January 30, 2009

IRS changes impact retirement benefits

IRS changes impact retirement benefits

This year, there are a few changes in Vanderbilt University's retirement benefit.

• The Internal Revenue Service changed the definition of “salary” upon which voluntary contributions are calculated. Mandatory contribution amounts are to be deducted from salary, and then voluntary percentages are calculated on that resulting amount.

• The maximum voluntary contribution level for 2009 is $16,500 for faculty and staff under age 50, and $22,000 for those 50 and older.

• As of Jan. 1, a Roth 403(b) after-tax option through Vanguard is available to enhance the current retirement benefit.

For more information, go here.