COMPTROLLER'S SEAL STATE OF CONNECTICUT
STATE OF CONNECTICUT
  OFFICE OF THE STATE COMPTROLLER  
Kevin Lembo
State Comptroller
55 ELM STREET
HARTFORD, CONNECTICUT
06106-1775
Martha Carlson
Deputy Comptroller

COMPTROLLERíS MEMORANDUM NO. 2011-25

December 16, 2011

TO THE HEADS OF ALL STATE AGENCIES

Attention:    Personnel and Payroll Officers, Chief Administrative and Fiscal Officers, and Business Managers
Subject:    Roth Feature Added to the State of Connecticut 457 Plan 2012 Contribution Limits for the 457 and 403(b) Plans

INTRODUCTION

The purpose of this Memorandum is to (1) announce the ability for participants to make Roth contributions to the 457 Plan and (2) set forth IRS contribution limits for the Stateís 457 and 403(b) Plans for 2012.

II. ROTH 457 AVAILABILITY

Beginning January 1, 2012, the Office of the State Comptroller (OSC) will allow employees to make Roth contributions to the State of Connecticut 457 Deferred Compensation Plan.
The addition of the Roth feature will give employees the option of contributing to the 457 Plan on a before-tax or after-tax basis. The Stateís 403(b) Plan has allowed Roth contributions for a number of years.
When participants contribute to the 457 Plan on a pre-tax basis federal, state, and local income taxes are deferred on contributions and investment earnings until they are distributed. Employees who contribute to the 457 Plan on a Roth, or after-tax, basis pay taxes on their deferral amounts, but will not be taxed on qualified distributions (including any investment gains) after IRS minimum participation rules have been satisfied. ING, the Planís third party administrator will be distributing more information about the Roth 457 feature shortly.

IRS CONTRIBUTION LIMITS FOR 2012

A. 457 and 403(b) Plan Contribution Limits

Effective January 1, 2012, the annual maximum deferral limit for contributions to the Deferred Compensation 457 Plan and the 403(b) Plan will be $17,000, or 100% of includable compensation, whichever is less. The aggregate deferral limit for each plan is the same whether contributions are made on a pre-tax or post-tax basis (or a combination of the two). Employees who are eligible to participate in both the 457 and 403(b) Plans will be eligible to defer up to a $17,000 in each plan, for a total of $34,000.

B. Age-50 Catch-up Contributions

The Age-50 Catch-up contribution is available to participants in the 457 and 403(b) Plans who will be age 50 or older by December 31st. For 2012, the annual dollar limit for the Age 50 Catch-up contribution remains $5,500.

For participants making Age 50 Catch-up contributions, the aggregate deferral limit in each plan (whether made on a pre-tax or post-tax basis) will be


Employees who participate in both the 457 and 403(b) Plans and elect to make the Age 50+ catch-up contributions are eligible to make an aggregate maximum contribution of $45,000 across both plans.

IV. ADMINISTRATION

Participants with inquiries relating to Plan enrollment, contribution limits, and investment options should be directed to call ING at 1-800-584-6001 or to consult the defined contribution plansí web site at http://www.CTdcp.com.

V. CONCLUSION

Questions about this memorandum may be directed to the Healthcare Policy & Benefit Services Division, Employee Benefits Unit at (860) 702-3570.



KEVIN LEMBO
STATE COMPTROLLER

 

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