Act now to maximize your 403(b) and 457(b) contributions
With the final pay dates for 2012 approaching, now is the time to act if you wish to maximize your pre-tax contributions to the UC Retirement Savings Program’s 403(b) and 457(b) plans or make changes for this calendar (taxable) year.
Following are some guidelines for when and how to process changes. Note that any changes you make now will continue in 2013, so don’t forget to readjust your contributions once the new year begins, if that is what you wish to do.
2012 Maximum Annual Contribution (MAC) for each plan
The maximum annual contribution (MAC) for each plan is $17,000 if you are below age 50. If you are age 50 or older by Dec. 31, 2012, the MAC is $22,500. Payroll deductions stop automatically when you reach these limits.
(Note that if you had 15 or more years of service with UC as of Dec. 31, 2011, you may be eligible to contribute an additional $3,000 in 2012 under the Lifetime Catch-up Provision; contact Fidelity at 866-682-7787 for details.)
You can see how much you’ve contributed so far this year by signing in to At Your Service. Click on “Earnings Statement” in the “Income and Taxes” section. Select the most recent pay date and click on “View Statement” in the right-hand column. When your earnings statement opens, scroll down to see year-to-date totals.
How to change your contribution amount
- By Phone: Call Fidelity Retirement Services at 1-866-682-7787, Monday through Friday, 5:00 a.m. to 9:00 p.m. (PT). After the prompts, enter your Social Security Number and PIN, or your User ID and PIN. When you hear “main menu,” say “representative.”
- Online: Go to http://www.netbenefits.fidelity.com and log in. Select the applicable plan, select “Contribution Amount” under “Act” in the left-hand column, and follow the prompts. Online transactions can be processed 24 hours a day, 7 days a week.
Cutoff dates for the final paychecks of 2012
Any changes you make must be in the payroll system prior to the payroll cutoff date to affect the next paycheck. Here are the deadlines for making changes to your plan contributions, which vary depending on whether you are paid monthly or biweekly:
If you are paid monthly, the check you receive on Nov. 30 will be the final paycheck of the 2012 calendar year.
- For 457(b) contributions, the deadline is Wednesday, Oct. 31, for making any changes that will be reflected on your Nov. 30 paycheck.
- For 403(b) contributions, the deadline is Thursday, Nov. 15, for making any changes that will be reflected on your Nov. 30 paycheck.
If you are paid biweekly, the check you receive on Dec. 19 will be the final paycheck of the 2012 calendar year.
- For 457(b) contributions, the deadline is Wednesday, Oct. 31, for making any changes that will be reflected on your Dec. 19 paycheck.
- For 403(b) contributions, the deadline is Friday, Dec. 7, for making any changes that will be reflected on your Dec. 19 paycheck.
Note that you may not deduct 100 percent of your pay, whether the deduction is for a single plan or a combined percentage for both plans. For example, if you elect a 50 percent deduction for each plan, or 70 percent for one plan and 30 percent for the other, no deduction will be taken for either plan.
If you have questions, please contact the UCOP Benefits Office at 510-987-0900.