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The amount you can contribute to your retirement account in 2016 has not changed from 2015. For most employees, the maximum before-tax contribution is $18,000. If you are age 50 or older in 2016, you can contribute an additional $6,000 before taxes. All of your contributions go into the plan on a before-tax basis so you reduce the amount of federal income tax you pay.
If you are interested in contributing to the supplemental retirement plan, you can do so on a pre-tax basis or through a Roth 403(b) on an after-tax basis. The benefit of the Roth is that you do not pay taxes on the earnings while the contributions remain in the plan, and qualified withdrawals during retirement are tax-free. If you anticipate being in a higher tax bracket when you retire, you may benefit from making Roth contributions at a lower tax rate now and receiving your contributions tax-free when you retire.
If you are interested in participating in the retirement or supplemental retirement plan or maximizing your current contribution, please contact the Office of Human Resources at Ext. 2312 for more information.