Tax-Deferred Retirement Plan (TDR): Retirement Regulations

The Internal Revenue Service specifies annual retirement limits that determine the maximum amounts both you and the University may contribute to the retirement plans in any calendar year.

Contribution Limits

For 2012, your combined pre-tax and Roth after-tax contributions generally cannot exceed $17,000 per year. However, you're eligible to contribute an additional $5,500 beginning January 1 of the year in which you turn age 50 and/or when you have at least 15 years of service with the University.

Retirement Contribution Limits
Calendar Year	Age	General	Age 50 and Over Catch-Up	Maximum Annual Total*
2012	Up to age 49	$17,000	N/A	$17,000
	Age 50 and over	$17,000	$5,500	$22,500

^*Participants who have been employed with the University for fifteen (15) years or more may be eligible for an additional catch-up contribution.

The IRS also limits the amount of annual compensation that can be taken into account when calculating retirement contributions. The annual compensation limit for 2012 is $250,000.

Maximizing Your Contributions

Participants who wish to maximize their contributions should contact the Retirement Call Center at 1-877-PENN-RET (1-877-736-6738) for assistance in determining the new contributions and the pay period amount. Participants who stopped their supplemental contributions because they reached the maximum early in the calendar year should call to have the supplemental deductions restored, since these deductions are not automatically restarted at the beginning of the new year. In order to be effective for January, any changes should be made by calling the Retirement Call Center prior to the close of payroll for January.