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Contributions to the 403(b) Plan

Contributions are by payroll deduction only. You may contribute either a flat dollar amount or a percentage of your salary. Your salary for purposes of calculating each deposit is reduced by your contribution to the State Universities Retirement System (SURS).

Minimum Annual Contribution
You must contribute a minimum of $200 per year via flat dollar amount or percentage of salary.

Maximum Annual Contribution
The maximum that you can contribute to the 403(b) plan is 80% of your eligible salary (after reduction of SURS contribution) or the annual limit, whichever is less. Please be aware that this maximum is a combined total of the traditional 403(b) and the Roth 403(b) contributions. The annual limit is established by the Internal Revenue Code Section 402(g). For the current year maximum limit, see the 403(b) Universal Availability Notice

Note: Employees who are age 50 and over, or who have 15 years of service with the University, may be eligible to contribute more than the annual limit by taking advantage of the Catch-Up Provisions.

You are encouraged to request a personal maximum annual contribution limit calculation before you enroll or make changes within the 403(b). Contact your Benefits Office for information on obtaining this calculation. Your Salary Reduction and/or Redirection Agreement will be accepted and processed pending the outcome of your maximum annual contribution limit calculation.

Catch-Up Provisions

In the 403(b) Plan, there are two options for "catch-up" as you near retirement.
  1. Employees who are age 50 and over may make contributions with a higher annual limit.
  2. Employees who have worked for the University of Illinois for 15 years or more full-time, and have not taken advantage of all their tax-deferral opportunities in the past, may qualify for a special catch-up provision. This provision allows an additional amount to be contributed each year.

IRS regulations state that plan participants who are eligible for both catch-up provisions must first exhaust the lifetime catch-up before making an age 50 catch-up contribution.

Contact your plan provider for catch-up provision details.
TIAA: 800-842-2776
Fidelity Investments: 800-343-0860

If you are also participating (or considering participation) in the State of Illinois 457 Deferred Compensation Plan, there are two additional options for "catch-up" as you near retirement associated with that plan.

  1. Employees who are age 50 and over may make contributions with a higher annual limit.
  2. Employees may contribute twice the normal limit for any or all of the last three years prior to normal retirement age.
Note: You must have a maximum annual contribution limit calculation on record before using a catch-up option.

Total Limit for All Retirement Plans

Employees are subject to an overall annual limit (determined by Section 415(c) of the Internal Revenue Code) or 80% of your eligible annual compensation, whichever is less. This means that the total of all contributions to the University 403(b), plus any applicable catch-up contributions, must not exceed this limit. Contact your campus UPB Benefits Services office to find out this year's annual limit.

More Information
Maximum contribution limits are established by the IRS each year. Please see the 403(b) Universal Availability Notice for these limits.

Enroll in, Make Changes to, OR Terminate my 403(b) Plan - access the Salary Reduction and/or Redirection Agreement (SRA) online to enroll or make changes to your 403(b) plan.


Maintained by University Human Resources | Contact Information | Last Update: 15-May-2018 | ID: 2814