Keep Your Retirement Savings Contributions within 2017 IRS Limits

Think you might be close to contributing more than the IRS limits this year? Take the time now to review the total amount you have contributed to your UC 403(b), 457(b), and/or DC Plan accounts. Here’s a breakdown of the limits:

  • You can contribute up to $18,000 pretax to the 403(b) Plan plus another $18,000 to the 457(b) Plan before taxes.
  • If you are age 50 or older, you can contribute a total of $24,000 to each plan before taxes.
  • In addition, you may be eligible for special and lifetime catch-up provisions to increase your limits.

If you are new to UC and made contributions this year to the 401(k) through your previous employer, that amount is included as well—and could cause you to exceed IRS limits.

Excess Contributions and Taxes

If you exceeded the IRS limit in 2016, you must submit a Return of Excess form before April 1, 2017. This will allow the plan(s) to reimburse you for your excess contributions, plus associated earnings.

  • In general, you will need to include your reimbursement of excess contributions in your taxable earnings for the year.
  • Your reimbursement will not be subject to early withdrawal penalties.

Questions?

If you have questions about submitting a Return of Excess Form—or if you need a copy of the form—call Fidelity Retirement Services at 1-866-682-7787.

If you have questions about your limits, tax treatment of over-contributions, or filing your income taxes, please consult a professional tax advisor.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Fidelity Brokerage Services LLC, member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2017 FMR LLC. All rights reserved.
771044.3.0

Take action