Your Contributions
Contribute a Set Percentage
One easy way to increase your retirement savings is to contribute a percentage of your income to your Deferred Compensation Plan (DCP) account. Consider saving between 7% and 10% of your salary. The DCP makes it easy for you to save a percentage of your income through the percent-of-pay feature. Learn more here.
Pre-tax and Roth (after-tax) Contributions
You have two tax-advantaged ways to save: Pre-tax, Roth (after-tax), or a combination of both. Pre-tax savings provide a tax advantage at the time of contribution, with taxes paid upon distribution. Roth (after-tax) savings provide a tax advantage at the time of distribution, with no taxes paid on any account earnings (if the account is held for at least five years and you’re at least age 59½).
Increase Saving Incrementally
If you’re contributing less than the maximum limit, consider increasing your contributions incrementally. Even a small increase (for example, an additional 1% per pay period) can have a significant impact on your future retirement income. To see how an increase might help build your retirement income security, check out your personalized Retirement Calculator by signing into your DCP account.
Looking to Contribute the Maximum?
IRS Annual Contribution Limits
Your total annual contributions (Pre-tax and Roth combined) cannot exceed the following limits:
| Contribution Limits | Annual Limit | Paycheck Amount1 |
|---|---|---|
| Below Age 50 | $22,500 | $900 |
| Age 50+2 | $30,000 | $1,200 |
| Special Catch-Up3 | $45,000 | $1,800 |
Begin making changes in December to take advantage of the new 2024 limits!Contribution Limits Annual Limit Paycheck Amount1 Below Age 50 $23,000 $920 Age 50+2 $30,500 $1,220 Special Catch-Up3 $46,000 $1,840
Additional Information
1 This calculation is provided for employees who choose to contribute the maximum annual amount allowed in 25 regular and equal payments throughout the year, but participants can elect bi-weekly contributions in any amount they choose.
2 Employees who are age 50 or older, or who will be turning age 50 at any point in the calendar year, are automatically eligible to contribute the higher amount applying to that calendar year.
3 Special Catch-Up is available for participants who are within at least three years of eligible retirement age. It allows these participants to contribute up to twice the Below Age 50 contribution amount for three consecutive years without penalty. To be eligible, a participant must have an unused balance representing amounts the participant was eligible to but did not contribute in prior years. To learn more, please contact us.
