributed, in any calendar/tax year, to a retirement plan through another employer, it is your responsibility to monitor your total contributions to all plans to ensure that you do not contribute over the IRS maximum allowed each year.
Questions?
For more information, please see Retirement & Investment Plans. If you need assistance making a change to your contribution amount or have questions, contact University Payroll & Benefits (UPB):
Please do not send forms or documentation that include your Social Security Number as email attachments. Send these via fax or hand-deliver them to UPB.
- Fax: 217-244-3135
- Email: benefits@uillinois.edu
- Urbana: 217-265-6363
- Chicago: 312-996-7200
- Springfield: 217-206-7144
