The Internal Revenue Service has announced 2020 contribution limits for retirement plans such as TRS' TDA Program. The general contribution limit will increase from $19,000 in 2019 to $19,500 in 2020. The limit on additional "catch-up" contributions for members age 50 and older will increase from $6,000 to $6,500. In addition, certain members with at least 15 years of City employment may be eligible to make additional contributions up to $3,000.
Based on these rules, each year TRS determines the maximum allowable TDA contribution amount for each member. We also calculate the contribution rate (percentage of pay) that would result in the maximum contribution. That rate is known as the "Full-Year, Full-Contribution Rate."
You can now see—or elect—your 2020 Full-Year, Full-Contribution Rate after logging in to the secure section of our website. Rates elected by early December should take effect with the first payroll of the new year.