There's some good news on the financial front as the Federal Government has raised next year's maximum contribution to 401(k) plans to $18,500. That is a $500 dollar increase from this year. If you are 50 years of age or over, the federal government allows for "catch up"contributions of $6,000 dollars for a total maximum contribution of $24,500 dollars.
Our TDA is a cost efficient 403(b) plan and the same rules apply as for the 401(k) plans when it comes to the maximum contribution and "catch up" funds. Therefore, expect the TDA to raise the maximum contribution limit by the same $500 dollars.
Depending on your age, the maximum contribution limits are as follows:
Age.......................Maximum Contribution
under 50...........................$18.500
50 or older........................$24,500
Just a reminder. We will be getting a raise (3%) in May and another 2% in June. A good rule of thumb is for every raise, you should increase your TDA contribution by 1%. Moreover, the TDA is tax differed and until age 70.5 it continues to appreciate tax free, until the Required Minimum Distribution kicks in.
For more information go to TRS online and my article on the TDA.
