Dear Rutgers Colleagues,
Through the State of New Jersey, Rutgers is pleased to offer plans to allow employees to shelter a part of their wages from federal income taxes while saving for retirement. These plans include the IRC Section 457 New Jersey State Employees Deferred Compensation Plan and the IRC Section 403(b) Tax Savings Plan.
The New Jersey State Employee’s Deferred Compensation Plan (457 Plan) is a voluntary investment program that provides retirement income separate from, and in addition to, your basic pension plan. The IRC Section 403(b) Tax Savings Plan (also known as a tax-sheltered annuity plan) is a voluntary investment program that allows employees to defer a portion of their salary into individual accounts, including designated Roth accounts.
The Internal Revenue Service recently increased the limits for both the NJ State Employees’ Deferred Compensation Plan and the IRC Section 403(b) Tax Savings Plan. The new 457 (b) and 403(b) limits for 2026 are $24,500. Please note that the IRS allows for age-based catch-up contributions, which means that the contribution limits for employees age 50 and above are higher:
| IRS Contribution Limits for Employees Aged 50 and Above | |||
| Plan | Age 50-59 | Age 60-63 | Age 64+ |
| 457 | $32,500 (IRS Limit plus $8,000 age-based catch-up) | $35,750 (IRS Limit plus $11,250 age-based catch-up) | $32,500 (IRS Limit plus $8,000 age-based catch-up) |
| 403(b) | $32,500 (IRS Limit plus $8,000 age-based catch-up) | $35,750 (IRS Limit plus $11,250 age-based catch-up) | $32,500 (IRS Limit plus $8,000 age-based catch-up) |
| * Age as of 12/31/2026 |
Note that we await additional instructions from the state regarding the implementation of the Roth catch-up requirements under the SECURE 2.0 Act of 2022.
Employees may elect to make voluntary payroll deductions, which are in addition to their mandatory retirement contribution, up to these limits in 2026.
To change your deduction contribution rate in either of these plans, please complete the applicable form(s) below, log on to the OneSource Portal, and upload the completed form(s) under the Benefits section. Please note that once you submit the completed forms, it may take one to two payroll cycles for your change to take effect.
Carrier Allocation/Salary Reduction Agreement
If you have any questions, please contact the OneSource Rutgers Faculty and Staff Service Center at 732-745-7378 or OneSource@rutgers.edu.
Sincerely,
Vivian Fernández
Senior Vice President for Human Resources