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 Calendar Years 2009 and 2010

For calendar years 2009 and 2010, your pre-tax contributions generally cannot exceed $16,500 per year. However, this amount may be higher if you are at least 50 years of age and/or have at least 15 years of service with the University.

Calendar Years 2009 and 2010 Retirement Limits
Age	General Pre-Tax Limit	Age 50 and Over Catch-Up	Maximum Total Annual Pre-Tax Contribution*
Up to age 49	$16,500	N/A	$16,500
Age 50 and over	$16,500	$5,500	$22,000

^*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. For calendar years 2009 and 2010, the annual compensation limit is $245,000.

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.