Contribution Limits

Contribution Limits

 

Retirement Plan Contribution Limits

VU Defined Contribution Retirement 403(b) Retirement Plan and

VU Supplemental Retirement Plan for Faculty and Professional Staff 403(b) Plan

Maximum Contribution Amount (415 Limit)

Federal law limits the total amount of contributions that may be contributed to certain Vincennes University retirement plans on behalf of an employee for any calendar year. The total amount contributed cannot exceed the lesser of 100 percent of the employee's compensation for the year or the "applicable dollar amount." (The IRS adjusts the contribution limit periodically for increases in the cost-of-living.) However, age 50 or older catch-up contributions will not be taken into account in applying the maximum contribution amount.

The maximum contribution amount limits the total amount of employer contributions and salary deferrals that can be made on behalf of an employee.

415(c) contribution limit

  • Total employer and employee contributions (excluding age 50 catch up) to the VU 403(b) plans--the VU Retirement Plan and the VU Tax Deferred Account Plan (TDA)--may not exceed $57,000 for 2020.

401(a)(17) compensation limit

  • Limits total compensation that may be used to calculate employer contributions to a salary of $285,000 for 2020.  May not apply to all participants.

 


VU Tax Deferred Annuity 403(b) Plan
402(g) contribution limit

 

The annual dollar limit for employee contributions to the VU Tax Deferred Annuity  403(b) plan is the lesser of:

  • 100 percent of compensation for the calendar year; or
  • $19,500 in 2020

AND

For age 50 and over catch-up the participant may increase the annual dollar limit on elective deferrals by an amount not exceeding the lesser of:

  • The participant’s compensation for the year reduced by any other elective deferrals of the participant for the year; or
  • $6,500 in 2020

 

 

 

VU Deferred Compensation 457(b) Plan
457(b)(2) contribution limit

 

The annual dollar limit for employee contributions to the VU Deferred Compensation 457(b) Plan is the lesser of:

  • 100 percent of compensation for the calendar year; or
  • $19,500 in 2020

AND

For age 50 and over catch-up the participant may increase the annual dollar limit on elective deferrals by an amount not exceeding the lesser of:

  • The participant’s compensation for the year reduced by any other elective deferrals of the participant for the year; or
  • $6,500 in 2020