Texa$aver contribution maximums increase  

The contribution maximums for each of the Texa$aver 401(k) and 457 Plans* have increased $500 to $17,000 for the 2012 calendar year.

Over Age 50 or close to retirement?

The Over Age 50 Catch-up Provision, offered by both the 401(k) and 457 Plans, won’t increase in 2012. The provision allows employees to contribute an additional $5,500 above the allowed maximum to each plan.

The 457 Plan (but not the 401(k) Plan) lets employees who are getting close to retirement increase their contributions through a three-year Catch-up Provision. In 2012, this provision allows employees to use unused contributions (years in which they have not contributed to the plan) to save up to a limit of $34,000. Employees can participate in this catch-up provision in the three years before they reach retirement age. The three-year catch-up cannot be used at the same time as the Over Age 50 catch-up.

*The following information applies to Texa$aver 401(k) and 457 Plans, including the Roth contribution option. State agency employees can enroll in either or both of the 401(k) and 457 Plans. Employees of four-year higher education institutions can enroll in the 457 Plan. Community college employees can enroll in the 457 Plan if their college offers it (check with your benefits coordinator). Texa$aver is not available to Community Supervision & Corrections Department (CSCD) employees, Windham School District employees, and the employees of the Texas County and District Retirement System (TCDRS) and the Texas Municipal Retirement System (TMRS).