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Investment Performance
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Personal Financial Planning
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Enter your salary to see how much more you can contribute
| 2010 Federal Contribution Limits | | Total Contributions | 100% of your compensation* or
$49,000
(whichever is less)
| | Age 50+ Catch-Up | $5,500 |
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* The IRS Code limits includable compensation to $245,000
| 2010 Tax-Deferred Contribution Limits | Tax-Deferred Contributions Maximum
(individual limit from all salary reduction retirement plans)
| $16,500
| 15+ Years of Service Catch-Up
(increases tax-deferred contribution maximum)
| $3,000*
| Age 50+ Catch-Up
(increases both total and tax-deferred contribution maximum) | $5,500
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* The 15+ Years of Service Catch-Up amount can be as much as $3,000 but is limited based on how much you’ve contributed in the past. Call Customer Service at 1-800-RET-YMCA for more information about your eligibility.
Contributions to a 403(b) Smart Account are “pre-tax” and reduce your current year’s taxable income. Your total individual elective deferrals under the following salary reduction plans are subject to the federal contribution limits: 401(k) plans, 403(b) plans, designated Roth contributions, Simplified Employee Pension (SEP) plans, and SIMPLE plans with salary reduction features. If you participate in plans of multiple employers, your total tax-deferred contributions from all such plans may not exceed the federal limit.
Contributions to an After-Tax Account in the Retirement Plan have already been taxed. These contributions do not lower your annual taxable income. However, all earnings on this account grow tax deferred. After-tax contributions are subject to “non-discrimination” testing. The testing that is required comes under Section 401(m) of the Internal Revenue Code. The IRS requires that retirement plans compare after-tax contributions made by non-highly compensated employees to after-tax contributions made by highly compensated employees. This is called “non-discrimination” testing, and it is designed to ensure that highly compensated employees are not unduly favored. If a YMCA fails the test, all or a portion of these contributions, plus interest, will be refunded to the highly compensated employees.
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The 15+ Years of Service Catch-Up allows long-term participants to increase their savings to “make up” for those career periods when they did not maximize their tax-deferred contributions. To be eligible, you must have worked for a YMCA for at least 15 years and your previous tax-deferred contributions could not have exceeded an average of $5,000 per year of service. You may not use more than $15,000 of catch-up contributions over your lifetime, limited to $3,000 in any one year. For 2006 and thereafter, the lifetime limit is reduced by any designated Roth contributions. Restrictions may apply. Please call our Customer Service Department for details.
Participants who are age 50 or older (or will turn age 50 during the calendar year) are allowed to increase their annual tax-deferred contributions by $5,500. By taking advantage of the Age 50+ Catch-Up, your total contribution limit also increases by $5,500. If you are eligible, amounts are attributed to the 15+ Years of Service Catch-Up first (to the extent it is available) and then to the Age 50+ Catch-Up. For example, if you are age 50 or over and also eligible for the entire $3,000 for the 15+ Years of Service Catch-Up, you can save $25,000 tax deferred in 2010 ($16,500 from the basic limit plus $3,000 of 15+ Years of Service Catch-Up plus $5,500 for Age 50+ Catch-Up). Restrictions may apply. Please call our Customer Service Department for details.
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