November 12, 2018
TO: Faculty and Staff Enrolled in the 403(b) Supplemental Retirement Plan and/or
457(b) Deferred Compensation Plan
FROM: Celeste Latham, Associate Vice President, Administration
Liz Guess, Director, Insurance and Employee Benefits
RE: IRS Contribution Limit for Calendar year 2019
Our records indicate you are participating in the NIU 403(b) Supplemental Retirement Plan and/or the State of Illinois 457(b) Deferred Compensation Plan with one of the approved NIU 403(b) approved vendors or 457(b) options provided by Central Management Services.
The Internal Revenue Service has recently announced the cost of living adjustments affecting the contribution limits to retirement plans for the 2019 tax year. In calendar year 2019, the annual contribution limit is changing from the current $18,500 for both plans to $19,000. If you are age 50 or older you are eligible for the “catch-up” provision which will allow you to defer an additional $6,000 annually, making the annual maximum $25,000 for each plan.
Based on IRS guidelines, the Human Resource PeopleSoft System will automatically determine if you are age 50 or older and adjust your yearly allowable maximum to $25,000 for 2019. However, it is the employee’s responsibility to determine their appropriate semi-monthly contribution, and it is the employee’s option to utilize the IRS annual maximum. Any change in contribution amounts for 2019 will require completion of the appropriate forms to change your deduction effective January 1, 2019. To change your semi-monthly 403(b) Supplemental Retirement Plan or the 457(b) Deferred Compensation Plan payroll deduction in time for the beginning of 2019, please refer to the locations listed below with the appropriate deadline dates.
|Plan||Location of Change Form||
Deadline Date to HRS for
The NIU 403(b) Salary Contribution Agreement and the CMS 457(b) Deferred Compensation Change form can also be obtained in the HRS Lobby in the Swen Parson and Lincoln Highway Human Resource Services offices.
If you have any questions regarding your 403(b) Supplemental Retirement Plan and/or your 457(b) Deferred Compensation Plan, please feel free to contact Stephanie Kruizenga at (815)753-6077.