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 (tax-sheltered annuity plan) is a voluntary investment program that lets employees defer some of their salary into individual accounts, including designated Roth accounts.
The Internal Revenue Service recently increased the limits for both the NJ State Employee’s Deferred Compensation Plan and the IRC Section 403(b) Tax Savings Plan. The new limits for 2024 are outlined below:
| Plan | Employees Under the Age of 50 | Employees 50 or Older* |
|---|---|---|
| 457 | 23,000 | 30,500 |
| 403(b) | 23,000 | 30,500 |
*The catch-up contribution limit ($7,500) for employees aged 50 and over remains the same in 2024.
Employees may elect to make voluntary payroll deductions, which are in addition to your mandatory retirement contribution, up to these limits in 2024.
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 or two payroll cycles for your change to be effective.
If you have any questions, please contact the OneSource Rutgers Faculty and Staff Service Center at 732-745-SERV (7378) or OneSource@rutgers.edu.
Sincerely,
Vivian Fernández
Senior Vice President for Human Resources