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Retirement Contribution Limits

Directive Statement

Employees participating in the university’s available retirement plan options are subject to annual contribution limits.  These limits must be monitored by UF Human Resources to ensure that excess contributions do not occur.

Reason for Directive

The purpose of this directive is to comply with the Internal Revenue Code regarding contribution limits to the various retirement plans (defined benefit and defined contribution) available to UF employees.

Who must comply?

All university departments.

Procedures

  1. Employees may elect to make retirement plan contributions via payroll deduction up to the prescribed annual or fiscal year maximums
  2. All contributions to a 401(k), 403(b), SIMPLE plans, and SARSEP are aggregated and subject to a calendar year maximum
  3. A 457(b) plan has a separate limit that includes both employee and employer contributions
  4. Human Resource Services maintains the retirement deduction setups in myUFL (which automatically suspend the employee deductions when these maximums are reached.).  They also monitor compliance with all retirement-related contribution limits
  5. Additional contribution amounts and catch-up provisions are available for qualifying employees based on age and/or years of UF service.  Employees must contact their investment provider company for information regarding these provisions and qualifying criteria

Definitions

Defined Benefit Plan

A retirement plan that provides a guaranteed lifetime monthly benefit using a formula based on service and salary while working for a covered employer (e.g. the Florida Retirement System Pension Plan).

Defined Contribution Plan

A retirement plan in which the benefit depends on the amount of money contributed to the employee’s account and its growth over time (e.g. the Florida Retirement System Investment Plan).

Last Reviewed

05/01/2020: reviewed content

Resources

UF HR Benefits – Retirement Limits

IRS Guidance: How Much Salary Can You Defer if You’re Eligible for More than One Retirement Plan?

IRS Retirement Topics – 457(b) Contribution Limits

IRS Retirement Topics – 403(b) Contribution Limits

IRS Publication 571: Tax-Sheltered Annuity Plans (403(b) Plans)

Contacts

Payroll Services: (352) 392-1231

Tax Services: (352) 294-7266

Human Resource Services: (352) 392-2477