Your contribution rate is the percentage of your income you wish to allocate to your TDA Program account(s). For the traditional TDA, contributions are deducted from your gross pay (before tax) and reduce your current taxable income. Roth account contributions are taken from your net (after-tax) pay.
Your current rate is displayed.
Each year the Internal Revenue Code (IRC) establishes a contribution limit for Section 403(b) and 401(k) Plans. Your personal contribution limit for the current year is displayed on the screen. Contributions to either TDA Program account and any external 403(b) or 401(k) plans cannot exceed this amount. TRS can monitor your contributions for your TRS accounts but not for any external accounts. In general, TRS contributions will stop being deducted from your paychecks when your contributions reach the applicable limits; but, if you have external 403(b) or 401(k) accounts, you must ensure your aggregated contributions for the year do not exceed IRC limits.
Your annual contribution limit may also reflect “catch-up” contributions that are permitted under certain conditions. Age-based catch-up contributions are permitted for members who are aged 50 and older. Service-based catch-up contributions are permitted for certain members with 15 years of qualifying service. (Note: For certain high earners who are 50 or over, any age-based catch-up contributions must be made to a Roth account.) Details about the limits and rules are available in the Your Tax-Deferred Annuity Program brochure.