STATE OF CONNECTICUT |
||
NANCY WYMAN COMPTROLLER |
OFFICE OF
THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775 |
MARK OJAKIAN DEPUTY COMPTROLLER |
MEMORANDUM NO. 2002-08
February 28, 2002
TO THE HEADS OF ALL STATE AGENCIES
ATTENTION: | Personnel and Payroll Officers, Chief Administrative and Fiscal Officers and Business Managers |
SUBJECT: |
Contribution Limits for Deferred Compensation and Tax Sheltered Annuity Plans |
I. INTRODUCTION
The purpose of this memorandum is to advise of the contribution limits applicable to Internal Revenue Code ("IRC") Section 457, which governs the State of Connecticut Deferred Compensation Plan and IRC Section 403(b), which governs Tax Sheltered Annuity Plans.
II. BACKGROUND
Pursuant to federal law, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) provides for an increase to contribution limits under IRC Sections 457 and 403(b) plans. Furthermore, EGTRRA eliminated the coordination of benefits between 457 and 403(b) plans and added a "Special Catch-up" provision to permit participants who attain the age of fifty by December 31st of a calendar year to make additional contributions beyond their normal limitation.
III. DISCUSSION
Year | Maximum Annual Contribution Limit |
---|---|
2002 | $11,000 |
2003 | $12,000 |
2004 | $13,000 |
2005 | $14,000 |
2006 | $15,000 |
2007 and after | Indexed for inflation, in $500 increments |
E. Special Catch-up Contribution Limit Table
Year | Special Catch-up Contribution Limit |
---|---|
2002 | $1,000 |
2003 | $2,000 |
2004 | $3,000 |
2005 | $4,000 |
2006 | $5,000 |
2007 and after | Indexed for inflation, in $500 increments |
IV. CONCLUSION
Questions related to this memorandum may be directed to the Retirement & Benefit Services Division, Employee Benefits Unit at (860) 702-3543. Participants should contact their Financial Services Organization representative for assistance with establishing personal limitations.
NANCY WYMAN
STATE COMPTROLLER
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