|ATTENTION:||Human Resource, Benefit and Payroll
Officers and State Employees
Participants in the 457 Deferred Compensation and 403(b) Plans
|SUBJECT:||2018 IRS Maximum Contribution Limits and the Need to Restart Contributions for Participants who stopped contributions during 2017|
The purpose of this memorandum is to announce the 2018 limits for contributions to the State of Connecticut 457 Deferred Compensation Plan and the 403(b) Plan and to explain how participants who elected their contributions be stopped during 2017 can restart plan contributions in 2018.
II. CONTRIBUTION LIMIT
The amount that employees can contribute to the 457 or the 403(b) Plan each year is limited by the Internal Revenue Code. The Internal Revenue Service (IRS) recently announced revisions to the contribution limits for 2018. This means that the maximum amount an individual under the age of 50 may contribute to a 403(b) or 457 Plan during 2018 is $18,500. Employees who will be at least age 50 by the December 31, 2018 tax year can contribute an additional $6,000.
The annual limit applies to pre-tax contributions, post-tax contributions or any combination of the two. Employees who are eligible for both the 403(b) and 457 Plans may contribute the 2018 maximum amount to each plan. The minimum contribution amount for the 457 Plan is $20 per pay period and $200 annually for the 403(b) Plan.
III. RESTARTING AND INCREASING CONTRIBUTIONS IN 2018
Employees who elected to have their contribution(s) stop in 2017 must elect
to re-start their contributions to the 403(b) or 457 Plan for calendar year
2018. See the attached Payroll Cut-off Schedule for the applicable deadlines for
submitting changes for paychecks in 2018. Employees who stopped Plan
contributions during an unpaid leave of absence will need to re-start
contributions. Prudential will restart contributions for employees whose
deduction was suspended automatically due to reaching the IRS maximum in 2017.
All employees are encouraged to review the first paycheck in January to confirm
the accuracy of their 457 or 403(b) Plan contribution amounts.
Employees enrolled in the 457 and 403(b) Plans can restart their contributions online by following these instructions:
Prudential can also accept contribution changes and restarts for the 457 and 403(b) Plans by telephone. You can reach Prudential at 844-505-SAVE (7283).
For all other employees actively contributing to the 403(b) and 457 Plans in 2017, your contribution election will continue for 2018 unless you have initiated a change.
Payroll and Human Resources Personnel are encouraged to provide this information to all employees. Employees who have questions regarding the 403(b) or 457 Plan should call Prudential at 844-505-SAVE (7283) or log onto www.CTDCP.com for more information. You may also contact the Employee Benefits Unit for assistance at 860-702-3543 or at firstname.lastname@example.org.
Very truly yours,
THOMAS C. WOODRUFF, Ph.D.
|Paper form contribution changes (faxed or mailed) received between these dates by 4pm EST||Online and Phone-In Contribution changes made between these dates by 4pm EST||Will be effective for the following pay date below|
|Bi-Weekly Check Date||Semi-Monthly Check Date||Monthly Check Date|
|10/27/17 to 11/14/17||11/1/17 to 11/17/17||12/8/17||12/15/17|
|11/15/17 to 11/27/17||11/18/17 to 11/30/17||12/22/17||12/29/17||01/05/18|
|11/28/17 to 12/12/17||12/1/17 to 12/15/17||01/05/18||01/12/18|
|12/13/17 to 12/24/17||12/16/17 to 12/29/17||01/19/18||01/31/18|
|12/25/2017 to 1/9/18||12/30/17 to 1/12/18||02/02/18||02/15/18||02/02/18|
|1/10/18 to 1/23/18||1/13/18 to 1/26/18||02/16/18||02/28/18|
|1/24/2018 to 2/6/18||1/27/18 to 2/9/18||03/02/18||03/15/18||03/02/18|
|2/7/18 to 2/20/18||2/10/18 to 2/23/18||03/16/18||03/29/18|
|2/21/18 to 3/6/18||2/24/18 to 3/9/18||03/29/18||03/29/18||04/06/18|
|3/7/18 to 3/20/18||3/10/18 to 3/23/18||04/13/18||04/13/18|
|3/21/2018 to 4/3/17||3/24/18 to 4/6/18||04/27/18||04/30/18||05/04/18|
|4/4/17 to 4/17/17||4/7/18 to 4/20/18||05/11/18||05/15/18|
|4/18/2017 to 5/1/18||4/21/18 to 5/4/18||05/25/18||05/31/18||06/01/18|
|5/2/18 to 5/15/18||5/5/18 to 5/18/18||06/08/18||06/15/18|
|5/16/18 to 5/29/18||5/19/18 to 6/1/18||06/22/18||06/29/18||07/06/18|
|5/30/18 to 6/12/18||6/2/18 to 6/15/18||07/06/18||07/13/18|
|6/13/18 to 6/26/18||6/16/18 to 6/29/18||07/20/18||07/31/18|
|6/27/18 to 7/10/18||6/30/18 to 7/13/18||08/03/18||08/15/18||08/03/18|
|7/11/18 to 7/24/18||7/14/18 to 7/27/18||08/17/18||08/31/18|
|7/25/18 to 8/7/18||7/28/18 to 8/10/18||08/31/18||08/31/18||09/07/18|
|8/8/18 to 8/21/18||8/11/18 to 8/24/18||09/14/18||09/14/18|
|8/22/18 to 9/4/18||8/25/18 to 9/7/18||09/28/18||09/28/18||10/05/18|
|9/5/18 to 9/18/18||9/8/18 to 9/21/18||10/12/18||10/15/18|
|9/19/18 to 10/2/18||9/22/18 to 10/5/18||10/26/18||10/31/18||11/02/18|
|10/3/18 to 10/16/18||10/6/18 to 10/19/18||11/09/18||11/15/18|
|10/17/18 to 10/30/18||10/20/18 to 11/2/18||11/23/18||11/30/18||12/07/18|
|10/31/18 to 11/13/18||11/3/18 to 11/16/18||12/07/18||12/14/18|
|11/14/18 to 11/27/18||11/17/18 to 11/30/18||12/21/18||12/31/18||January 2019|
The cut-off date is the last date that a participant can submit a change for
the corresponding check date.
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