Texa$aver contribution maximums increase
The contribution maximums for each of the Texa$aver 401(k) and 457 Plans* have increased by $500 to $17,500 for the 2013 calendar year.
The Over Age 50 Catch-up Provision, offered by both the 401(k) and 457 Plans, won’t increase in 2013. The provision allows you to contribute an additional $5,500 above the allowed maximum to each plan.
If you are getting close to retirement, the 457 Plan (but not the 401(k) Plan) lets you increase your contributions through a three-year Catch-up Provision. In 2013, this provision will allow you to use unused contributions (from years in which you did not contribute to the plan) to save up to a limit of $35,000. You can participate in this catch-up provision in the three years before you reach retirement age. The three-year catch-up cannot be used at the same time as the Over Age 50 catch-up.
* State agency employees can enroll in either or both of the Texa$aver 401(k) and 457 plans. Employees of four-year higher education institutions and community colleges can enroll in the 457 Plan or the Roth contribution option if their institutions offer it. Texa$aver is not available to employees of the Community Supervision & Corrections Department (CSCD) or Windham School District. Texa$aver is also not available to employees of the Texas County and District Retirement System (TCDRS) and the Texas Municipal Retirement System (TMRS) or individuals who receive their retirement benefits through those systems.